The UAE Government has issued two new federal decree laws aimed at modernising the country’s capital markets framework and reinforcing the stability, transparency, and global competitiveness of its financial sector.
The laws cover the Capital Market Authority and the Regulation of Capital Markets, marking a significant step in aligning the UAE’s regulatory ecosystem with leading international standards. They reinforce the independence of the Capital Market Authority and strengthen its role in safeguarding market integrity, fair competition, and financial stability.
Under the new framework, the Authority’s core mandates are clearly defined. These include regulating and supervising licensed financial activities and issuers, issuing binding standards for fair and effective market practices, supporting strong governance principles, monitoring systemic risks, and enhancing the international standing of the UAE capital markets.
The decree laws also advance compliance with global best practices and the requirements of key international organisations, including the International Organization of Securities Commissions, the World Bank, the International Monetary Fund, and the Financial Action Task Force. They promote international cooperation, facilitate mutual recognition, and support cross-border recognition of financial products.
Consumer protection and financial inclusion are central elements of the reforms. Licensed entities are required to ensure broad access to suitable financial services, reflecting digital transformation and financial technology developments. The framework also supports sustainability initiatives and national financial awareness programmes, while maintaining safeguards against irresponsible lending practices.
In addition, the Regulation of Capital Markets law introduces early intervention measures to address financial distress among licensed entities. These include recovery plans, enhanced capital and liquidity requirements, management restructuring, and resolution actions where necessary.
Administrative penalties have also been strengthened, allowing fines proportionate to violations and enabling greater transparency through the publication of sanctions.
News Source: Emirates News Agency
