President His Highness Sheikh Mohamed bin Zayed Al Nahyan has issued Federal Decree Law No. (6) of 2025 to regulate the Central Bank, financial institutions, and insurance activities, reinforcing the UAE’s commitment to a stable and globally competitive financial sector.
The new law strengthens the Central Bank’s independence and supervisory role, aiming to safeguard monetary and financial stability while aligning the nation’s financial framework with international best practices. It outlines the Bank’s key functions, including implementing monetary policy, managing foreign reserves, and overseeing licensed financial activities to ensure effective and transparent financial operations.
Under the law, the Central Bank is empowered to manage foreign reserves to support the national currency and ensure sufficient coverage of the monetary base. It will also promote sustainable financing, enhance governance standards, and monitor regulatory risks across the financial ecosystem.
The decree prioritises consumer protection and financial inclusion, requiring financial institutions to provide accessible services to all segments of society and to support digital transformation in banking. It also introduces a unified complaints process through the independent entity “Sanadak” and establishes specialised judicial committees to settle financial disputes up to AED100,000.
To protect financial stability, the law enables early intervention in cases of institutional distress, granting the Central Bank authority to implement recovery plans, enforce structural reforms, or take over management if necessary. As the designated Resolution Authority, the Central Bank can also restructure or liquidate institutions to preserve critical services.
The decree further raises the ceiling for administrative fines and permits the publication of penalties to ensure market transparency and accountability across the UAE’s financial landscape.
News Source: Emirates News Agency
