UAE issues two federal decree laws on Capital Markets

January 01, 2026 / 8:27 PM

Sharjah 24 – WAM: The UAE Government has issued a federal decree law concerning the Capital Market Authority and a federal decree law on the Regulation of Capital Markets, part of ongoing efforts to modernise the financial sector’s legislative and regulatory framework and enhance its stability, efficiency, and competitiveness.

Strengthening the Capital Market Authority

The Decree Laws reinforce the independence of the Capital Market Authority and its role in safeguarding the soundness and stability of the capital markets, ensuring fair competition, and aligning the national regulatory ecosystem with international standards.

Core mandates of the Authority

The laws define the main responsibilities of the Capital Market Authority, including regulating licensed financial activities and issuers, supervising compliance, issuing regulations and standards for fair and effective practices, supporting governance principles, monitoring system-related risks, and enhancing the UAE’s global reputation as a financial hub.

Alignment with international standards

The laws aim to comply with global best practices and the requirements of international organisations such as the International Organisation of Securities Commissions, the World Bank, the IMF, and the Financial Action Task Force. They also support international cooperation, mutual recognition of financial products, and improved international assessments.

Consumer protection and financial inclusion

The Decree Laws establish a framework for consumer protection and financial inclusion, ensuring all community segments can access appropriate financial services. This includes promoting digital transformation, financial technology, sustainability, and leadership in financial services, alongside national awareness programs and responsible lending practices.

Proactive measures and crisis management

The Regulation of Capital Markets Decree Law introduces early intervention measures to address deterioration in licensed persons’ financial positions. This includes recovery plans, additional capital and liquidity requirements, restructuring strategies, temporary administration, mergers, acquisitions, or liquidation when necessary, and other measures to protect clients and financial stability.

Administrative sanctions and transparency

The laws allow the Capital Market Authority to impose fines proportional to violations, up to ten times the profit gained or loss avoided, enable reconciliation before final judicial decisions, and publish sanctions on the Authority’s website to promote transparency and market discipline.