The UAE Government Media Office reported that the two federal decree laws seek to reinforce the independence of the Capital Market Authority and its role in safeguarding the soundness and stability of the capital markets sector while ensuring fair competition. The legislation further aims to improve efficiency, enhance consumer protection and promote financial inclusion across the sector. It also establishes frameworks for international cooperation, mutual recognition of regulatory actions and early intervention measures for entities facing financial difficulties, including requirements for recovery plans, capital and liquidity standards as well as restructuring options. The Capital Market Authority gains designation as the resolution authority under the new laws with expanded powers that allow it to dismiss or appoint management, impose temporary administration and carry out restructuring or rescue measures, the UAE Government Media Office said in its statement. Fines for regulatory breaches can now reach up to 10 times any profits gained or losses avoided, providing a stronger deterrent against violations. The authority’s statement highlighted how these provisions will support more effective management of potential crises in the financial system. Fitch Ratings noted in an April 2025 assessment that the UAE debt capital market stood at $309 billion outstanding at the end of the first quarter of 2025 and projected expansion to $350 billion over 2025 and 2026 despite global volatilities. The Central Bank of the UAE indicated real GDP growth around 4.0 per cent in 2024, rising to 6.0 per cent in 2025 with non-oil GDP estimated at 5.3 per cent for the latter year. Such macroeconomic conditions have underpinned strong performance in local exchanges where the Dubai Financial Market increased its capitalisation by approximately 19 per cent to AED801 billion by late 2025. The new framework aligns the UAE with requirements from global bodies including the International Organisation of Securities Commissions, the World Bank, the International Monetary Fund and the Financial Action Task Force, according to the government statement. This alignment is expected to improve the country’s standing in international evaluations and facilitate cross-border regulatory efforts. The UAE Government Media Office added that the changes form part of ongoing modernisation of financial legislation. CEIC Data placed UAE market capitalisation at $1,068 billion in June 2026 after reaching an all-time high of $1,166 billion earlier that year. Industry analyses have pointed to continued listings activity on the Abu Dhabi Securities Exchange with its market value approaching AED3 trillion by the end of 2025. The Central Bank of the UAE has separately tracked rising deposits, lending and assets under management in the banking sector that complement these capital market developments.


