The UAE has introduced a novel capital markets regime through Federal Decree-Law No. 32 of 2025 (establishing the Capital Market Authority) and Federal Decree-Law No. 33 of 2025 (regulating capital markets activities) [“CMA Law”]. Taking effect on 1 January 2026, the CMA Law replaces Federal Law No. 4 of 2000 and aids in transitioning the regulatory authority from the Securities and Commodities Authority (SCA) to the newly formed Capital Market Authority (CMA).
A Unified Framework
A pivotal achievement of these reforms is the consolidation of the previous legislation into a unified statutory framework. This step aligns the UAE with global standards, harmonizes oversight under the CMA, strengthens consistent regulatory application, enforcement efficiency, and ensures clearer compliance expectations for market participants.
Stronger Enforcement and Governance Standards
The CMA’s bolstered powers represent one of the reform’s most significant features. The Authority now wields enhanced investigative capabilities, wider sanctioning powers, and the authority to issue settlements and publish disciplinary actions. Penalties have been significantly increased, underscoring a more assertive enforcement posture.
Governance obligations have also been reinforced through codified prospectus liability, expanded disclosure requirements, and the introduction of a statutory pricestabilisation safe harbour, tools commonly seen in advanced markets to safeguard transparency and mitigate information asymmetry.
Investor Protection and Early Intervention
On inspecting the notion of investor protection under the CMA Law, a defining theme of a strong capital markets framework, it is evident that it strengthens conflictofinterest rules, and imposes enhanced governance expectations on issuers and licensed firms. The introduction of a new early-intervention and resolution regime further marks a major advancement, in so far as the CMA may now impose additional capital buffers, mandate recovery plans, restructure operations, appoint temporary managers, or take other corrective actions to prevent emerging risks from escalating into systemic threats. This approach mirrors regimes in the EU and UK, placing the UAE alongside other sophisticated regulatory jurisdictions.
Expanded Scope
The CMA Law significantly broadens the regulatory perimeter. The framework further extends to foreign entities whose activities target UAE-based investors, addressing offshore structures looking to circumvent domestic oversight. Similarly, the regime now explicitly covers more complex investment funds, virtual assets used for investment purposes, and cross-border capital markets activities, ensuring the UAE remains equipped to regulate modern financial products and global investment.
A Strategic Step Forward
Taken together, these reforms represent a decisive shift in the UAE’s regulatory framework, advancing transparency and global credibility. By developing its legal infrastructure and empowering an independent regulator with far reaching authority, the UAE positions itself as a competitive, well-regulated financial centre capable of supporting complex and cross-border capital markets activity. The result is a framework designed to bolster investor confidence and elevate the UAE’s standing among the world’s leading financial jurisdictions.
Note: This Legal Update / Newsletter is intended for general informational purposes only and should not be construed as legal advice. It is based on laws and legal interpretations in effect as of the date of publication. Laws and regulations may change over time, and their application can vary depending on individual circumstances. Readers are strongly encouraged to seek specific legal counsel before acting on any of the information provided herein.rian and religious purpose in accordance with the law.