UAE Government issues two Federal Decree Laws on the Capital Market Authority and the Regulation of Capital Markets

The President of the United Arab Emirates has issued Federal Decree-Law No. (32) of 2025 and Federal Decree-Law No. (33) of 2025, which establish the regulatory framework for the capital markets sector and the Capital Market Authority. Both Decree-Laws entered into effect on January 1, 2026.

This legislative step forms part of the UAE’s ongoing efforts to modernize the financial sector’s legislative and supervisory frameworks; strengthen market stability, efficiency, and competitiveness; and ensure conformity with international best practices. The Decree-Laws further reinforce the stability of the Capital Market Authority and bolster its role in maintaining market integrity while promoting fair and orderly competition.

Key provisions include:

• Renaming the Securities and Commodities Authority as the Capital Market Authority.
• Introducing new regulated financial activities.
• Strengthening the Capital Market Authority’s supervisory powers over the capital markets sector.
• Regulating the Investor Protection Fund and the Settlement Guarantee Fund.
• Defining the Capital Market Authority’s role in prudential oversight and the management of exceptional circumstances.
• Granting the Capital Market Authority the power to enter into conciliation before the initiation of criminal proceedings.
• Establishing the Capital Market Authority’s jurisdiction to designate systemically important persons and to regulate early intervention, settlement, and resolution mechanisms.