World Corporate Law News – UAE Capital Market Law & Federal Decree Updates

The UAE has introduced two significant Federal Decree Laws, which establish two main objectives to develop its capital market system and create better financial system monitoring. The reforms serve as part of the national strategy aiming to update financial laws while improving market security and developing supervisory practices that meet global standards.

The President of the UAE signed Federal Decree Law No. (32) of 2025 and Federal Decree Law No. (33) of 2025 into law on 12 February 2026, which both started operating on 1 January 2026. The laws create an all-encompassing capital markets regulatory system, which establishes the Capital Market Authority (CMA) as the governing body for capital markets in the country.

Key Regulatory Developments

The Decree Laws bring forward an important transformation, which results in the Securities and Commodities Authority (SCA) changing its name to the Capital Market Authority (CMA). The change reflects an expansion of supervisory responsibilities and signals a strengthened institutional mandate.

The legislation creates new essential market stability measures that improve investor trust through its various implemented provisions:

• The capital markets sector will experience growth through its regulated financial activities
• The CMA will receive enhanced supervisory capabilities and expanded authority to enforce regulations
• The formal regulation establishes boundaries for the Investor Protection Fund and the Settlement Guarantee Fund
• The CMA defines its responsibility to conduct market oversight through its prudential powers during times of market disruptions
• The CMA has the right to begin conciliation procedures before bringing criminal charges against a defendant
• The authority enables the power to identify systemically vital individuals, and the power to execute early intervention measures, settlement processes, and resolution methods

These measures establish fair competition standards that will enable markets to function smoothly while protecting financial stability during times of economic change. 

Enhanced Investors Protection and Market Stability

The regulatory framework for the Investor Protection Fund and the Settlement Guarantee Fund operates as an essential mechanism that strengthens market security measures. The UAE strengthens its investor compensation system through federal legislation, which establishes these mechanisms for investor compensation and settlement assurance.

The CMA now holds extended powers which allow it to manage unusual situations while implementing preventive strategies. The organization adopts a future-oriented method which focuses on anticipating risks and avoiding crisis situations.

The introduction of conciliation powers before criminal proceedings creates enforcement flexibility because it enables regulatory bodies to achieve structured settlements when needed.

Broader Global Corporate Developments

The Securities Commission of Malaysia announced its selection of LC Wakaful Digital Sdn Bhd as the first Social Exchange Platform operator in Malaysia which operates through international corporate law. The initiative, launched under Malaysia’s Capital Market Masterplan 2026–2030, aims to create a regulated and transparent platform for social impact financing.

The Social Exchange will establish structured donation channels that approved non-profit organisations can use to improve transparency and accountability in social finance. The platform is expected to go live on 19 February 2026, initially enabling direct cash donations under the Income Tax Act 1967 before expanding to include additional capital market instruments in subsequent phases.

The development shows how international markets increasingly implement better governance standards, which apply to both traditional financial markets and markets that focus on impact investment.

Implications for the UAE Business and Investment Landscape

The capital market reforms in the UAE will create major effects which will impact all listed companies and financial institutions, investment managers, and cross-border investors. The new governance standards and increased supervisory authority will build investor trust, which will lead to higher capital investments.

Better regulatory definitions provide businesses in capital market-dependent sectors, such as real estate development and infrastructure development, and institutional asset management, with better business forecasting capabilities. The UAE needs a strong regulatory system to protect its competitive edge against international investment, which continues to enter the country while ensuring its long-term economic stability.

Commitment to Transparency and Growth

The UAE demonstrates its dedication to establishing a clear financial system through its introduction of Federal Decree Laws No. (32) and No. (33) of 2025, which creates a framework for transparent financial operations and secure economic stability and international financial standing. The country maintains its status as a top financial center through its enhanced supervisory abilities and investor protection measures.

Organizations that operate in capital-intensive industries need to stay current with regulatory changes while developing their capacity to manage new laws. 

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