Legislation Details
- Full Title: Federal Decree by Regarding the Capital Market Authority
- Law Type: Federal Decree
- Law Number: [no number provided]
- Issued Date: 01 Oct 2025
- Effective Date: 01 Jan 2026
- Official Gazette: No. 809
- Sector: Finance and Banking
- Status: Active
- Number of Articles: 65
- Chapters/Parts: 0
- Amendments: 0
Summary
This Federal Decree establishes the Capital Market Authority (CMA) as the federal public authority responsible for regulating and developing the capital market in the United Arab Emirates. The CMA replaces the previous Securities and Commodities Authority and is tasked with ensuring the integrity and efficiency of the capital market, promoting fair competition, and protecting the interests of investors. The CMA has broad regulatory, supervisory, and enforcement powers over financial activities, licensed persons, issuers, and dealings in securities and foreign securities within the UAE, excluding the Financial Free Zones. (Federal Decree by Regarding the Capital Market Authority, 2025, Arts. 1-5) The CMA's establishment and empowerment under this law are significant for businesses and individuals operating in the UAE's capital markets. The CMA's regulatory oversight, policy development, and enforcement capabilities are expected to enhance transparency, governance, and investor confidence in the UAE's financial markets, supporting the country's position as an international financial hub. (Federal Decree by Regarding the Capital Market Authority, 2025, Arts. 1-5)
What is the scope and purpose of this law?
The Federal Decree establishes the Capital Market Authority (CMA) as the federal public authority responsible for regulating and developing the capital market in the United Arab Emirates. The CMA's objectives, as outlined in Article 4, are to:
- Ensure the integrity and efficiency of the capital market
- Regulate and develop the capital market
- Achieve the UAE's objectives for the capital market
- Advance the UAE's capital market as an international financial center
- Enhance the UAE's competitiveness in international capital market indices
- Promote fair competition within the capital market
- Provide a conducive environment for investment that ensures the integrity of dealings and serves the national economy
- Consolidate the principles of proper and fair dealings, and protect the interests of investors and participants in the capital market
(Federal Decree by Regarding the Capital Market Authority, 2025, Art. 4)
What are the key definitions under this law?
Article 1 of the Federal Decree provides the following key definitions:
- State: The United Arab Emirates
- Authority: The Capital Market Authority
- Board: The Board of Directors of the Authority
- Chief Executive Officer (CEO): The Chief Executive Officer of the Authority
- Capital Market Regulation Law: Federal Decree by Law No. (33) of 2025 Regarding the Regulation of the Capital Market
- Relevant Legislation: The Capital Market Regulation Law, the legislation regulating the Authority and the Capital Market in force in the State, and the resolutions issued in implementation thereof
- Free Zone: Any free zone established or to be established within the State, excluding the Financial Free Zone
- Financial Free Zone: The zones that are subject to the provisions of Federal Law No. (8) of 2004 Regarding the Financial Free Zones, as amended, or any law superseding it
- Relevant Authorities: The Ministry of Economy and Tourism, the Central Bank of the UAE, the local licensing authorities competent for corporate affairs in the concerned Emirate, and any other entity in the State related to the provisions of this Decree and the Relevant Legislation
- Financial Activities: The financial activities specified pursuant to Article (3) of the Capital Market Regulation Law, which are related to the competencies and objectives of the Authority
- Market: The legal person licensed or approved by the Authority to provide the venue, means, or digital systems necessary to execute transactions in securities or foreign securities
- Capital Market Institutions: The Market, the Central Clearing, and the Central Depository, and any other institution deemed by the Board as a Capital Market Institution
- Self-Regulatory Organizations (SRO): Capital Market Institutions or other institutions to which the Authority grants operational and executive powers in relation to trading, business conduct, and membership, and the imposition of disciplinary measures and sanctions on their violating members, under the Authority's supervision and oversight
- Person: A natural or legal person
- Licensed Person: A person licensed or approved by the Authority, or registered therewith, to carry out one of the financial activities that fall within the regulatory competence of the Authority
- Approved Person: A natural person approved by the Authority to perform any functions related to financial activities, whether as part of the executive management or among the employees of the Licensed Person
- Executive Management: The holders of positions with persons that are subject to the supervision and oversight of the Authority, who assume management, planning, and supervisory functions
- Securities: A domestic financial instrument representing financial contracts, equity rights, or debt instruments that are tradable, transferable, or assignable, as defined in the article
- Issuer: A legal person established within the State and issues securities
- Foreign Issuer: A legal person established outside the State or within a Financial Free Zone, which issues or lists securities within the State
- Foreign Securities: Securities issued by a Foreign Issuer, and any paper, instrument, capital share, or other foreign financial instrument deemed by the Board as foreign securities
- Financial Product: Securities, Foreign Securities, virtual assets for investment purposes, and any other financial product falling within the competence of the Authority
- Tradable Products: Indices, currencies, interest rates, and commodities, including metals, natural resources, and agricultural products, where trading in any of which is limited to hedging contracts such as futures and options, and any other asset traded through contracts approved by the Board
- Board of Directors: The board of directors or the board of managers of the Issuer or the Licensed Person, as the case may be
(Federal Decree by Regarding the Capital Market Authority, 2025, Art. 1)
What are the main obligations and requirements?
The Federal Decree outlines several key obligations and requirements for the Capital Market Authority (CMA): 1. The CMA must verify the compliance of persons subject to its supervision with the Capital Market Regulation Law, its implementing regulations and rules, and other relevant legislation. (Federal Decree by Regarding the Capital Market Authority, 2025, Art. 5(1)(a)) 2. The CMA must propose necessary legislation for the regulation of the capital market in the UAE, and supervise and oversee the enforcement of the provisions of this Decree and the relevant legislation, after approval by the Cabinet. (Federal Decree by Regarding the Capital Market Authority, 2025, Art. 5(1)(b)) 3. The CMA must propose, develop, and implement the policies and strategies related to the regulation of the capital market in the UAE after approval by the Cabinet. (Federal Decree by Regarding the Capital Market Authority, 2025, Art. 5(1)(c)) 4. The CMA must issue the regulations, rules, manuals, circulars, and decisions necessary for the regulation of the capital market. (Federal Decree by Regarding the Capital Market Authority, 2025, Art. 5(1)(d)) 5. The CMA must mitigate systemic risks associated with the capital market and support financial stability therein, to ensure the continuity of systemically significant financial activities within its competence. (Federal Decree by Regarding the Capital Market Authority, 2025, Art. 5(1)(e)) 6. The CMA must supervise and oversee the financial activities, licensed persons, issuers, their board members and executive management, as well as foreign issuers and dealings in foreign securities within the UAE, excluding the Financial Free Zones. (Federal Decree by Regarding the Capital Market Authority, 2025, Art. 5(1)(f))
Which authorities or bodies are responsible for enforcement?
The Federal Decree establishes the following governance structure for the Capital Market Authority (CMA): 1. The CMA is a federal public authority that enjoys legal personality, financial and administrative independence, and full legal capacity. The CMA reports to the Cabinet. (Federal Decree by Regarding the Capital Market Authority, 2025, Art. 2(1)) 2. The CMA is led by a Board of Directors, which is responsible for exercising the powers and competencies granted to the Authority under the Decree and relevant legislation. (Federal Decree by Regarding the Capital Market Authority, 2025, Arts. 6-14) 3. The Board of Directors is composed of a Chairman and a number of members appointed by a Cabinet resolution, with specific membership requirements outlined in the Decree. (Federal Decree by Regarding the Capital Market Authority, 2025, Arts. 6-7) 4. The Board of Directors is responsible for, among other things, issuing the regulations, rules, manuals, circulars, and decisions necessary for the regulation of the capital market. (Federal Decree by Regarding the Capital Market Authority, 2025, Art. 5(1)(d)) 5. The CMA also has a Chief Executive Officer and an Executive Management team responsible for the day-to-day operations and implementation of the Board's decisions. (Federal Decree by Regarding the Capital Market Authority, 2025, Arts. 15-17)
What are the penalties for non-compliance?
The Federal Decree does not specify any penalties for non-compliance. The legislation does not provide details on the enforcement mechanisms or sanctions that may be imposed by the Capital Market Authority.
How does this law interact with other UAE legislation?
The Federal Decree references the following related UAE legislation: 1. Federal Law No. (1) of 1972 Regarding the Competences of Ministries and the Powers of Ministers, as amended. 2. Federal Law No. (4) of 2000 Regarding the Emirates Securities and Commodities Authority and Market, as amended. 3. Federal Law No. (8) of 2004 Regarding the Financial Free Zones, as amended. 4. Federal Decree by Law No. (26) of 2019 Regarding Public Finance, as amended. 5. Federal Decree by Law No. (22) of 2020 Regarding the Distribution of Competences and Powers between the Securities and Commodities Authority (SCA), and the Securities and Commodities Markets Licensed in the State. 6. Federal Decree by Law No. (33) of 2025 Regarding the Regulation of the Capital Market. The Decree states that the Capital Market Authority replaces the previous Securities and Commodities Authority established under Federal Law No. (4) of 2000, and that any references to the "Securities and Commodities Authority" in legislation shall be replaced by the "Capital Market Authority". (Federal Decree by Regarding the Capital Market Authority, 2025, Art. 2(2-3))
When did this law come into effect?
The Federal Decree by Regarding the Capital Market Authority was issued on 01 October 2025 and will come into effect on 01 January 2026. (Federal Decree by Regarding the Capital Market Authority, 2025, Issued Date and Effective Date)
Source Documents
This article analyses Federal Decree by Regarding the Capital Market Authority for legal research and educational purposes. For the purpose of interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text prevails. This does not constitute legal advice.