UAE capital markets regulator shifts from watchdog to ‘market engineer’

The UAE’s Capital Market Authority (CMA) has transformed itself from a "watchdog" to a "market engineer," according to its CEO, Waleed Al Awadhi. Speaking at the Meira 2026 conference in Dubai, Al Awadhi stated that the repositioning of the UAE, the Arab world's second-largest economy, as an international financial jurisdiction is a key economic development goal.

Over the past 18 months, the CMA has undergone a complete overhaul, harmonizing its laws and regulations with those of the financial free zones in Abu Dhabi and Dubai. This harmonization is aimed at strengthening the economy and competing with global financial centers like London, New York, Hong Kong, and Singapore. The UAE is actively working to diversify its economy away from oil, with capital markets and financial sector development being central to the transformation agenda.

In January, the UAE issued two federal decree laws to strengthen its capital markets regulations, enhancing the independence of the CMA and aligning them more closely with international regulatory frameworks. The CMA has also introduced a new framework to regulate virtual asset activities to keep pace with market growth. Despite recent crises, including the global financial crisis, the Covid-19 pandemic, and the ongoing geopolitical conflict, the UAE's capital market and financial system have demonstrated resilience, reinforcing investor confidence in the country's ability to operate effectively in challenging circumstances.