UAE capital markets grow as licensed companies rise 43% and market value reaches AED 3.7 trillion

Dubai: The UAE’s financial markets performed strongly across key regulatory indicators during the first nine months of 2026, with the number of licensed companies increasing by 43% year on year amid enhanced regulatory oversight and continued financing activity. The Capital Markets Authority (CMA) said the growth reflected the continued expansion of the UAE’s regulated financial services ecosystem. The number of licensed professionals increased by 64% year on year. The UAE’s capital markets demonstrated resilience amid global market fluctuations, with the combined market capitalisation of the Abu Dhabi Securities Exchange (ADX) and Dubai Financial Market (DFM) reaching AED 3.7 trillion by the end of September 2026. Total trading value reached AED 408 billion during the first nine months of the year, with foreign investors accounting for 49% of the total. The general indices of both ADX and DFM closed higher in September 2026 than in the same period a year earlier, while market volatility declined during the third quarter, reflecting greater stability in trading activity. Capital-raising activity continued, with total bond and sukuk issuances reaching AED 576 billion during the first nine months of 2026. Companies also completed capital increases of approximately AED 3.4 billion during the same period. The investment funds sector maintained its growth, with the number of local investment funds increasing by 94% year on year to 97. Assets under management in these funds rose by 30% compared with the same period last year, reaching AED 28.6 billion in the third quarter of 2026. In parallel, the Authority continued implementing a range of strategic projects aimed at strengthening its regulatory and operational capabilities and supporting the long-term competitiveness of the UAE economy. Investor protection and effective enforcement remained key priorities during the first nine months of 2026. The number of financial penalties imposed increased by 246% year on year, while their total value rose by 23% to AED 12.9 million, reflecting the Authority’s continued efforts to strengthen regulatory compliance and market discipline. The number of warnings issued by the Authority also increased by 767% as part of its efforts to address non-compliance and maintain market discipline. At the same time, the number of complaints handled increased by 192%. Approximately AED 1.2 billion was returned to clients, compared with around AED 8 million during the same period in 2025, underscoring the importance of protecting investors’ financial rights. Waleed Saeed Al Awadhi, CEO of the Capital Market Authority (CMA), said: “At the CMA, we continue to work towards realizing the vision and directives of our wise leadership through high-quality regulatory initiatives that support the UAE’s objectives of building a diversified and competitive economy and enhance the role of capital markets in driving sustainable economic growth. We are focused on developing a more proactive and efficient regulatory framework, enhancing investor protection and market transparency, and adopting modern technologies that support responsible innovation and strengthen investor confidence.” He added: “Despite the challenges faced by global financial markets in 2026, the UAE capital markets continued to demonstrate their resilience and adaptability, underpinned by a robust regulatory foundation and advanced infrastructure. The growth in the number of licensed companies and the continued activity in raising capital reflect the strength of the markets and their ability to support economic activity. We look forward to enhancing their competitiveness and consolidating the UAE’s position as a trusted destination for long-term investments.” The first nine months of 2026 also saw the implementation of Federal Decrees-Law No. 32 and No. 33 of 2025, which came into effect on 1 January 2026. The legislation strengthened the Authority’s regulatory independence, supervisory powers and investor protection mechanisms while maintaining market stability. During the same period, the Authority issued six regulatory instruments, including a comprehensive framework for regulating virtual assets, Basel III-compliant capital requirements for licensed companies and expanded flexibility in the use of collateral. The Authority is also continuing work on seven additional legislative proposals and has issued a consultation paper on corporate governance disclosure. The CMA continued implementing its framework for regulating virtual assets, with 102 virtual assets registered for trading through its new digital service during the third quarter of 2026. Alongside these regulatory measures, the CMA continued its investment education and awareness efforts, conducting 224 awareness activities, including five campaigns, during the first nine months of 2026. The initiatives were aimed at promoting financial literacy, encouraging responsible investment and raising awareness of market risks. The CM