Capital markets flourish as licensed companies surge 43 percent
The Capital Market Authority reports robust growth across the UAE's regulated financial ecosystem, with accredited professionals rising 64 percent and investor protection measures reaching new heights.
The health of a financial system reveals itself not in the headlines of boom times, but in the steadiness of its foundations. The Capital Market Authority has released its nine-month report for 2026, and the figures speak to a market that has grown not merely larger, but more resilient, more carefully governed and more protective of those who trust their capital to its care.
The expansion is tangible. Licensed companies increased 43 percent year-on-year, while the cohort of accredited professionals expanded by 64 percent. These are the scaffolding of a mature financial ecosystem, the professional architecture that supports sustainable growth. The combined market capitalisation of the Abu Dhabi Securities Exchange and Dubai Financial Market reached AED3.7 trillion by September, with traded value across the first nine months hitting AED408 billion. Foreign investors accounted for 49 percent of this activity, a testament to the confidence international capital places in the UAE’s markets.
Capital raising continued apace. Bond and sukuk issuances combined for AED576 billion during the period, while companies completed some AED3.4 billion in capital increases. The investment funds sector, too, has flourished: local investment funds increased 94 percent year-on-year to reach 97 by the third quarter, their assets under management growing 30 percent to AED28.6 billion. These are not merely numbers; they represent companies expanding, businesses investing in their future, and investors seeking to deploy their wealth productively within a regulated framework.
What distinguishes this growth is the vigilance that accompanies it. Financial penalties imposed by the Authority increased 246 percent year-on-year, with total penalties rising 23 percent to AED12.9 million. Warnings issued climbed 767 percent. These figures do not represent failure, but rather the maturation of regulatory oversight: a system robust enough to identify infractions and courageous enough to address them. The number of complaints handled rose 192 percent, and approximately AED1.2 billion was refunded to clients, a remarkable figure when compared to AED8 million in the corresponding period of 2025.
The regulatory landscape itself has evolved. Federal Decree-Laws No. 32 and 33 of 2025 entered into force on 1 January 2026, enhancing the CMA’s independence and supervisory powers. The Authority issued six regulatory instruments during the period, including a comprehensive Virtual Assets Regulatory Framework and Basel III-aligned capital requirements for licensed firms. In the realm of digital assets, 102 virtual assets were registered for admission to trading through the CMA’s new digital service during the third quarter alone. The UAE is positioned to become the pivotal hub for capital movement between East and West, and this regulatory infrastructure supports that ambition.
Waleed Saeed Al Awadhi, Chief Executive Officer of the Capital Market Authority, spoke of the Authority’s commitment to translating the vision of the nation’s leadership into regulatory initiatives that support a diversified and competitive economy. Despite global financial market challenges in 2026, the UAE’s capital markets have continued to demonstrate resilience, underpinned by strong regulatory foundations and advanced infrastructure.
Investor education and transparency have become cornerstones of the regulatory approach. The Authority delivered 224 awareness activities during the nine months, including five campaigns focused on financial literacy and responsible investment. Digital financial communications came under enhanced oversight, with 88 new financial influencer registrations bringing the total to 198 by September’s end. This 125 percent year-on-year increase reflects a regulatory system attuned to the evolving channels through which financial information reaches the public.
The CMA’s international standing has grown accordingly. Three memoranda of understanding were signed with regulators in Kazakhstan, Hong Kong and Mauritius, whilst the Authority’s Chief Executive was re-elected Chair of the Africa and Middle East Regional Committee of the International Organisation of Securities Commissions for 2026 to 2028. Through 23 meetings with counterpart regulators, the UAE continues to shape global standards for market governance and investor protection.
What it means for Abu Dhabi
These figures signal a market economy in which growth and governance move in concert. The 43 percent increase in licensed companies and 64 percent rise in accredited professionals represent not just expansion but deepening expertise across the financial services sector. For Abu Dhabi, this reflects the success of its long-term strategy to position itself as a centre of financial gravity within the region, attracting professional talent and capital seeking a stable, well-regulated environment.
The refund of AED1.2 billion to clients speaks to something more fundamental than procedural compliance: it demonstrates that the system is designed to protect the interests of those who participate in it. When international investors account for 49 percent of traded value, and when the markets demonstrate the resilience shown across volatile global conditions, Abu Dhabi’s position as a destination for capital strengthens. The growth in investment funds and capital raising activity creates opportunities for economic diversification and the emergence of new enterprises across the Emirates.
Source: WAM
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