The UAE Capital Market Authority delivered a year of robust regulatory and market performance in 2025, underpinned by rising liquidity, sustained investor inflows, and an expanding supervisory framework that continues to deepen the country’s capital markets.
According to the Authority’s annual report released Monday, average daily trading across UAE financial markets rose to AED2.21 billion, marking a 24.16 percent increase from the previous year. The gains reflect growing participation from both domestic and international investors, reinforcing the UAE’s standing as a regional financial hub.
Foreign investment remained a key driver of market activity. Net foreign inflows reached AED18.7 billion, with AED14.1 billion directed into Abu Dhabi and AED4.6 billion into Dubai. Institutional investors also contributed, with net inflows totaling AED1.17 billion.
Market capitalization across the UAE’s main exchanges recorded steady growth. The Abu Dhabi Securities Exchange saw its total value climb to AED3.14 trillion, up 4.7 percent, while the Dubai Financial Market rose 7.6 percent to AED0.98 trillion.
Mohamed Ali Al Shorafa, Chairman of the Authority, said the UAE’s financial sector is undergoing a structural transformation shaped by national economic priorities and increasing global integration. He noted that the regulator is developing a framework to balance economic expansion with financial stability and investor confidence.
Chief Executive Officer Waleed Saeed Al Awadhi described 2025 as a milestone year, citing progress across legislative reform, supervisory efficiency, and innovation. These efforts, he said, are aimed at ensuring long-term market resilience while strengthening investor trust.
Issuance activity remained active throughout the year. Total equity listings reached AED14.53 billion, including AED7.29 billion raised through initial public offerings and AED7.24 billion through direct listings. Companies also raised AED6.12 billion via capital increases.
Debt markets also expanded. The value of listed bonds and sukuk stood at AED27.6 billion, while private placements of bonds and sukuk totaled AED638 billion. Green financing instruments accounted for AED8.6 billion, highlighting growing interest in sustainable finance.
Corporate activity remained steady. Four companies were listed during the year, and five new public joint-stock companies were registered. The Authority approved three mergers and acquisitions, bringing the total number of listed companies to 199 by the end of 2025.
Asset management activity saw significant growth. The number of licensed local investment funds more than doubled to 37, compared with 18 a year earlier. End-of-service gratuity savings funds reached 13, reflecting continued development of long-term savings frameworks.
Foreign fund participation also expanded, with 158 funds registered with the Authority. A further 44 funds were approved under passporting arrangements, and four foreign funds were registered for listing purposes.
The licensing segment recorded notable expansion. The number of licensed firms rose to 244, with a total of 602 licenses issued, including 252 new activities.
From a governance standpoint, the Authority provided 259 legal consultations and reviewed 58 grievances over the year. It also secured 12 ISO certifications, reflecting its focus on operational standards and compliance.
Supervisory activity intensified as part of a risk-based oversight model. The Authority conducted on-site inspections for 80 of 84 targeted companies and assessed risks across 155 licensed firms. It also organized 14 compliance workshops attended by more than 2,200 participants.
Enforcement actions increased alongside market activity. The regulator handled 75 complaints and issued 324 supervisory actions, including 99 warnings, 82 alerts, 73 financial penalties, and 44 referrals to public prosecution authorities. It also imposed two trading suspensions and issued four directives.
On the international front, the Authority expanded its global engagement, raising the total number of memoranda of understanding to 166, including seven new agreements. It held 52 bilateral meetings, processed 65 requests from members of the International Organization of Securities Commissions, and participated in 10 international conferences.
Human capital development remained a priority. Emiratisation reached 82.8 percent of the workforce, which totaled 169 employees. Women accounted for 42.8 percent of staff and held 9.1 percent of leadership roles.
The report underscores the UAE’s continued push to align regulatory sophistication with market growth, positioning itself to attract capital flows and strengthen its role in the global financial system.
With inputs from WAM
