UAE Capital Market Authority Approves Record 3,170 Licenses in 2025, Driving 150 % Growth and Asset Expansion

UAE Capital Markets Experience Surge in Licensing and asset Growth

Abu Dhabi, UAE – The United Arab Emirates’ Capital Market Authority (CMA) reported a remarkable year of growth in 2025, issuing 3,170 new licenses – a nearly 150% increase compared to the 1,272 licenses granted in 2024. This significant rise underscores growing confidence in the nation’s regulatory framework and a significant uptick in participation within its financial markets. The expanding investment landscape positions the UAE as a key regional and global financial center.

Unprecedented Growth in Market Participation

This licensing surge signifies one of the moast substantial annual increases in the Authority’s history. It highlights a consistent rise in both market engagement and adherence to regulatory standards. The sustained activity is also mirrored in strong performance indicators across the UAE’s financial sector.

Assets Under Management Reach $470 Billion

Alongside increased participation, assets under management experienced noteworthy expansion, reaching approximately $470 billion across the UAE. This demonstrates the increasing scale and institutional sophistication of the market.This figure reflects a broader trend of increased investor confidence and fund inflows into the region. According to a report by Statista, assets under management in the UAE are projected to continue growing at a compound annual growth rate of 6.8% between 2024 and 2029.

Investment Fund Landscape Witnesses Dramatic Expansion

The domestic investment fund sector experienced notably robust growth. Locally domiciled investment funds saw a remarkable 322% increase in 2025. The total number of funds supervised by the Authority, including those “passported” from other jurisdictions, increased by approximately 66%, rising from 119 in 2024 to 197 in 2025.

Key Metrics: 2024 vs. 2025

Metric	2024	2025	Change
Licenses Issued	1,272	3,170	+149.7%
Total funds Under Oversight	119	197	+65.5%
Assets Under Management	Approximately $380 Billion	Approximately $470 Billion	+23.7%

This expansion signals a more diversified array of investment strategies and structures available to both individual and institutional investors. it also contributes to the greater depth and long-term stability of the UAE’s financial markets.

Regulatory Enhancements Bolster Market Confidence

Waleed Saeed Al Awadhi, Chief executive Officer of the Capital Market Authority, affirmed that the Authority’s 2025 performance demonstrates the ongoing maturation of the UAE’s capital markets and the efficacy of its regulatory policies. He emphasized that the increase in licensing and asset expansion reflects mounting trust in the regulatory atmosphere and market involvement.

Looking forward, Mr. al Awadhi stated the Authority will persistently refine its supervisory methods and regulatory tools to align with evolving market dynamics.This commitment will ensure future growth is anchored by strong governance, openness, and effective investor safeguards. These developments promise a greater influx of long-term capital and solidify the UAE’s position as a leading regional and international investment hub.

Recent regulatory updates, including new federal decree laws governing the Capital Market Authority and capital market regulation, which came into effect in 2026, further strengthen the foundations of the UAE’s securities and commodities markets. These laws aim to provide greater clarity and protection for investors while fostering innovation within the financial sector.

The UAE’s strategic location, investor-friendly policies, and ongoing commitment to regulatory reform are attracting increasing international attention. As the nation continues to diversify its economy, its capital markets are poised for continued growth and innovation.

What impact will these regulatory changes have on foreign investment in the UAE? Do you believe the growth in assets under management is lasting in the long term?

Share your thoughts in the comments below and join the conversation!

What impact will the UAE Capital Market Authority’s approval of 3,170 new licenses in 2025 have on the country’s investment landscape and economic diversification?

UAE Capital Market Authority Approves Record 3,170 Licenses in 2025, Driving 150% Growth and Asset Expansion

The UAE’s financial landscape experienced a monumental surge in 2025, with the Capital Market Authority (CMA) approving a record-breaking 3,170 new licenses. This represents a staggering 150% increase compared to the previous year,signaling robust growth and escalating investor confidence within the nation’s capital markets. This surge isn’t just about numbers; it’s a clear indicator of the UAE’s evolving position as a global financial hub.

A Deep Dive into the License Approvals

the CMA’s licensing spree encompassed a diverse range of financial activities, demonstrating the broadening scope of the UAE’s financial services sector.Key areas experiencing meaningful growth include:

* Investment Firms: A substantial portion of the new licenses were granted to investment firms, reflecting increased demand for wealth management and portfolio diversification services.

* Asset Managers: The number of licensed asset managers saw a considerable uptick, driven by both domestic and international investors seeking professional management of their capital.

* FinTech Companies: The CMA continued its commitment to fostering innovation, approving a significant number of licenses for fintech companies operating in areas like digital payments, robo-advisory, and blockchain technology. This aligns with the UAE’s broader strategy to become a leading fintech destination.

* Brokerage Houses: Increased trading volumes and market participation led to a rise in licensed brokerage houses, facilitating access to capital markets for a wider range of investors.

* Specialized Financial Services: Licenses were also issued for specialized financial services, including corporate advisory, private equity, and venture capital firms.

The Impact on Asset Expansion

The surge in licensing directly fueled substantial asset expansion within the UAE’s capital markets. Preliminary data indicates a total asset increase of approximately 32% throughout 2025. Several factors contributed to this growth:

1. increased Foreign Direct Investment (FDI): The streamlined licensing process and favorable regulatory habitat attracted significant FDI inflows,boosting asset values.
2. Domestic Investor Participation: A growing number of UAE residents actively participated in capital market investments,contributing to the overall asset expansion.
3. Strong Economic Performance: The UAE’s resilient economic performance, driven by diversification efforts and strategic investments, created a positive environment for capital market growth.
4. Real Estate Investment trusts (REITs): The increasing popularity of REITs provided investors with access to the real estate market, further expanding asset classes available within the capital markets.

Regulatory Framework & CMA Initiatives

The CMA’s proactive approach to regulation played a crucial role in fostering this growth. Key initiatives included:

* Streamlined Licensing Procedures: The CMA simplified and expedited the licensing process, reducing bureaucratic hurdles and attracting new entrants to the market.

* Enhanced Regulatory Oversight: Despite easing licensing requirements, the CMA maintained robust regulatory oversight to ensure market integrity and investor protection.

* FinTech Regulatory Sandbox: The CMA’s FinTech regulatory sandbox allowed innovative companies to test their products and services in a controlled environment, fostering innovation while mitigating risks.

* Investor Education Programs: The CMA launched comprehensive investor education programs to enhance financial literacy and promote informed investment decisions.

* Adoption of International Standards: The CMA continued to align its regulatory framework with international best practices, enhancing the UAE’s reputation as a well-regulated financial center.

Benefits for Investors and the Economy

The CMA’s achievements in 2025 deliver significant benefits to both investors and the broader UAE economy:

* Increased Investment Opportunities: A wider range of licensed firms provides investors with more choices and access to diverse investment products.

* Enhanced Market Liquidity: Greater participation from both domestic and international investors improves market liquidity, making it easier to buy and sell assets.

* Job Creation: The growth of the financial services sector creates new employment opportunities for skilled professionals.

* Economic Diversification: A thriving capital market contributes to the UAE’s economic diversification efforts, reducing reliance on oil revenues.

* Improved Capital Allocation: Efficient capital markets facilitate the allocation of capital to productive investments, driving economic growth.

Looking Ahead: Future Trends and Challenges

While the outlook for the UAE’s capital markets remains positive, several trends and challenges warrant attention:

* Sustainable Finance: Growing demand for sustainable investment options will likely drive the advancement of green bonds and ESG-focused investment products.

* Digital Assets: The increasing adoption of digital assets, such as cryptocurrencies, will require careful regulatory consideration.

* Cybersecurity Risks: The growing reliance on technology increases the risk of cyberattacks, necessitating robust cybersecurity measures.

* Global Economic Uncertainty: Geopolitical tensions