UNITED ARAB EMIRATES Trends and Developments Contributed by: Arnold Krutilins and Gabrielle Margerison (nee Lowe), White & Case LLP
Introduction Over the past year, the UAE has continued to strength - en its position as a leading fintech hub through a combination of legislative reform, regulatory inno - vation and technology-driven initiatives. Regulators across Onshore UAE, the ADGM and the DIFC (each as defined below) have introduced new frameworks to address developments in digital assets, payment technologies, open finance and technology-enabled financial services. These developments reflect a clear policy objective to support fintech innovation while ensuring appropriate regulatory oversight and inves - tor protection. The UAE’s Multi-Jurisdictional Regulatory Framework Before considering recent trends and developments in the United Arab Emirates (the “UAE”), it is necessary to understand the structure of its legal and regula - tory framework. This differs from many other jurisdic - tions, as financial services activities may be carried on across multiple legal jurisdictions within the UAE, each with its own regulatory regime. For financial services regulatory purposes, the UAE comprises three separate jurisdictions: • “Onshore UAE”: This refers to the areas outside the designated financial free zones, encompassing both “mainland” UAE and the various non-financial free zones. This jurisdiction is primarily governed by the Central Bank of the UAE (the “CBUAE”), which oversees banking, payment services, insur - ance and broader financial stability and the Capital Markets Authority (the “CMA”) (previously known as the Securities and Commodities Authority or “SCA”), which regulates securities, capital markets and investment activities. Onshore UAE operates under a civil law framework, with regulations and supervisory practices distinct from those found in the common law-based financial free zones of the DIFC and the ADGM (as defined below). • The Abu Dhabi Global Market (the “ADGM”): The ADGM is a financial free zone established in Abu Dhabi with its own legal and regulatory frame - work. Financial services carried on in the ADGM are regulated by the Financial Services Regulatory Authority (the “FSRA”), which is responsible for
licensing and supervising financial institutions and fintech firms operating in the ADGM. • The Dubai International Financial Centre (the “DIFC”): The DIFC is a financial free zone estab - lished in Dubai with its own legal and regulatory framework. Financial services carried on in the DIFC are regulated by the Dubai Financial Services Authority (the “DFSA”), which is responsible for licensing and supervising financial institutions and fintech firms operating in the DIFC. Each jurisdiction has its own legal framework, regula - tor and licensing regime governing financial services activities, including fintech-related products and ser - vices. In addition, virtual asset-related activities in the Emir - ate of Dubai are regulated by the Virtual Assets Regu - latory Authority (“VARA”), except where such activities are carried on in the DIFC. VARA establishes a dedi - cated licensing and regulatory framework for virtual asset service providers (“VASPs”), including crypto exchanges, custody providers and digital asset inter - mediaries. Although the CBUAE, CMA, FSRA, DFSA and VARA each maintain separate licensing and supervisory frameworks, recent regulatory developments across these jurisdictions reflect a co-ordinated regulatory focus on fintech innovation, digital payments, open finance and digital asset markets. The New AML Law In September 2025, the UAE enacted Federal Law No 10 of 2025, Concerning Combating Money Laun - dering, Terrorism Financing and the Financing of Pro - liferation, (the “New AML Law”), which repeals and replaces Federal Law No 20 of 2018 (as amended) (the “Previous AML Law”). The New AML Law introduces a number of amendments intended to strengthen the UAE’s existing anti-money laundering (“AML”) and counter-terrorist financing regime, and, for the first time, includes an express framework for combating proliferation financing, which further aligns the UAE’s framework with the standards of the Financial Action Task Force.
931 CHAMBERS.COM
Powered by FlippingBook