The UAE’s capital markets recorded robust growth and deeper regulatory maturity in 2025, underpinned by strong issuance activity, rising investment flows and an expanding framework for emerging financial activities, according to the Capital Market Authority’s annual report.
Issuance activity remained a key driver of market momentum during the year, with total share listings reaching Dh14.53 billion. This included Dh7.29 billion raised through initial public offerings and Dh7.24 billion through direct listings, reflecting sustained appetite for equity capital across Abu Dhabi and Dubai. Capital increases approved for public joint‑stock companies amounted to just over Dh6.1 billion, while three mergers and acquisitions were cleared, highlighting continued consolidation in parts of the market.
Debt markets also deepened significantly, with the value of listed bonds and sukuk reaching Dh27.6 billion, alongside private placements totalling around Dh638 billion. Within this segment, sustainable finance gained traction as green bonds and sukuk registered for listing rose to Dh8.6 billion, up more than 50 per cent from the previous year. The CMA said this reflected both issuer demand and regulatory efforts to promote sustainability‑linked instruments.
Market participation broadened further through the expansion of investment funds. The number of licensed local funds more than doubled to 37 in 2025, compared with 18 a year earlier, while foreign investment funds registered with the authority rose sharply, supported by direct promotion and mutual recognition arrangements. End‑of‑service gratuity savings funds also expanded, offering private‑sector employees regulated options to invest workplace benefits.
Secondary market indicators pointed to solid liquidity and investor confidence. Average daily trading across UAE markets reached about Dh2.21 billion, while net foreign investment inflows stood at Dh18.7 billion. Market capitalisation climbed to approximately Dh3.14 trillion on the Abu Dhabi Securities Exchange and Dh0.98 trillion on the Dubai Financial Market, with both indices posting gains over the year.
Alongside market growth, the regulator intensified its focus on governance and investor protection. Companies’ compliance with corporate governance reporting reached more than 98 per cent, while electronic systems for shareholder meetings continued to improve participation and transparency. Total cash dividends approved for the 2024 financial year reached Dh89.6 billion, led by the banking, real estate and energy sectors.
Enforcement activity remained measured but active. The CMA resolved 75 complaints during the year and carried out more than 300 supervisory actions, including warnings, notices and fines. Around Dh10.8 million was refunded to investors, while administrative fines totalled just over Dh8 million. The authority also processed more than 41,000 applications related to unclaimed dividends, disbursing nearly Dh240 million to investors.
A notable regulatory development in 2025 was the rapid expansion of oversight for virtual assets. The number of entities registered or licensed in the sector increased sharply,supported by closer coordination with Dubai’s virtual assets regulator and the rollout of a dedicated supervisory framework designed to balance innovation with financial stability.
International cooperation also strengthened, with the CMA expanding its network of memoranda of understanding to 166, reinforcing cross‑border regulatory alignment and positioning the UAE within the global financial ecosystem.
Source: khaleejtimes