The UAE’s capital markets watchdog started 2026 with sharper tools and a shorter fuse. If you missed our earlier coverage, federal decree laws introduced at the start of the month expanded the Capital Market Authority’s (CMA) remit, reinforcing its independence and giving it early-intervention powers to step in well before risks turn systemic.

Refresher: The reset raises the bar on governance, disclosure, and compliance. The CMA can now require recovery plans, impose additional capital or liquidity requirements, order management changes, or intervene directly as a resolution authority, with enforcement backed by fines of up to 10x net gains or losses avoided.

We sat down with Abeer Jarrar, partner at Baker McKenzie, to unpack how this regulatory reset is likely to play out in practice — and what investors, issuers, and intermediaries should be watching as the framework moves from statute book to supervision.

ENTERPRISEAM UAE: How actively do you expect the CMA’s early-intervention powers to be used in practice?

ABEER JARRAR: In the near term, selectively rather than aggressively. The initial focus is likely to be on supervisory engagement, data gathering, and remediation, particularly as the regulator builds institutional muscle under its expanded mandate.

Think of it as a behavioral shift: Firms with weak capital positions, governance gaps, or heightened systemic relevance should expect earlier regulatory engagement than under the previous regime.

ENTERPRISEAM UAE: Which industries, issuers, or transaction types are likely to face higher juridical or compliance costs as a result?

AJ: The impact will be felt most acutely by financial intermediaries (brokers, dealers, asset managers) given the expanded licensing perimeter, prudential oversight, and reporting expectations, and issuers accessing public or cross-border capital, where disclosure, market-abuse controls, and ongoing compliance requirements are materially higher.

In terms of transaction types: Complex or structured transactions, including IPOs, secondary offerings, and products with international investor participation, will require more detailed regulatory analysis and documentation.

Where the cost lands: For most, the cost increase will be front-loaded, driven by framework redesign and documentation updates — rather than permanent step-change in ongoing costs.

ENTERPRISEAM UAE: Where do you see the greatest uncertainty for international investors navigating the revised CMA framework?

AJ: The main uncertainty is how the framework will be applied in practice. For international investors, the UAE’s reforms are broadly positive and align with global standards. However, in the short term, they will require closer local regulatory engagement and more conservative structuring assumptions until practice becomes clearer.

Firms aren’t waiting: Larger issuers and financial institutions are already undertaking gap analyses and targeted updates, particularly around governance, risk oversight structures, and market-conduct and disclosure controls, driven by a recognition that the regulatory bar has been raised and future scrutiny will be higher.

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