UAE capital markets see 43% rise in licensed firms

By the Editorial Team · Wednesday, October 28, 2026

The United Arab Emirates experienced a 43 percent increase in licensed financial services companies and a 64 percent rise in licensed professionals during the first nine months of 2026, alongside a combined market capitalization exceeding $1 trillion for its main stock exchanges. This growth, supported by new regulations including a virtual assets framework, highlights the UAE's expanding and diversifying financial sector despite an overall economic contraction projected for 2026.

The United Arab Emirates has seen significant growth in its regulated financial services sector during the first nine months of 2026, with the number of companies licensed by the Capital Markets Authority increasing by 43 percent year on year. The number of licensed professionals working within the sector rose by an even larger margin of 64 percent over the same period.

This expansion is reflected in a combined market capitalization of 3.7 trillion dirhams ($1.01 trillion) for the Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM) as of September 30. Total trading value for the first three quarters of 2026 reached 408 billion dirhams, signaling strong market activity despite broader economic challenges.

The International Monetary Fund’s October 2026 World Economic Outlook projects a 3.9 percent contraction in the UAE’s economy this year, followed by a rebound with growth of 7.7 percent in 2027. Meanwhile, Fitch Ratings anticipates moderate growth in the country’s debt capital market through late 2026 and into 2027, driven by diversification in funding sources, cross-sector financing needs, and ongoing regulatory reforms.

Foreign investors accounted for 19 percent of the total trading value in the UAE’s markets, contributing to positive performances in key indices. Both the ADX and DFM general indices closed higher in September compared with the same month in 2025. Market volatility diminished in the third quarter, and bond and sukuk issuances in the first nine months amounted to 576 billion dirhams.

Investment funds based in the UAE increased substantially, with a 94 percent rise in the number of local funds to 97, accompanied by a 30 percent increase in assets under management, reaching 28.6 billion dirhams. Companies also increased their capital by 3.4 billion dirhams during the period. Additionally, the number of registered financial influencers shot up by 125 percent to 198.

Investor protection efforts intensified as well, with financial fines levied by the authority rising 246 percent year on year, and their total value increasing 23 percent to 12.9 million dirhams. Complaints handled by the regulator surged nearly threefold, resulting in the return of approximately 1.2 billion dirhams to clients, a significant increase from the 3 million dirhams recovered in the same period of 2025.

The Capital Markets Authority introduced six new regulatory instruments in the third quarter, including a comprehensive framework for virtual assets. It also registered 102 virtual assets during the period, reflecting the UAE’s advancing regulatory oversight amid the digital asset sector’s growth.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.