ABU DHABI: The UAE Capital Market Authority (CMA) recorded integrated regulatory performance in 2025, reflecting the strength of its legislative framework, the flexibility of its supervisory system, and growing confidence among domestic and international investors, reinforcing market depth and the UAE’s position as a regional and global financial hub.

According to the CMA’s 2025 annual report, issued Monday, financial markets recorded strong liquidity, with average daily trading reaching AED2.21 billion, marking a 24.16 percent increase compared to 2024.

Net foreign investment inflows totalled AED18.7 billion, including AED 14.1 billion in Abu Dhabi and AED 4.6 billion in Dubai, while net institutional investment reached AED 1.17 billion.

The market capitalisation of the Abu Dhabi Securities Exchange rose to AED 3.14 trillion, up 4.7 percent, while the Dubai Financial Market reached AED 0.98 trillion, marking growth of 7.6 percent.

Mohamed Ali Al Shorafa, Chairman of the CMA, said the UAE’s financial sector is undergoing a qualitative transformation where national vision intersects with the dynamism of global markets, noting that the Authority is developing an advanced regulatory environment that balances economic growth, financial stability and institutional confidence.

Waleed Saeed Al Awadhi, Chief Executive Officer, said 2025 marked an advanced milestone in the Authority’s journey, with efforts carried out under a strategic framework combining legislative development, enhanced supervisory efficiency and support for innovation to ensure sustainable growth and reinforce confidence in financial markets.

The report indicated strong momentum in issuance activity during 2025, with total equity listings in local markets reaching approximately AED 14.53 billion, including AED 7.29 billion through initial public offerings and AED 7.24 billion through direct listings, alongside AED 6.12 billion in capital increases.

The value of listed bonds and sukuk reached AED 27.6 billion, while bond and sukuk issuances through private placements totalled AED 638 billion. Green bonds and sukuk amounted to AED 8.6 billion.

During the year, four companies were listed and five public joint-stock companies registered, while three mergers and acquisitions were approved, bringing the total number of companies to 199 by year-end.

Local investment funds saw notable expansion, with the number of licensed funds reaching 37 in 2025 compared to 18 in 2024, representing growth of 106 percent. End-of-service gratuity savings funds totalled 13.

The total number of foreign investment funds registered with the Authority reached 158, in addition to 44 funds registered under passporting agreements and four foreign funds registered for listing purposes by the end of 2025.

The licensing sector recorded strong growth, with the total number of licensed companies reaching 244 and total licences issued standing at 602, including 252 new activities.

The Authority provided 259 legal consultations, reviewed 58 grievances, and obtained 12 ISO certifications.

It also strengthened its risk-based supervisory framework, conducting on-site inspections for 80 out of 84 targeted companies, assessing risks for 155 licensed firms, and organising 14 compliance workshops attended by 2,291 participants.

On enforcement, the Authority handled 75 complaints and took 324 supervisory actions, including 99 warnings, 82 alerts, 73 financial penalties and 44 referrals to the Public Prosecution, in addition to two trading suspensions and four directives.

The CMA also enhanced its international presence, with total memoranda of understanding reaching 166, including seven newly signed agreements. It held 52 bilateral international meetings, processed 65 requests from IOSCO members, and participated in 10 international conferences and meetings.

In terms of human capital, the Authority continued investing in national talent, with Emiratisation reaching 82.8 percent. The workforce totalled 169 employees, with women representing 42.8 percent and 9.1 percent of leadership positions.