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Category: News

ADGM Strengthens Position as MEASA's Leading IFC With 57% Growth in AUM and Over 13,000 Active Licences in Q1 2026

Abu Dhabi, May 2026 – Abu Dhabi Global Market (ADGM) kicked off Q1 2026 with record-breaking results. The hub saw Assets Under Management surge by 57%, while the number of active licences climbed past 13,353. This marks ADGM’s largest milestone to date, reflecting not just strong institutional inflows, but also growing confidence in its role as MEASA’s premier international financial centre. 

Key Highlights at a Glance

This quarter, ADGM reached 13,353 active licences, adding 961 new ones since the start of 2026. Assets Under Management jumped 57%, showing that investors are increasingly confident in the hub.

 

The centre now hosts 179 asset and fund managers, a notable 24% rise from last year. The number of funds managed climbed to 263, up 43%, while financial services entities reached 365, reflecting steady growth across the sector.

 

On the human side, 47,047 professionals are now part of the workforce, a 44% increase supporting the expanding operations. Meanwhile, 29 new Financial Services Permissions were granted, a 45% jump, highlighting faster regulatory approvals.

Asset Management Sector Leads the Surge

The asset management sector powered much of ADGM’s Q1 2026 growth. New entrants brought USD 4.4 trillion in Assets Under Management. That’s a huge boost of global expertise to the hub.

 

Big names like Capital Group, Man Group, Bain Capital, Barings, and Hillhouse Investment have set up shop, showing that ADGM is drawing serious institutional investors.

 

The market is also getting more diverse. It’s no longer just traditional funds. Hedge funds, private equity, venture capital, and digital assets are all part of the mix now. Firms like Rokos Capital, Hashed, and Polygreen Holdings have joined, highlighting ADGM’s growing reach in the region and beyond.

Business Licences Hit Record High

ADGM hit a big milestone in Q1 2026. There are now 13,353 active licences, the most in the MEASA region. That’s 2,783 more than a year ago, showing that businesses are putting their trust in Abu Dhabi as a base.

 

Even in March alone, new licences went up 5.2% from last year. To handle the growing activity, ADGM opened a new Service Centre at The Galleria, Al Maryah Island in February. At the same time, the Broker Classification Framework from the Registration Authority made rules clearer for financial services companies, helping operations run smoothly and transparently.

FSRA Approvals Accelerate

ADGM kept up the pace on regulatory approvals in Q1 2026. The centre issued 22 In-Principle Approvals and granted 29 new Financial Services Permissions (FSPs) — a 45% increase compared with last year.

 

These approvals show how efficient and strong ADGM’s regulatory framework is. Investors can trust the hub for compliance and operational readiness. What sets ADGM apart is its use of English Common Law, giving clear legal certainty and attracting top international financial firms.

Workforce Reaches 47,047

ADGM’s workforce jumped to 47,047 professionals in Q1 2026. That’s a 44% increase from the same period last year. The growth shows how quickly the centre is expanding and how much talent it needs.

 

The ADGM Academy played a key role, helping 441 UAE Nationals land jobs this quarter. This supports Emiratisation and builds a homegrown workforce ready for complex financial operations.

 

To meet the sector’s demands, the Academy introduced nine specialised tracks in areas like corporate finance, risk management, and investment operations. It also launched a new AML programme, giving staff the skills and confidence to handle regulatory challenges. 

 

By investing in training, local talent, and clear regulatory programs, ADGM keeps its workforce growing alongside licences, AUM, and financial services permissions. This focus strengthens operations and makes the hub a top centre of professional excellence in the MEASA region.

Global Outreach Expands

ADGM stepped up its global engagement in Q1 2026. The goal is clear: make Abu Dhabi a truly connected financial hub.

 

In China, ADGM signed a partnership with Shenzhen’s Futian District, opening new paths for cross-border investment. In India and Singapore, investment ties deepened, helping ADGM-licensed firms access new markets and share expertise.

 

In Europe, the ADGM Chairman held key meetings in Italy to bring in institutional investors and grow the network. In the United States, ADGM took part in the Milken Institute Global Conference 2026, meeting top firms like Bain Capital, Vista Equity, and Man Group. These moves show ADGM’s focus on building global connections and attracting major international capital.

 

These moves show ADGM’s focus on building strong international connections, bringing in capital, and strengthening its reputation as a trusted, globally integrated financial centre.

ADEPTS Take

ADGM’s growth is turning heads. It’s becoming a major hub in the region and beyond. Strong rules, modern infrastructure, and wide investment options make it easy for businesses and investors to trust. This expansion boosts confidence, supports smooth operations, and opens doors to global capital. Abu Dhabi is clearly leading the MEASA financial scene. 

ADGM’s “Capital of Capital” Vision Gains Momentum

ADGM started 2026 on a high note. Q1 performance smashed previous records. AUM soared, and active licences hit 13,353. The hub is proving it can attract top institutional investors.

 

The asset management ecosystem is growing. The workforce is expanding with skilled talent ready to drive innovation. ADGM is not just growing, it is building a world-class financial centre.

 

HE Ahmed Jasim Al Zaabi, Chairman of ADGM, said: “These results show our focus on creating a financial hub that sets international standards, fosters innovation, and drives Abu Dhabi’s long-term growth.”

 

For full details, the official press release can be accessed here.

References

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ADGM Publishes 2026 Update to Legal Persons and Arrangements Risk Assessment: What Every Regulated Entity Must Know

Abu Dhabi Global Market has released the ADGM LPA Risk Assessment 2026. It is a significant one. ADGM is growing fast. The number of Legal Persons and Arrangements registered in the financial centre rose from 7,173 in March 2024 to 12,302 by the end of March 2026. That is a 72% jump in two years.

 

Growth is good news. But in AML/CFT, growth also brings pressure. More entities mean more ownership layers. More cross-border links. More advisers. More company service providers. More files for regulators to question.

 

That is what this update is about.

 

The 2026 assessment gives ADGM a clearer view of money laundering and terrorist financing risks across its legal structures. It also comes at a key moment for the UAE. The country was removed from the FATF grey list in February 2024. It has since pushed ahead with its National AML/CFT/CPF Strategy 2024–2027. The next FATF-MENAFATF review cycle will look closely at whether these reforms are working in real life, not just on paper.

 

For regulated entities, this is not another report to save and forget.

 

The ADGM LPA Risk Assessment 2026 will shape how ADGM looks at licensing, monitoring, inspections, customer due diligence, enhanced due diligence, beneficial ownership checks and enforcement. Banks, company service providers, VASPs, DNFBPs and professional advisers dealing with ADGM structures should treat it as a live

What Is the ADGM LPA Risk Assessment and Why Does the 2026 Update Matter?

ADGM is the international financial centre of Abu Dhabi and operates under a legal framework based on the direct application of English Common Law. Its jurisdiction covers Al Maryah Island and Al Reem Island, and it hosts a wide range of legal structures, including companies, partnerships, foundations, trusts and professional services vehicles.

 

The term Legal Persons and Arrangements, or LPAs, refers to the legal structures available within ADGM. These include public and private companies, restricted scope companies, partnerships, branches, foundations, distributed ledger technology foundations and trusts. ADGM has stated that its legal framework encompasses 17 distinct legal persons and arrangement types, each with different features and different potential exposure to misuse.

 

The 2026 update revises the first ADGM LPA assessment issued in March 2024. The change is quite detailed in nature. 

 

ADGM has moved from a four-point to a five-point risk scale: Low, Medium-Low, Medium, Medium-High and High. This gives the Registration Authority more precision in distinguishing between structures that may previously have appeared similar on paper but carry different practical risks. ADGM has also made clear that some movements in risk ratings should be read as improved analytical granularity rather than evidence of a worsening risk environment.

 

The timing matters. UAE Federal Decree-Law No. 10 of 2025 has modernised the country’s AML/CFT and proliferation financing framework, with express references to virtual assets, digital systems, supervisory authorities, DNFBPs and VASPs. The law also reinforces the role of national risk assessment, supervision and coordination across competent authorities.

 

This gives the ADGM update a wider significance. It is not just an ADGM registry exercise. It is part of the UAE’s broader move from “having controls” to proving that those controls work in practice.

What the 2026 Assessment Found: Key Findings Explained

The 2026 update does not suggest that ADGM’s risk environment has suddenly deteriorated. Instead, it gives a more detailed picture of where risks sit, how existing controls are working, and which areas are likely to receive closer regulatory attention. 

Overall ML/TF Risk Profile Remains Broadly Stable

ADGM’s headline finding is reassuring: the overall money laundering and terrorist financing risk profile of ADGM LPAs remains broadly stable compared with the 2024 assessment. That stability, however, comes with a sharper methodology and a more demanding supervisory lens.

 

The updated assessment weighs threats, inherent vulnerabilities, probability of misuse and mitigants. In plain English, ADGM is not asking only whether a structure can be abused. It is asking how likely that abuse is, how serious it could be, and whether the controls around the structure are strong enough. That is a more mature regulatory test. 

 

It also means entities cannot rely on a “low-risk by default” assumption simply because they are established in a reputable financial centre.

 

Private Companies Limited by Shares and General Foundations are rated Medium-High in the 2026 assessment. Trusts, Restricted Scope Companies, Branches of Foreign Companies, General Partnerships and Limited Partnerships are rated Medium. Public Companies Limited by Shares remain Low.

Beneficial Ownership Transparency Strengthened

Beneficial ownership is one of the clearest themes running through the ADGM LPA Risk Assessment 2026. ADGM already treats beneficial ownership identification and verification as an integral part of the application review process for registering legal entities. Applicable entities must maintain beneficial ownership records and notify the Registrar of changes.

 

For companies and LLPs, ADGM’s beneficial ownership framework looks at persons with 25% or more direct or indirect ownership or voting rights, as well as natural persons who otherwise control the company or LLP. Where no such person is identified, the officer test may apply.

 

This is where the practical risk sits. In a fast-growing jurisdiction, beneficial ownership records can become stale quickly. Ownership chains change, nominee arrangements are introduced, trusts or foundations are added, and cross-border holding structures become more layered. 

 

The paperwork may still look tidy, but the real question is whether the entity can evidence who ultimately owns, controls and benefits from the structure today, not last year, not at incorporation, and certainly not “as per the old chart in the folder”.

Gatekeeper Supervision Tightened

ADGM’s report places renewed emphasis on gatekeepers, including company service providers and professional advisers. That matters because legal entities are rarely misused in isolation. Someone incorporates them, maintains them, advises them, files for them, manages them or introduces them to financial institutions.

 

The 2026 assessment refers to strengthened company service provider supervision, improved gatekeeper controls, increased inspection activity and better beneficial ownership transparency as mitigants that help offset higher threat inputs from the national risk picture.

 

For CSPs, lawyers, accountants and other professional advisers, this is the part of the report that deserves a yellow highlighter. FATF expectations around DNFBP supervision and gatekeeper accountability are now firmly embedded in the UAE’s regulatory direction. The compliance burden is no longer limited to onboarding forms. 

 

Regulators increasingly expect professionals to understand the purpose of structures, identify red flags, challenge inconsistent information and maintain evidence of their risk-based decisions.

Inspection Activity Increased

The ADGM update confirms that the findings will support inspection planning, thematic supervisory work and targeted enforcement activity where indicators warrant action. That is a direct signal to the market: the report will not sit on a shelf. It will influence who gets inspected, what inspectors ask for, and how supervisors prioritise risk.

 

For 2025–2026, entities should expect particular scrutiny where structures involve layered ownership, foreign shareholders, nominee arrangements, high-risk jurisdictions, virtual assets, private wealth vehicles, foundations, trusts or limited operational substance. None of these factors automatically indicate wrongdoing. But they do invite better documentation, stronger rationale and cleaner evidence.

 

The practical standard is moving from “do we have a policy?” to “can we prove the policy worked on this file?” That is usually where compliance programmes either stand up or start sweating.

Enforcement Tools Expanded

The 2026 assessment also refers to expanded enforcement tools as part of the strengthened mitigants within ADGM. This aligns with the broader UAE AML/CFT framework, including Federal Decree-Law No. 10 of 2025 and Cabinet Decision No. 134 of 2025. The Central Bank of the UAE identifies the new AML/CFT Law and its implementing regulation as part of the UAE’s core federal AML/CFT framework.

 

The new federal framework expressly includes virtual asset service providers within the scope of supervisory attention and national AML/CFT coordination. It also gives the UAE Financial Intelligence Unit, supervisory authorities and national committees a stronger role in information exchange, supervision, risk assessment and enforcement coordination.

 

For ADGM entities, this means enforcement risk should be assessed across the full lifecycle of the structure: incorporation, licensing, ownership changes, annual filings, commercial activity, banking relationships, suspicious activity reporting and deregistration. The days of “we updated it eventually” are becoming expensive days.

How ADGM Uses This Assessment in Day-to-Day Regulation

ADGM has made the operational use of the report very clear. The findings will inform incorporation and commercial licensing applications, ongoing monitoring and risk reviews of existing entities, inspection planning, thematic reviews and targeted enforcement activity.

 

For new applications, this means the Registration Authority may apply greater scrutiny to structures with elevated risk features. Applicants should expect more questions around beneficial ownership, source of wealth, business purpose, governance, nominee arrangements and the rationale for using a particular ADGM vehicle.

 

For existing entities, the report is equally important. ADGM’s monitoring will not be limited to newly incorporated entities. Existing LPAs may be reviewed against the updated risk framework, especially where their structure, ownership, business activity or filings suggest a higher risk profile.

 

For financial institutions, VASPs, CSPs and DNFBPs, the report should feed into customer risk assessment. A bank dealing with an ADGM foundation, for example, should not treat that structure in exactly the same way as a listed public company. 

 

A CSP managing a private company with foreign ownership layers should be able to explain its CDD and EDD decisions. A professional adviser assisting with restructuring should consider whether beneficial ownership records, control arrangements and registry filings remain accurate.

The Bigger Regulatory Picture - Why This Goes Beyond ADGM

The UAE’s removal from the FATF grey list in February 2024 was an important milestone, but it was not the end of the story. FATF stated at the time that the UAE had made significant progress, including in risk-based supervision, DNFBP oversight, suspicious transaction reporting, legal person misuse risk, FIU resources, money laundering investigations and sanctions implementation. 

 

FATF also said the UAE should continue working with MENAFATF to sustain improvements.

 

That final word – sustain – is doing a lot of work. International assessors are less impressed by one-off reforms and more interested in evidence that systems are operating consistently. The UAE’s National AML/CFT/CPF Strategy 2024–2027 reflects that shift. 

 

The strategy focuses on risk-based compliance, effectiveness, sustainability, supervision, beneficial ownership transparency, financial data, asset recovery and emerging risks, including virtual assets and cybercrime.

 

The FATF global assessment calendar shows the UAE scheduled for the next round of mutual evaluations by FATF-MENAFATF, with a possible onsite period in June 2026 and possible plenary discussion in February 2027.

 

Seen in that context, the ADGM LPA Risk Assessment 2026 is part of a national effectiveness story. ADGM is demonstrating that it understands the risks within its own ecosystem, can distinguish between different legal structures, and can translate that understanding into supervision, monitoring and enforcement.

What ADGM-Registered Entities Must Do Right Now

ADGM-registered entities should begin with a practical review of their legal structure, beneficial ownership record and control arrangements. 

 

The first question is simple: does the current registry information match the real ownership and control position today? If there has been any change in shareholders, voting rights, control rights, nominee arrangements, directors, foundation officials, trustees or beneficiaries, the entity should verify whether filings and internal registers are fully updated.

 

The second step is to revisit the entity’s AML/CFT risk classification. A structure that was treated as low risk in 2024 may need a fresh assessment under the 2026 framework, especially if it is a private company, foundation, trust, partnership or branch with cross-border elements. The review should consider ownership complexity, jurisdictions involved, business activity, source of funds, source of wealth, expected transactions, customer profile and reliance on professional intermediaries.

 

The third step is evidence. ADGM and other UAE regulators are increasingly focused on proof. Board minutes, ownership charts, CDD files, EDD approvals, screening results, registry filings, risk assessment worksheets and correspondence with CSPs should all tell the same story. If the file needs a tour guide to explain it, the file needs work.

 

Entities using ADGM structures for group holding, succession planning or private wealth purposes should also revisit their commercial rationale and documentation. For broader structuring context, ADEPTS’ Holding Company Guide can help entities think through governance, ownership and substance considerations. Groups comparing free zone structures may also refer to ADEPTS’ DIFC Performance insights for a wider UAE financial-centre perspective.

How ADEPTS Helps Entities Navigate the 2026 LPA Risk Framework

ADEPTS supports ADGM-registered entities, regulated firms, CSPs and professional service providers in translating the ADGM LPA Risk Assessment 2026 into practical compliance action. This includes reviewing beneficial ownership records, updating AML/CFT policies, preparing customer risk assessment frameworks, conducting gap analyses, drafting enhanced due diligence procedures and supporting internal compliance audits.

 

ADEPTS also assists entities in preparing for regulatory inspections by reviewing files from a supervisor’s perspective. The focus is not only whether a document exists, but whether the document is current, consistent, defensible and aligned with the entity’s actual risk profile. That distinction matters. A polished policy with weak execution is still a weak control — just wearing a better suit.

 

For entities dealing with foundations, trusts, private companies, VASPs, DNFBPs or complex ownership chains, ADEPTS can support registry update reviews, compliance remediation plans, AML/CFT training, governance documentation and regulatory audit readiness. For legal interpretation and entity-specific advice, clients should obtain support through ADEPTS’ Legal Counseling in UAE and Dubai.

Disclaimer

This article is for general informational purposes only and reflects the ADGM assessment and related regulatory materials available as of May 2026. It should not be treated as legal advice or as a substitute for advice on any specific entity, structure or transaction. For tailored support, visit ADEPTS’ Legal Counseling in UAE and Dubai.

References

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DFSA’s CP172: What the New Islamic Finance Consultation Means for DIFC Firms in 2026

On May 5, 2026, the Dubai Financial Services Authority (DFSA) made a big move by launching Consultation Paper 172 (CP172). It is a very significant move which will reshape how Islamic finance is regulated in the Dubai International Financial Centre (DIFC). This public consultation focuses on clarifying and improving some key aspects of the existing framework. 

 

What’s up for discussion? Three main changes:

  1. Clearer endorsement rules – when will firms need an official stamp of approval for Islamic finance activities?

  2. Tighter Takaful disclosures – ensuring customers understand exactly what they’re getting into when they sign up for Islamic insurance.

  3. Updates to the Islamic Finance Rules (IFR) – tweaks to keep the rules in line with how the market is evolving.

These updates are about more than just ticking boxes. They’re about the bigger picture: making the UAE the global leader in Islamic finance, pushing the national agenda for Halal industry growth, and backing Dubai’s D33 Economic Vision.

 

What’s the deadline?

 

You’ve got until June 19, 2026 to weigh in through the DFSA’s online portal. If you’ve got something to say, now’s your chance to make it count.

What Is the DFSA? Understanding the Regulator Behind CP172

It is the Dubai Financial Services Authority – the regulatory body that oversees all financial activities within DIFC. This includes everything from banking and insurance to Sukuk (Islamic bonds) and crowdfunding. Essentially, if you’re doing finance in DIFC, you’re under their watchful eye.

 

Here’s the key point: The DFSA doesn’t tell you whether a financial product is Shari’a-compliant – that’s not their job. What they do is make sure that firms operating within the DIFC have robust systems to ensure that their business activities adhere to Shari’a principles. They want to make sure that firms have the proper governance and controls in place to manage Islamic finance risks, rather than judging the products themselves.

 

Well, it means that the DFSA is focused on how you manage compliance, not on determining whether your products are halal. It’s about ensuring firms operate in line with Islamic finance rules, with clear frameworks to avoid any missteps.

What Is Islamic Finance? A Quick Primer for Non-Specialists

Now, let’s take a quick detour and talk about Islamic finance for a moment. If you’re new to this world, here’s the basic idea:

 

Islamic finance is financial activity that follows Shari’a law. Some key points you should know about Shari’a are:

  • No interest (Riba): Charging interest on loans is forbidden.
  • No uncertainty (Gharar): Too much uncertainty in contracts isn’t allowed.
  • No investments in forbidden sectors: Think alcohol, gambling, and arms — all off-limits.

So, how does it actually work? The big players in Islamic finance are:

  • Sukuk: These are bonds, but not the traditional ones that charge interest. They’re tied to real assets and work on a profit-sharing basis.

  • Takaful: Think of it as Islamic insurance, but with a twist. Instead of a traditional insurer, the risk is shared among participants.

  • Murabaha, Ijara, Musharaka: These are types of Shari’a-compliant financing structures, where profits are shared, and risk is distributed in a way that aligns with Islamic values.

Islamic finance isn’t just for Muslim-majority countries anymore. Thanks to its focus on ethics and social responsibility, it’s become a global phenomenon, especially as investors look for more sustainable, ESG-aligned investment opportunities. The UAE, and specifically DIFC, has positioned itself as a global Islamic finance hub, drawing international investors looking for Shari’a-compliant products.

Breaking Down CP172 - The Three Core Proposals

So, what’s actually changing with CP172? Let’s break it down:

1. Clarity on Islamic Endorsement Requirements

For a long time, it’s been a bit of a grey area, when do firms actually need to have an Islamic endorsement? CP172 clears this up by specifying when firms will need official approval to conduct Islamic finance business. Here’s the rule of thumb:

  • Yes, you need an endorsement if you’re marketing your products as Islamic or Shari’a-compliant.

  • No, you don’t need one if you’re simply distributing these products without making any claims about their Shari’a compliance.

This proposal gives firms clear guidelines on when they need to be officially endorsed — making it easier to operate with confidence.

2. Strengthened Takaful Disclosures

Takaful is Islamic insurance, and right now, customers don’t always have full visibility into what they’re signing up for. To address this, CP172 proposes that all Takaful products must come with clear disclosures on:

  • How the contract works.
  • How fees are calculated.
  • How surplus is shared among participants.
  • Whether any additional contributions are needed.

It’s all about ensuring that customers know exactly what they’re getting into, especially as the UAE’s Takaful market continues to grow.

3. Technical Amendments to IFR Module

The Islamic Finance Rules (IFR) module is getting a few updates to better reflect how the market has evolved. The DFSA is tightening up some areas based on industry feedback, ensuring that the rules stay relevant and practical for firms in the DIFC.

What Is an Islamic Endorsement and Who Needs One?

Now, let’s get into what might be the most important part of CP172 for a lot of firms: the Islamic endorsement. This is where things are getting clearer for everyone. Here’s the lowdown:

 

An Islamic endorsement is essentially a stamp of approval from the DFSA, saying that a firm can officially call itself an Islamic finance business within the DIFC. Think of it as a badge that says, “Yep, we’re doing things by the book – the Shari’a book.”

 

Without this endorsement? Well, a firm can’t market itself as offering Shari’a-compliant services or products. It’s that simple. If you’re doing Islamic finance business, this endorsement is crucial to stay compliant with the DFSA’s rules.

 

So, how do you get one?
You need to prove that you’ve got the right structure in place. This means:

  • A Shari’a Supervisory Board (SSB) that oversees and ensures everything you do is in line with Islamic principles.
  • An internal Shari’a audit process to keep things in check.
  • Solid governance systems to manage risks tied to Islamic finance activities.

Now, CP172 is adding three clear triggers to this process — making it easier for firms to figure out if they need that endorsement. These triggers include:

  1. Firms that explicitly advertise themselves as Shari’a-compliant.
  2. Firms that offer Islamic products, whether it’s banking services, insurance, or investments, and claim they follow Shari’a principles.
  3. Fund managers that run funds marketed as Islamic.

For anyone who isn’t clear about whether they need an endorsement or not, these rules will finally take the guesswork out of the equation.

And if you don’t need an endorsement?

That’s good news too. You’ll still need to follow certain rules, especially around client protection, but you won’t have to go through the formal endorsement process. CP172 really helps clarify who needs to be in the spotlight and who doesn’t.

Takaful in the UAE - Why Stronger Disclosures Matter Now

Let’s talk Takaful – which is, simply put, the Islamic alternative to insurance. But here’s the thing: Takaful products have always been a bit of a mystery for some consumers. And that’s where CP172 comes in, with proposals that’ll give customers much more transparency before they sign on the dotted line.

 

You see, Takaful is based on mutual cooperation – participants come together, contribute to a pool, and share the risk. But the downside for consumers has been uncertainty. How much will I be paying in fees? What happens if there’s a surplus? Will I need to pay more later?

 

CP172 wants to make sure everyone knows exactly what they’re signing up for. Under the new rules, firms will be required to disclose four key things when selling Takaful:

  1. Contract features – What’s included and what’s not?

  2. Fee calculation methods – How are you being charged, and why?

  3. Surplus-sharing arrangements – How’s the extra money being handled?

  4. Any additional contributions – Are there costs that might pop up later?

Takaful, which is already a $200 million industry in the UAE, is growing fast. With more people opting for Shari’a-compliant insurance, consumers need to know exactly what they’re buying. If they don’t understand their coverage, the risks are higher, and that’s bad news for everyone.

UAE Islamic Finance Today - Numbers That Tell the Full Story

Let’s take a step back and see where the UAE’s Islamic finance sector stands today. The numbers tell a compelling story.

 

In 2026, Islamic banking assets in the UAE reached AED 1.15 trillion — that’s 25% of the country’s total banking system.

 

The Islamic Finance Development Indicator (IFDI) ranks the UAE 4th globally by assets and 3rd by financial performance.

 

The DIFC now hosts over $100 billion in Sukuk listings, and that figure’s climbing fast.

 

In 2025, global Sukuk issuance hit $264.8 billion, and projections for 2026 are up to $270-280 billion.

 

The UAE is now the second-largest Sukuk issuer globally, with plans to grow Islamic banking assets to AED 2.56 trillion by 2031.

 

Islamic finance isn’t a niche anymore. It’s mainstream. And the UAE is leading the way, pulling in global capital from investors eager for Shari’a-compliant opportunities.

What Does This Mean for Your DIFC Firm? Practical Impact

So, let’s get down to the nitty-gritty: What does all of this mean for your DIFC-based firm? If you’re in Islamic finance, there are a few practical steps you need to take in response to CP172:

  • If you’re already operating as an Islamic financial business, check whether you need an endorsement under the new rules.

  • If you distribute Islamic products, you may not need an endorsement, but make sure you’re following all the client protection rules to avoid any trouble.

  • If you sell Takaful, you’ll need to implement the new disclosure requirements right away. It’s all about making things clearer for your customers.

  • If you manage Islamic funds, make sure the endorsement requirement is clear — and get your firm ready to meet the DFSA’s expectations.

Compliance teams should start reviewing the changes to the Islamic Finance Rules as soon as the final version is published. Legal teams should map out how current client-facing language matches up to the new endorsement triggers. And if you’re in operations, you’ll need to get the new Takaful disclosure templates up and running, and fast.

Consultation Deadline and How to Participate

Don’t forget, the feedback deadline for CP172 is June 19, 2026.


Who can submit? Anyone – Authorised Firms, Market Institutions, professional advisers, and even those just interested in the industry.

 

The DFSA is genuinely looking for industry feedback to shape the final rules. It’s not just a formality, your thoughts matter.

 

So, if you’ve got something to say, head over to the DFSA’s online response form and get your comments in before the clock runs out.

How ADEPTS Can Help

At ADEPTS, we’re here to help DIFC-registered firms navigate these changes. Whether you need a Shari’a endorsement eligibility check, help with Takaful disclosures, or an IFR gap analysis, we’ve got you covered. We can also help you draft your response for the CP172 consultation, ensuring that your firm is positioned for compliance in this evolving regulatory environment.

Conclusion

The proposed changes in CP172 are a huge step forward for the Islamic finance sector in the DIFC. They offer the clarity that many firms have been waiting for. The UAE is well on its way to becoming a global leader in Islamic finance, and the DIFC is right at the heart of it.

 

So, take action now. With the deadline fast approaching, make sure your firm is prepared for these regulatory changes and ready to thrive in the next phase of Islamic finance.

References

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ADGM Registration Authority Publishes Amendments to Commercial Legislation — What Every Business Must Know (May 2026)

ADGM RA: 01 May 2026

 

The ADGM Registration Authority has published amendments to its commercial legislation. The changes are technical. But their direction is clear. They tighten the framework in key areas. They also bring ADGM closer to current international expectations on transparency, beneficial ownership, and anti-money laundering controls.

 

For ADGM businesses, this is not routine housekeeping. It is a focused regulatory update. It touches legal structures, filing discipline, and ownership transparency. In short, it is the kind of update that looks narrow on paper but has wider practical consequences once you start reviewing actual entities and documents.

What Is the ADGM Registration Authority - and Why Do These Amendments Matter?

ADGM was established under Abu Dhabi Law No. 4 of 2013. It operates under a common law framework. Within that system, the Registration Authority is a core gatekeeper for non-financial entities. It oversees incorporation, registration, licensing, and related compliance matters inside the jurisdiction.

 

That role matters even more today because ADGM is operating at a much larger scale than before. In March 2026, ADGM said active licences had reached 12,671 by the end of 2025. That growth changes the compliance picture. As a jurisdiction expands, the pressure to remove ambiguity and strengthen supervision also increases.

 

The timing is also important. The UAE is now in a more mature AML/CFT phase. FATF removed the UAE from increased monitoring in February 2024. FATF’s assessment calendar now shows a possible onsite period for the UAE in June 2026. At the same time, the UAE has updated its federal AML framework through Federal Decree-Law No. 10 of 2025 and its Executive Regulations. ADGM’s latest amendments sit within that wider push for stronger and more visible compliance.

The Four Key Changes - Breaking Down Each Amendment

Here are the four main amendments to take note of:

1. Restrictions on Non-Profit Activities for Foundations and Trusts

One of the clearest changes is this: foundations and trusts can no longer be set up for purposes that fall within ADGM’s definition of non-profit organisations under its AML framework. ADGM states that point directly in its announcement.

 

This matters because non-profit structures remain a sensitive area in global AML/CFT supervision. FATF Recommendation 8 focuses on protecting the non-profit sector from terrorist financing abuse. That does not mean every such structure is suspicious. It means regulators want sharper lines around legal purpose, governance, and risk. ADGM has now drawn that line more clearly within its own framework.

 

For existing foundations and trusts, this means the review should be real. Not cosmetic. The stated objects, purpose clauses, and actual use of the structure should all be checked carefully against the revised position.

2. Clearer Beneficial Ownership Requirements for Trustees

The second amendment deals with beneficial ownership. More specifically, it clarifies and streamlines certain trust-related obligations under the Beneficial Ownership and Control Regulations 2022.

 

That may sound modest. It is not. Beneficial ownership is one of the main pressure points in modern compliance. Regulators no longer want records that are technically available but practically weak. They want information that is current, documented, and capable of showing who really owns, controls, or benefits from the arrangement.

 

In trust structures, that becomes even more important. The parties are often layered. Control may sit in several places. The legal form can look clean while the practical reality is more complicated. ADGM’s amendment is a reminder that trustees must maintain robust records, not just basic files that looked acceptable at onboarding.

3. No Bearer Shares Permitted — Express Prohibition

ADGM has also made the bearer share position explicit. Under the amended Companies Regulations 2020, bearer shares are not permitted.

 

Why does that matter? Because bearer shares undermine traceability. Ownership follows possession of the certificate. That makes them a long-standing red flag in beneficial ownership and AML discussions. Modern transparency frameworks do not have much patience for instruments built around anonymity. ADGM has now removed any lingering doubt on that point.

 

For ADGM companies, the response should be straightforward. Confirm that no bearer shares have been issued. Check that no legacy documents leave room for them. And make sure future share structuring stays fully within registered-share principles.

4. Clearer Filing Deadlines for Greater Regulatory Clarity

The final major change concerns filing deadlines. ADGM says certain deadlines have been updated to provide greater clarity under the Companies Regulations and related rules.

 

This may look less dramatic than the ownership and trust changes. In practice, it can have just as much impact. Filing failures often happen because dates are misunderstood, not because a business intended to ignore them. Clearer deadlines reduce that grey area. They also make enforcement easier.

 

That last point matters. In October 2025, ADGM introduced the Administrative Regulations 2025 and described them as a framework for procedural fairness, contraventions, and fines. So when filing timelines become clearer, they also become harder to excuse.

Full List of Regulations and Rules Amended

According to ADGM’s 1 May 2026 announcement, the amendments affect the following instruments:

  • The Distributed Ledger Technology Foundations Regulations 2023
  • Foundations Regulations 2017
  • Trusts (Special Provisions) Regulations 2016
  • Beneficial Ownership and Control Regulations 2022
  • Administrative Regulations 2025
  • Companies Regulations 2020

ADGM also said that the Commercial Licensing Regulations (Conditions of Licence and Branch Registration) Rules 2025(B) were repealed and replaced by the 2026 Rules.

 

The changes took effect upon publication on 1 May 2026. Readers who want the full legal text should use ADGM’s official legislation portal.

Why These Amendments - The Bigger Regulatory Picture

These changes make more sense when read as part of a broader pattern. The UAE is no longer in the phase of simply passing laws to show progress. It is now in the phase of showing that those laws work in practice. That is a different kind of pressure. It means more attention on legal persons, trusts, non-profit risk, beneficial ownership integrity, and the quality of records held by regulated and supervised parties.

 

That is also why the ADGM commercial legislation amendments 2026 matter beyond ADGM itself. They reflect the same themes now visible across the UAE and globally. Less opacity. Less room for vague structuring. More expectation that businesses can explain their ownership, purpose, and filings clearly when asked.

What ADGM-Registered Entities Must Do Right Now

The immediate priority is review.

 

Foundations and trusts should revisit their purpose clauses and constitutional documents. Trustees should test whether beneficial ownership records are complete and current. Companies should confirm that no bearer shares exist, whether in practice or in old documentation. All ADGM entities should also update their statutory calendars and internal compliance trackers to reflect the revised filing deadlines.

 

This is also the time to align internal teams with external service providers. In many cases, the problem is not the law itself. It is the gap between legal documents, governance records, and the people responsible for keeping them up to date. That gap is where compliance issues usually begin.

How ADEPTS Helps ADGM Businesses Navigate These Changes

ADEPTS supports ADGM businesses in turning regulatory change into practical action.

 

That includes reviewing foundations and trusts against current AML-sensitive restrictions, assessing beneficial ownership records, checking governance documents, and helping entities update their filing approach in line with the latest rules. For businesses using ADGM as part of a holding, investment, or cross-border structure, this kind of review is especially important. Often, the amendment is not the real problem. The real problem is the weakness it exposes.

 

ADEPTS helps businesses identify that weakness early and address it before it becomes a regulatory issue.

 

Businesses seeking support on ADGM bearer shares prohibition, ADGM foundations AML rules 2026, ADGM beneficial ownership trustees, or the ADGM filing deadlines update should consider a focused compliance review.

 

Disclaimer: This article is for general informational purposes only. It reflects the ADGM Registration Authority amendments published on 1 May 2026. It does not constitute legal, regulatory, or compliance advice. Professional advice should be obtained based on the specific facts of each case.

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CBUAE Emiratisation 2025 Results: UAE Banking & Finance Sector Hits 160% of Target - What It Means for Your Business

The Central Bank of the UAE has released its 2025 Emiratisation results. The outcome is not incremental. It is decisive.

 

The banking, financial, and insurance sectors have collectively achieved 160% of their annual Emiratisation target. More importantly, the cumulative hiring target set for the entire 2022–2027 period has already been exceeded a full two years ahead of schedule.

 

It is a clear signal of policy acceleration.

 

Emiratisation in the financial sector is moving from target-setting to target enforcement. From workforce expansion to workforce composition. From compliance as a requirement to compliance as a measurable operating standard.

 

For institutions operating in the UAE, the implications are immediate. The baseline has shifted. Expectations have increased. And the margin for reactive compliance is narrowing. The question is no longer whether your organisation meets current thresholds.

 

It is whether your workforce strategy is aligned with where regulation is heading next.

What the CBUAE Just Announced

On 22 April 2026, the Central Bank of the UAE released its latest Emiratisation progress update from Abu Dhabi.

 

The announcement was issued under the directives of His Highness Sheikh Mansour bin Zayed Al Nahyan. That matters. It tells you this is not just regulatory reporting. It is policy at the highest level.

 

Scope is broad. Everything is included – banking. Financial institutions. Insurance. Targets are being exceeded. Which means expectations will rise. This report gives an insight into the future. It is a forward signal for 2026 and 2027. More scrutiny. Higher benchmarks. Less tolerance for delay.

Key Numbers at a Glance - 2025 Results

The headline figures are strong. But look closer. They carry weight.

  • Total UAE nationals employed (Dec 2025): 23,364
  • Overall Emiratisation rate: 31%
  • UAE nationals hired in 2025 alone: 2,901
  • Annual target for 2025: 1,816
  • Achievement vs target: ~160%
  • Cumulative 2022–2027 target: 10,300 jobs
  • Actual hiring by Dec 2025: 10,780
  • Compliance rate across institutions: 97%

These numbers are not just impressive. They are directional.

 

They tell you the UAE is treating financial sector Emiratisation rate as a structural policy. It is definitely not a temporary initiative. Serious efforts have been made at national level. Progress is being meticulously measured. Tracked. Enforced.

Sector-by-Sector Breakdown

Banking Sector - The Core Driver

Banking is carrying the weight. And setting the pace.

  • Share of total Emiratisation: 67%
  • Growth: 32% to 41% (2022–2025)
  • 2026 target: 45%

Now look inside the sector.

  • Critical roles: 31% to 41% (target 45% by 2026)
  • Leadership roles: 17% to 28% (target 30%)
  • Voting committees: 15% to 31% (target already met)

This is not just hiring. This is repositioning Emirati talent into decision-making layers.

 

That changes governance. Not just headcount.

Insurance Companies

  • Share: 13%
  • Growth: 15% to 27% (2022–2025)
  • 2026 target: 30%

Insurance is catching up fast. But still under pressure to close the final gap.

Exchange Houses

  • Share: 15%
  • Growth: 14% to 24% (2023–2025)
  • 2027 target: 30%

This segment has time. But not much.

Finance Companies

  • Share: 1%
  • Growth: 14% to 27% (2023–2025)
  • 2027 target: 30%

Small share. Fast movement. Expect closer monitoring here.

Insurance-Related Professions

  • Share: 4%
  • Growth: 2% to 10%
  • Target: already achieved

This is what early compliance looks like. Others will be expected to follow.

Major Initiatives Driving Emiratisation

Here are the major initiatives that demand attention:

Al Ain Initiative

Five banks committed to hiring 1,700 UAE nationals across 2025 and 2026.

 

By December 2025, 1,016 hires were already completed.

 

That is roughly 60% delivered in year one.

Remote Areas Initiative

This one is strategic. Led by the Emirates Council for Balanced Development and the Government of Fujairah.

 

Target: 500 jobs between 2025 and 2027

 

Focus areas include:

  • Al Dhafra and Al Sila
  • Al Shuwaib
  • Masfout
  • Al Rams
  • Qidfa and Mirbah

By the end of 2025, 120 hires were completed.

Training and Qualification - Building the Talent Pipeline

Hiring alone does not get you to 45%. Trained employees are needed. The government knew this. 

 

In 2025:

  • 17,338 UAE nationals trained
  • That is 46% of total trainees

The Ethraa programme UAE is central here.

  • ~5,500 graduates between 2022 and 2025
  • 2,396 placements through 2025 career fairs

Then there is specialization.

 

The Actuarial Expert Programme:

  • 17 students via Higher Colleges of Technology
  • 29 via international scholarships across the US, Canada, and Australia

And the institutional backbone: The Emirates Institute of Finance.

 

It offers 25 certifications, including:

  • CAMS for anti-money laundering
  • CFA for investment professionals
  • CIA for internal audit
  • CISI for securities and investment
  • Multiple AML, compliance, and insurance tracks

This is long-term capacity building. Not short-term hiring.

What These Targets Mean for Your Business in 2026

Now bring it back to your position.

 

If you are in banking, your CBUAE Emiratisation target 2026 is 45%. But the number alone is not the real challenge.

 

The shift is happening inside the composition of that percentage.

 

The Central Bank is not just looking at total headcount anymore. It is tracking where Emirati employees sit. Critical roles. Revenue-linked functions. Risk. Compliance. Leadership. Governance committees.

 

That changes how you plan.

 

You cannot rely on entry-level hiring to close the gap. You need progression pipelines. Internal mobility. Structured training tied to actual business functions.

 

That takes time. And budget.

 

If you are in insurance, moving from 27% to 30% sounds incremental. It is not. The last few percentage points are always the hardest. Because you are no longer filling obvious gaps. You are restructuring roles.

 

For exchange houses and finance companies, the 2027 target of 30% may look distant. It is not.

 

Think in cycles:

  • Hiring cycles
  • Training cycles
  • Promotion timelines
  • Regulatory reporting periods

Miss one cycle, and the gap compounds. Also consider this. With overall sector hiring already exceeding the 2022–2027 cumulative target, the baseline has shifted upward. Future targets are unlikely to stay static.

 

So the real question is not “Are you compliant today?” It is: “Are you structurally aligned for what comes next?” Because compliance is no longer a one-time adjustment. It is an ongoing operating model.

Non-Compliance Risks - The 3% You Do Not Want to Be

A 97% compliance rate sounds reassuring. It should not. It means the regulator has clear visibility on the remaining 3%. And that group is small enough to monitor closely.

 

The Central Bank’s approach has evolved. This is not passive oversight. It is active supervision. Emiratisation KPIs are tracked alongside broader prudential and operational metrics. That means performance in this area feeds into your overall regulatory profile.

 

If you fall short, the risk is not limited to a warning.

 

It can escalate through layers:

  • Increased reporting requirements
  • Targeted reviews of hiring and HR practices
  • Closer inspection of governance structures
  • Delays or complications in approvals for expansion, licensing, or new activities

There is also the reputational layer.

 

In a market where Emiratisation is tied to national policy, falling behind is not just a compliance issue. It becomes a signalling issue. Internally. Externally. To regulators, partners, and stakeholders.

 

And here is where many institutions get it wrong. They treat Emiratisation as an HR metric. It is not.

 

It sits at the intersection of regulation, governance, and strategy. So when non-compliance happens, the conversation does not stay within HR. It moves upward. Quickly. Exact enforcement actions will vary. They are case-specific and depend on severity, intent, and responsiveness.

 

But the direction is clear. Tolerance is narrowing. Expectations are rising. And visibility is already in place. That 3% is not a comfortable place to be.

How ADEPTS Can Help Your Business Stay Compliant

This is where structure matters. That is where ADEPTS comes in. We work with financial institutions that need clarity. Not assumptions.

 

We help with:

  • Emiratisation compliance UAE assessments
  • Workforce planning aligned with 2026 and 2027 targets
  • HR policy reviews tied to regulatory expectations
  • Strategic hiring models based on role classification

We do not just tell you the target. We map how you reach it. Without disruption.

Conclusion

The direction is clear. Emiratisation across the UAE financial sector is not slowing. It is accelerating. The 160% achievement in 2025 is not the finish line. It is the baseline for what comes next. Governor Khaled Mohamed Balama has reinforced this. It is a long-term national priority.

 

If you are already compliant, pressure will shift to role depth and leadership. If you are behind, timelines are tightening. Either way, this is the moment to act. Audit your position. Adjust your strategy. Build forward. And if you want it done properly, speak to advisors who understand both regulation and execution.

FAQs:

It reached around 41% by the end of 2025.

The target is 45%.

The banking sector leads with 67%.

A national initiative to train and place UAE nationals in financial sector roles.

17,338 individuals.

CAMS, CFA, CIA, CISI and multiple AML and insurance certifications.

A hiring commitment by five banks to employ 1,700 UAE nationals.

Yes. They must reach 30% by 2027.

30% by 2026.

Institutions may face regulatory scrutiny and compliance action.

A specialised training pathway for actuarial roles locally and abroad.

Yes. All licensed institutions fall under CBUAE oversight.

97% as of 2025.

Across total workforce, critical roles, leadership, and governance committees.

Training programmes, hiring initiatives, and institutional certification pathways.

References

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UAE eInvoicing 4-Corner Model: Everything Your Business Needs to Know in 2026

By now, e-invoicing is likely on your radar, but the upcoming changes are more than just a digital upgrade. 

 

The UAE is officially moving to the eInvoicing 4-Corner Model, a system that fundamentally changes how businesses interact. Starting in April 2026, secure invoice exchange via a network of trusted providers will become the mandatory standard.

Understanding the 4-Corner Framework

At its core, this is a security-first digital framework. It moves away from direct billing and instead links the Supplier (Corner 1) and the Customer (Corner 4) through two intermediaries. 

 

These intermediaries, known as Accredited Service Providers (ASPs), ensure every transaction is legally compliant before it even reaches the recipient.

 

The Ministry of Finance set this in motion on April 21, 2026. While the announcement is fresh, the foundation rests on Federal Decree-Law No. 16 of 2024 (which updates the VAT Law) and Federal Decree-Law No. 17 of 2024 (which governs tax procedures). Both laws technically became effective on November 1, 2024, setting the stage for the current rollout.

 

Crucially, Ministerial Decisions No. 243 and 244 of 2025 will dictate the exact integration steps. Compliance isn’t a suggestion; the penalties for falling behind are designed to be significant.

How the 4-Corner System Actually Works

The system creates a secure chain between four distinct points:

  1. Corner 1 (The Supplier): Your business generates the invoice. Note that only the XML format is compliant—PDFs and images are no longer valid.

  2. Corner 2 (Supplier’s ASP): Your provider validates the data and converts it into the UAE-standard PINT AE format.

  3. Corner 3 (Buyer’s ASP): The customer’s provider receives and verifies the file.

  4. Corner 4 (The Buyer): Your customer receives a verified, secure e-invoice.

Key Detail: If you operate under a VAT group, every member needs their own ASP endpoint, even though you share a single Tax Registration Number (TRN).

What Is Corner 5 — And Why It Changes Everything

The “5th Corner” is the FTA’s Central Tax Reporting Platform. Expected to go live ahead of the July 2026 pilot, this node changes everything. Under this model, both the supplier’s and buyer’s ASPs report the Tax Data Document (TDD) to the FTA simultaneously.

 

This means the authorities see your data in near-real time. The days of waiting for an audit to find a mistake are gone; discrepancies will be visible to the FTA the moment the invoice is issued.

 

To better understand the flow of the eInvoicing 4-Corner Model, here’s a breakdown of the roles and responsibilities at each corner of the system:

Corner Role Who Is It?
Corner 1 Invoice Sender Supplier / Your Business
Corner 2 Supplier’s ASP Your Accredited Service Provider
Corner 3 Buyer’s ASP Customer’s Accredited Service Provider
Corner 4 Invoice Receiver Customer / Buyer
Corner 5 Tax Authority FTA Central Reporting Platform

Which Businesses Are Affected — And When?

The eInvoicing mandate applies to all B2B transactions in the UAE, including those involving non-VAT registered entities and government transactions (B2G). 

 

This means that any business engaged in business-to-business or business-to-government transactions must comply with the new eInvoicing requirements. 

 

However, B2C transactions (business-to-consumer) are currently excluded from the mandatory scope, and there has been no announcement yet on their inclusion.

Exceptions

There are some exemptions to the mandate. Specifically, certain financial services and some international airline transactions are not required to comply with the eInvoicing rules. 

 

This exclusion is outlined in Ministerial Decision No. 243 of 2025, which provides clarity on which sectors are exempt due to the nature of their transactions or their existing regulatory frameworks.

Mandatory Implementation Timeline

The eInvoicing system will be implemented in phases. Below is the timeline for when different businesses need to be ready:

Phase Target Group ASP Appointment Deadline Go-Live Date
Pilot Voluntary (All businesses) — July 1, 2026
Phase 1 Revenue ≥ AED 50M July 31, 2026 January 1, 2027
Phase 2 Revenue < AED 50M March 31, 2027 July 1, 2027
Government All Government Bodies March 31, 2027 October 1, 2027

Critical Note for Phase 1 Businesses:

If your business revenue exceeds AED 50M, you have less than three months from today to appoint an Accredited Service Provider (ASP). Given that ERP integrations often take 6+ months, waiting could put your business at risk of missing critical compliance deadlines.

Penalties for Non-Compliance

The cost of errors is high under Cabinet Decision No. 129 of 2025.

  • Late Issuance: Failing to provide a compliant e-invoice within 14 days results in a AED 2,500 fine per case.

  • Record-Keeping: Initial violations for poor records start at AED 10,000, doubling to AED 20,000 for repeat offenses within two years.

What Your Business Must Do Right Now

  1. Check Your Threshold: Confirm if you fall into the AED 50M+ category.

  2. Audit Your Tech: Ensure your ERP can produce compliant XML files.

  3. Select an ASP: Use the FTA’s EmaraTax platform to find an accredited provider and sign a commercial agreement.

  4. Test Early: Aim to complete onboarding well before the July 2026 pilot.

How ADEPTS Can Help

Compliance at this level requires more than just new software. ADEPTS provides the technical and legal oversight needed to bridge the gap.

  • Gap Analysis: We help AED 50M+ businesses map their current workflows and identify where their ERP fails the new XML standards.

  • ASP Selection: We assist in choosing the right provider based on your specific transaction volume and industry needs.

  • Legal & Tax Advisory: Our teams interpret the nuances of Ministerial Decisions No. 243 and 244 to ensure your real-time reporting is airtight before the FTA sees it.

Conclusion

The 4-Corner Model isn’t a “someday” project—it’s here. With the April 21 announcement behind us, the July pilot is only weeks away. If your revenue hits that AED 50 million mark, the January 1, 2027, deadline is closer than it looks on the calendar.

 

This shift is a major piece of the UAE’s move toward a fully automated, real-time financial landscape. With the FTA now getting a direct window into every B2B transaction, the era of “filing later” is being replaced by “reporting now.” This is a massive step in the country’s data-driven vision.

 

The smart move is to act while you still have a lead time. Businesses that start their ASP selection and ERP audits today will avoid the last-minute scramble that usually leads to errors and fines. Taking the first step now is the best way to keep your operations running smoothly.

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DIFC Becomes the World's First AI-Native Financial Centre — Here's What It Means for Your Business

As “AI” becomes increasingly common, the Dubai International Financial Centre (DIFC) is making a bold move. It’s not just adopting AI, it’s completely rebuilding its financial system with AI at the heart of it. 

 

By 2026, DIFC will be the first financial centre in the world to officially declare itself AI-Native.

 

So, what does this mean for your business? And why should it matter to you?

 

Let’s take a closer look.

What Does "AI-Native" Actually Mean?

It’s not about just using AI tools or running a few pilots on the fringes. DIFC is embedding AI at the core of its operations, across five key layers. This isn’t a surface-level upgrade; it’s an entire rebuild from the ground up.

 

While Singapore leads the APAC region with 63% of its institutions using AI in production, no financial centre has declared itself “AI-Native” until now. DIFC is setting a new global standard by integrating AI not just into its processes, but into its regulatory framework and infrastructure.

 

Unlike traditional hubs like London or New York, DIFC isn’t weighed down by legacy systems. This gives it a unique edge in reshaping how financial services operate — all while staying agile and future-ready.

 

As the UAE leads the world in AI adoption with 64% of its working-age population using AI in 2026, DIFC’s AI-Native status doubles down on the nation’s position as a global AI leader.

DIFC By the Numbers — Where It Stands Today

Let’s look at the facts. In 2025, 8,844 active companies were registered in DIFC, showing a 28% growth from the previous year. A solid performance.

 

Revenues in 2025 grew by 20%, reaching AED 2.13bn, while net profits jumped 28% to AED 1.48bn. DIFC is clearly moving forward.

 

The shift is evident in the rising number of AI, FinTech, and innovation-driven entities — now 1,677, a 35% increase in just one year. It’s becoming clear where the future of finance is headed.

 

Currently, DIFC ranks 11th globally among international financial centres and 4th worldwide in financial technology and innovation. 

 

And it’s not stopping there. The Za’abeel District expansion, worth Dh100 billion, will double the size of DIFC, with 42,000 companies and 125,000 professionals expected. 

 

So, with all this growth, DIFC has decided to take the next step. It’s declaring itself AI-Native. Why? The timing couldn’t be more deliberate.

The Road to AI-Native — DIFC's Journey Since 2023

It didn’t happen overnight. Back in 2023, DIFC set its sights on the future. A five-year AI strategy was launched. Alongside that, data governance policies were put in place, ensuring that AI would have a strong, regulated foundation.

 

Fast forward to today. AI isn’t just any other word. It’s now officially part of the DIFC Data Protection Law — incorporated as Regulation 10. This is called true commitment.

 

Then came the DFSA AI Survey 2025. And the numbers showed that 52% of DIFC firms are now actively using AI. That’s a big jump from just 33% in 2024. What’s more, Generative AI usage rose 166% year-on-year. 

 

And it doesn’t stop there. The Dubai AI Campus at DIFC, the largest dedicated AI cluster in MENA, is already home to over 180 AI companies. Plus, 315 entities are registered under the Dubai AI Licence.

 

April 21, 2026: The official AI-Native declaration. And it’s not just a milestone. It’s the next logical step.

The 5 Pillars of DIFC's AI-Native Vision

DIFC is redefining the financial landscape through five key pillars that bridge the gap between bold technology and responsible regulation. Together, they sustain a unique ecosystem where businesses can leverage the latest AI tools and tap into a world-class talent pipeline built for 2026 and beyond.

1. Legal & Regulatory Frameworks

DIFC is leading the way in integrating AI and robotics into financial regulation. Not just humans — we’re talking about AI agents, too. The DIFC Courts’ 2026–2030 strategy already prioritizes AI integration, making it the first jurisdiction to regulate physical AI within a financial law framework.

2. Business Operations

AI isn’t just a tool; it’s part of the fabric of DIFC’s operations. From enterprise workflows to compliance systems and even financial services delivery, AI is everywhere. The DIFC Authority employees? They’re already working with specialized AI agents daily.

3. Talent Development

AI isn’t just about technology — it’s about people. DIFC is pushing for executive education, regulatory training, and technical certifications. It’s also preparing for human-AI-robot collaboration training on a large scale, ensuring that both local and global talent are AI-ready.

4. Ecosystem Infrastructure

The Full-stack AI Campus at DIFC is a world first. It’s not just about regulation or training. It’s about computing power and physical AI. With expanded accelerators, venture platforms, and strategic partnerships, DIFC’s goal is clear: outperform the top-10 financial centres in startup density, VC funding, and unicorn creation.

5. Physical Urban Infrastructure

By 2030, DIFC will be home to intelligent buildings, autonomous mobility, and service robotics. Think digital twins and smart utilities. Thousands of sensors will turn DIFC into a “sensor-enabled city-within-a-city”. Even maintenance and security will be partly handled by robots, with AI reducing energy usage across the board.

USD 3.5 Billion & 25,000 Jobs — What the Numbers Mean

USD 3.5 billion (AED 12.9bn) — that’s the value driven by AI-powered financial innovation and global capital inflows.

 

And 25,000 new jobs? These aren’t just any jobs. We’re talking about roles requiring advanced skills, human-AI collaboration, and a focus on next-gen financial services.

 

In 2023, the AI sector in Dubai was valued at $3.5 billion, and it’s projected to skyrocket to $46 billion by 2030. That’s a 44% annual growth rate. 

 

DIFC’s AI-Native programme is a crucial part of this larger national AI boom. So, who stands to benefit? FinTech firms, asset managers, banks, professional services, and startups.

 

Still not sure if this affects your business? Well, if you’re in finance, it does.

DIFC vs The World — How It Compares

Let’s take a look at how DIFC stacks up against other major financial centres around the globe when it comes to embracing AI.

Factor DIFC (AI-Native 2026) Singapore London
AI Adoption in Finance 52% firms (DFSA 2025) 63% production-level 57% using AI
Regulatory AI Framework Regulation 10 + AI-Native law MAS AI guidelines FCA AI framework
AI Campus Full-stack (first globally) Smart Nation 2.0 168 AI FinTechs
Legacy Constraints Low (newer centre) Medium High
Physical AI Integration Yes (by 2030) Partial No

Singapore is making aggressive moves to scale AI, but talent shortages are still a roadblock. 54% of institutions there cite it as their top challenge.

 

DIFC’s advantage? It’s all about speed. With fewer legacy systems to hold it back, DIFC can implement AI faster than the others.

 

As the saying goes, “London and Singapore are running pilots. DIFC is running a country.”

The Smart City District — Physical AI by 2030

The Za’abeel District expansion is huge. In the first phase, thousands of sensors will be added across the area. This will connect everything, making it smarter and more efficient. Buildings will adjust themselves automatically, self-driving cars will take people where they need to go, and digital twins will track everything to make sure it runs smoothly.

 

But that’s just the beginning. Some maintenance and security tasks will be done by robots. Plus, with the help of AI, the district will use less energy and work more efficiently overall.

 

The new Za’abeel District will cover 3.6 million square feet. The first phase is set to be completed by 2030. It will be the world’s first truly AI-Native district.

 

By 2030, DIFC won’t just be a business place. It’ll be a living, sensing, self-managing city.

Dubai AI Festival 2026 — Mark Your Calendar

Dubai is effectively planting its flag as the world capital of AI-driven finance this October. On the 26th and 27th, the World Trade Centre will host a massive cross-section of the industry—we’re looking at over 20,000 people and a global network of 500+ investors. 

 

This isn’t just an isolated event; it’s the D33 Agenda and DIFC 2030 Strategy coming to life. It’s a deliberate move to ensure Dubai leads the next wave of financial technology.

 

For the team at ADEPTS, this event is essential. As we specialize in the complexities of AI regulatory compliance, we see the 50+ workshops and roundtables as the perfect “war room” to sharpen our strategies and forge the partnerships that will define the next decade of finance.

 

Secure your spot: dubaiaifestival.com

How ADEPTS Can Help You Navigate DIFC's AI Future

Staying ahead in an AI-driven DIFC takes more than just a setup—it takes strategy. At ADEPTS, we specialize in aligning your business goals with the UAE’s evolving regulatory environment. From new market entries to strategic restructuring, we ensure your company is compliant, future-proofed, and ready to lead in this new era of finance.

 

Our Core Expertise:

  • Seamless DIFC Licensing: We take the guesswork out of company setup, handling the technicalities so you can focus on your launch.

  • Regulation 10 & Compliance: We’ll help you decode the new AI frameworks, ensuring your operations meet DIFC’s latest legal benchmarks.

  • Future-Proof Structuring: We don’t just set up companies; we build them to thrive within an AI-integrated ecosystem.

Curious about how the DIFC Annual Performance Report or the ADGM vs. DIFC debate impacts your move? 

 

Let’s talk. 

 

ADEPTS is here to ensure that when you choose DIFC in 2026, you’re set up for a win.

Conclusion

This isn’t a “someday” scenario—the world’s first AI-native financial hub is already here. With over 8,844 companies on the ground and $3.5 billion flowing into AI-led innovation, the scale of this shift is hard to ignore.

 

The UAE has already set the pace for global AI adoption, and DIFC is the engine room for that change. If you’re in the financial sector, the transition isn’t optional; it’s about whether you’ll be positioned inside the world’s most advanced ecosystem when the dust settles. If you’re ready to make the move, ADEPTS is on hand to streamline your transition and ensure you’re built for what’s next.

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CBUAE Updates AML, CFT and CPF Guidance for Licensed Financial Institutions

UAE Central Bank Issues Major Anti-Money Laundering Update

On 16 April 2026, the CBUAE dropped a big update on AML, CFT, and CPF.

 

These new rules apply to all financial institutions in the UAE. If your business deals with money, you’ll need to make sure your systems can catch anything suspicious. It’s all about being ahead of the game.

 

With banks, Registered Hawala Providers (RHPs) also need to step up. Every financial service in the UAE has to follow these new rules.

 

The goal of this update is to tackle money laundering and terrorist financing head-on. The CBUAE wants institutions to stay alert and act fast. It’s all about keeping the UAE’s financial sector safe and trusted.

What Is Included in the New CBUAE Guidance?

The CBUAE’s new guidance is changing things up in the UAE’s financial world. 

Anti-Money Laundering (AML) Controls

The latest rules are pushing financial institutions to level up their AML systems. It’s no longer about just checking off boxes. They need real systems to spot suspicious activity fast. Financial institutions need to keep a close eye on everything and catch any red flags early. Internal monitoring is going to be a key part of this.

Combating Financing of Terrorism (CFT)

Terrorist financing is a big risk, and the new guidelines make it clear: risk-based controls are a must. Financial institutions have to be alert for suspicious transactions that could be connected to terrorism to catch these issues before they escalate.

Counter Proliferation Financing (CPF)

This part’s all about proliferation financing (PF). Financial institutions will now have to run sanctions checks and evaluate the risks related to PF. The aim is to stay ahead of new threats and avoid getting caught up in activities that could pose a security risk.

Key Risk Areas Covered by CBUAE

The CBUAE has pointed out some key areas that need extra focus. These are the spots where people often try to hide money or move it in shady ways. Understanding these risks is the first step to making sure everything stays above board. Here’s what you need to know:

Trade-Based Money Laundering (TBML)

Trade-Based Money Laundering is when criminals try to move money through fake or manipulated trade deals. Fake invoices are a common tactic, they help hide the real money trail. Over and under invoicing are also used to change the numbers on paper. It’s important to watch out for trade manipulation, where the value of goods is changed to make illegal money moves look legitimate. And transshipment misuse happens when goods go through a country without really entering it, often hiding where they came from or are going to.

Correspondent Banking Risks

Correspondent banking connects banks in different countries, but it’s not without risks. One big concern is cross-border exposure, banks need to be careful of who they’re dealing with across borders. That’s why third-party due diligence is so important. Banks must really know who their partners are. The CBUAE also stresses the need for ongoing monitoring, banks need to keep an eye on transactions to catch any issues early on.

Stronger KYC, CDD and Record Keeping Rules

The CBUAE has updated the rules for Know Your Customer (KYC), Customer Due Diligence (CDD), and Record Keeping. These changes make sure institutions are doing their part to keep the system secure.

Customer Due Diligence (CDD)

With CDD, the focus is on knowing your customer from the start. First, it’s all about identity verification, making sure who they say they are checks out. You’ll also need to build a customer risk profile to understand their potential risk level. And don’t forget the source of funds review. It’s important to track where their money comes from, to avoid illegal or questionable sources.

Know Your Customer (KYC)

KYC starts with doing thorough checks when a customer first joins. These onboarding checks help ensure they’re legitimate. But KYC doesn’t stop after the first day. Institutions must carry out ongoing reviews of their customers, keeping an eye on any changes that could affect their risk.

Record Keeping

Record keeping is crucial. Institutions must keep the right documents on file for each customer. It’s also about being ready for audits. You need to ensure there’s always an audit trail available. This way, if there’s ever a need to dig into past transactions, everything is in order.

Best Practices Released by CBUAE

The CBUAE has also rolled out some best practices to help institutions stay on top of things. These practices guide how to manage risks and train staff effectively. Let’s dive into what’s included:

Risk-Based Institutional Assessments

Institutions need to carry out AML risk scoring to evaluate the risks they face. With proportionate controls, institutions can make sure they’re applying the right level of security based on the risks they’ve identified. It’s all about being smart and strategic, not overburdening systems that don’t need it.

Role-Based AML Training

AML training is now being tailored to roles. It’s about building up staff capabilities, so everyone knows how to spot and handle risks. But it’s not just for the front line. Senior management accountability is key too. Leaders must understand their responsibilities and lead by example to drive the right practices across the institution.

Why This Matters for UAE Financial Institutions

The new CBUAE guidelines are a game changer for everyone in the financial world. Here’s why it matters for institutions across the UAE:

Banks need stronger AML systems

Banks now have to step up their AML systems. The rules are clearer, and the pressure is on. They need to catch suspicious activity faster and be proactive, not reactive. 

Exchange houses face tighter controls

Exchange houses are also feeling the heat. They’ll face tighter controls to make sure no money is flowing through unchecked. These changes mean more responsibility to verify and monitor transactions closely.

Hawala providers under sharper scrutiny

Hawala providers are under the microscope. The new rules put them under sharper scrutiny. They must now meet the same strict standards as banks when it comes to monitoring transactions and preventing illegal activities.

Higher regulatory expectations in UAE

With these changes, regulatory expectations are higher across the board. The UAE is raising the bar. Institutions need to be more diligent and keep up with evolving standards to stay compliant and secure.

What Institutions Should Do Immediately

The CBUAE guidelines are out, so it’s time to take action. Here’s what needs to be done right now in every institute:

  • Review AML policies: Check your AML policies. Make sure they match the new rules. 

  • Update KYC files: Go through your KYC files. Make sure all customer info is correct. This is the basics of staying compliant.

  • Reassess ML/TF/PF risks: Take a second to reassess risks. Look at the current situation and see if anything has changed. You don’t want to miss anything.

  • Improve monitoring systems: Now, it’s time to boost your monitoring systems. You need to catch anything suspicious faster. Make sure your systems are working well.

  • Conduct staff training: Get the team trained on the new rules. Staff training is key here. Everyone needs to be on the same page.

  • Test suspicious transaction reporting: Test your reporting system for suspicious transactions. Make sure it’s running smoothly and that you’re ready to report if needed.

ADEPTS Advisory Support

At ADEPTS, we’re here to make the CBUAE guidelines easier for you. Here’s how we can help:

  • AML Gap Assessment: We’ll check your AML systems to see if anything’s missing. If something’s off, we’ll help you fix it.

  • Internal Controls Review: We’ll take a look at your internal controls to make sure everything is running smoothly. If there are issues, we’ll help you sort them out.

  • TBML Risk Review: We’ll look into your TBML risks. Any fake invoices or trade problems you have, we will sort those out.  

  • KYC Remediation: If your KYC records aren’t up-to-date, we’ll help you clean them up and get them right.

  • Compliance Training: We’ll provide compliance training for your team. They’ll know what to do and how to stay on top of things.

  • Regulatory Readiness Support: We’ll help you get regulatory ready. Whether it’s audits or keeping up with new rules, we’ve got you covered.

Final Analysis

The CBUAE’s new update shows the UAE’s serious push to stay a top financial player globally. The purpose of this update is to reduce the proliferation risks and cracking down on money laundering and terrorist financing. The rules are straight and strict, forcing banks and other financial players to comply. Another great advantage of the rule is to keep the system clean and trustworthy. This move also places UAE ahead in the global finance game.

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Dubai Free Zone Incentives 2026: DIEZ Rolls Out Key Economic Measures to Support Business Resilience

On April 9, 2026, DIEZ (Dubai Integrated Economic Zones Authority) rolled out a bold new set of measures to support businesses in its major free zones, as reported by Arabian Business.

 

This isn’t just about reacting; it’s about proactively tackling today’s regional challenges. Dubai is committed to being a stable and attractive destination for global investors, no matter the global economic landscape.

 

These measures tie directly into the Dubai Economic Agenda (D33), with the clear aim to double Dubai’s economy and make it more cost-effective for businesses to operate here. By offering cost savings and greater flexibility, Dubai is positioning itself to remain a top global investment hub for years to come.

 

According to Arabian Business, the measures are designed to ease cost pressures and improve operational flexibility for businesses across these zones

Key Free Zones & Core Incentives for Business Sectors

The DIEZ mandate targets three key free zones in Dubai: DAFZ, DSO, and Dubai CommerCity. 

 

These zones host major industries, including Tech, E-commerce, Aviation, and Logistics, which are the core focus of the new incentives. 

 

Here’s a breakdown of how these incentives benefit each industry:

  • Aviation and Logistics (DAFZ):
    Companies in DAFZ will benefit from stabilized rental rates and the option to pay rent in monthly installments, without any extra fees. They’ll also get penalty waivers for late license renewals. These changes are designed to reduce operational costs and provide more flexibility in cash flow management.

  • Tech (DSO):
    For tech companies in DSO, the new measures provide three-month deferrals on fees and zero-fee amendments for restructuring. These measures will help reduce financial pressure, allowing tech companies to maintain growth and focus on innovation without worrying about administrative burdens.

  • E-commerce (Dubai CommerCity):
    E-commerce businesses in Dubai CommerCity will see rent flexibility, fee deferrals, and administrative relief. These incentives are aimed at helping e-commerce companies stay competitive in a fast-paced market, supporting their ability to scale and meet growing demand.

By supporting key industries within strategic zones, these new measures will help businesses reduce costs, improve operational efficiency, and ensure that Dubai remains a top global investment hub for 2026 and beyond.

 

By offering flexibility and reducing financial burdens, DIEZ is helping the aviation, tech, logistics, and e-commerce sectors stay competitive and agile in an ever-evolving market.

What This Means for Business Owners in 2026

For SMEs, these changes bring immediate relief. 

  • Deferred payments and waived penalties allow businesses to manage cash flow more effectively, without the usual financial burden.

  • The three-month deferral on activity changes is another key benefit. It gives companies the time they need to adjust and stay ahead of the curve for 2026. Whether it’s restructuring or realigning operations, businesses now have the flexibility to move quickly and adapt to market shifts.

  • These measures also help boost investor confidence. Dubai’s quick response and pro-business decisions show investors that the city is committed to supporting businesses, even during global economic uncertainty. 

With these incentives, Dubai proves again that it is a reliable destination for investment, regardless of what happens in the broader global economy.

How ADEPTS Can Optimize Your Strategy

ADEPTS helps businesses take full advantage of these new DIEZ incentives. With expert restructuring advisory services, ADEPTS guides companies through the “Zero-Fee” window, helping them modernize their corporate structure or adjust capital without the added costs.

 

ADEPTS also assists with cash flow forecasting, helping businesses transition to monthly rental payments and manage the three-month fee deferral cycle. 

 

In addition, ADEPTS ensures businesses stay fully compliant with UAE regulations while leveraging the penalty waivers to avoid financial strain. Partnering with ADEPTS helps companies maximize the 2026 DIEZ incentives and future-proof their Dubai operations.

Conclusion

These new measures mark the start of a “Resilience Era” for businesses in Dubai’s free zones. With the support provided by DIEZ, companies now have the tools they need to adapt, grow, and thrive in a changing market.

 

The 2026 incentives further solidify Dubai’s position as one of the top global cities for investment. By offering practical solutions to reduce costs and improve flexibility, these measures ensure that Dubai remains a leading choice for businesses looking to succeed in the UAE and beyond.

FAQs:

The new incentives include rent flexibility with stable renewal rates and the option to pay rent in monthly installments. Additionally, there are fee waivers for late license renewals and some administrative fees, making it easier for businesses to stay on track.

The DIEZ measures apply to three major free zones: Dubai Airport Freezone (DAFZ), Dubai Silicon Oasis (DSO), and Dubai CommerCity. These zones are key to Dubai’s business ecosystem and are set to benefit most from the new incentives.

Businesses have a three-month deferral period to amend their licenses without incurring additional fees. This gives companies more time to adjust their operations as needed.

No, there are no penalties for paying rent in monthly installments. The installment fees are completely waived, making it easier for businesses to manage their expenses.

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UAE Ministry of Finance Announces Key Amendments to Tax Procedures Executive Regulations (Effective April 2026)

On April 1, 2026, the UAE Ministry of Finance amended Cabinet Decision No. (74) of 2023. The said decision deals with the Executive Regulations of Federal Decree-Law No. (28) of 2022 on Tax Procedures. Important as it is, it isn’t the first of its kind. In fact, this amendment has landed after quite an overhaul of the tax law earlier this year.

 

The government seems to be aiming at easy compliance for businesses. The amendment will also clear up confusions for businesses. Transparency will greatly improve too.

5 Major Changes to the UAE Tax Procedures Executive Regulations

These changes are part of a broader plan. They affect businesses at many levels: 

 

Let’s go through them.

1. Clarity on Voluntary Disclosure Procedures

Voluntary disclosures have always been a bit tricky. Most businesses understand that if there’s an error in a tax return, it needs to be fixed. The problem was how to do it properly without creating more issues.

 

In practice, what we’ve seen is hesitation. Companies would delay corrections simply because they weren’t fully confident about the process.

 

That’s where this update helps.

 

The Ministry has now clearly outlined how voluntary disclosures should be submitted. With the new amendment, the steps are more defined, and everything is aligned with the updated tax law. It’s not complicated anymore or at least, not as confusing as before.

 

This is a big relief. It gives businesses more confidence to fix mistakes early instead of letting them build into bigger problems later. Not perfect. But definitely better than before.

2. Streamlined Tax Refund Procedures

Getting a tax refund hasn’t always been smooth. In fact, it’s often been slow. Sometimes very slow.

 

Businesses would go back and forth, submit documents, wait, follow up, and still not have clarity on timelines. It affected cash flow, especially for smaller companies.

 

Now, the process is more straightforward.

 

If there’s a credit balance, it will be refunded. That’s the core idea. Fewer complications, less back-and-forth.

 

This is probably one of the most practical changes in the update. Small businesses and startups will benefit from this the most. This is because they will now have faster refunds. With fast refunds comes cash flow which is crucial for small businesses. 

 

For businesses, especially those managing tight budgets, faster refunds can make a real difference. It means better cash flow and less uncertainty.

3. Extended Record Retention Periods

Record-keeping rules have always been there, but there was some confusion when it came to refund claims.

 

For example, what happens if you’ve submitted a refund request, but the authority hasn’t made a decision yet? Can you dispose of old records? Or do you hold onto everything just in case?

 

Now it’s clearer.

 

If you’ve filed a refund claim before the limitation period expires and it’s still under review, you’ll need to retain your records for another two years.

 

On the surface, it feels like a small adjustment. Just a longer timeline.

 

But this is usually where things slip. Records get cleared out a bit too early. Someone assumes the matter is done. It often isn’t.

 

So in that sense, the change is doing something useful. It removes the grey area. You don’t have to guess whether to keep documents or not—you just do.

 

And if the authorities come back later, which can happen, you’re not trying to rebuild a file from memory. Everything is already there. Or at least, it should be.

 

Yes, it adds a bit of pressure on record-keeping. There’s no getting around that.

 

But it also avoids a different kind of problem. And arguably, a bigger one.

4. Updates to Tax Audits and Document Seizure

Audits are part of doing business. That’s just the reality. But the way documents and assets were handled during audits wasn’t always very clear.

 

Some businesses weren’t sure how long authorities could hold onto records or assets. It felt like a grey area.

 

Now, the authorities have more flexibility.

 

They can extend the period for preserving or seizing documents and assets during audits, especially in more complex cases where a deeper review is needed.

 

Not everyone will like this one.

 

It does give more power to the authorities, which can feel intrusive. But at the same time, it helps ensure that audits are thorough and accurate. And for businesses that are fully compliant, that’s actually a good thing.

5. Data Confidentiality and Government Disclosure

Data protection is a big concern for businesses today. And rightly so.

 

There has always been some uncertainty around how tax data is shared with government authorities, and how protected that information really is.

 

This update brings more clarity.

 

The rules now clearly define how taxpayer data can be disclosed and, just as importantly, where the limits are. At the same time, they reinforce that confidentiality remains a priority.

 

That balance matters.

 

Businesses still need to share information when required, but now there’s more reassurance around how that data is handled. It’s a step toward both transparency and trust.

What Is the MoF Trying to Achieve Here?

The direction is fairly clear.

 

These changes are meant to simplify the system, reduce confusion, and make compliance more practical for businesses. Not just in theory, but in day-to-day operations.

 

At a broader level, the goals are to:

  • Improve transparency across the tax system
  • Make compliance easier and more predictable
  • Ensure accuracy in filings and procedures
  • Protect taxpayer rights throughout the process

It’s about making the system work better. For both sides.

How ADEPTS Can Help Your Business Stay Compliant

The new rules are already in effect. As of April 1, 2026, expectations are higher. For many businesses, the issue is its execution.

 

Records may be incomplete. Processes may not be consistent. And small gaps can turn into bigger problems during reviews or audits. That’s where a structured approach matters.

 

At ADEPTS, we help you take a closer look at how things are currently done. Then we identify what needs to be fixed, improved, or tightened. Nothing unnecessary. Just what actually makes a difference.

 

Our support includes:

  • Audit support to help you prepare for and manage regulatory reviews with clarity
  • Voluntary Disclosure filings to address and correct issues in a timely manner
  • Tax refund assistance to ensure you are not missing legitimate recovery opportunities

Now is a good time to review how your business manages its tax records and filings. A proactive approach today can prevent unnecessary issues later.

 

Contact the experts at ADEPTS today to ensure your record-keeping and tax filing processes align with the newly amended Cabinet Decision No. (74) of 2023.

Conclusion

These updates are part of a bigger shift. The UAE is clearly moving toward a tax system that is more structured, more transparent, and easier to follow at least compared to before.

 

There’s still responsibility on businesses to stay compliant. That hasn’t changed.

 

But the process itself? It’s getting a bit easier to navigate.

FAQs:

They’ve been in force since April 1, 2026.

If you’ve submitted a refund claim before the limitation period ends and the authority hasn’t made a decision yet, you’ll need to keep your records for an extra two years.

The process is now clearer and better aligned with the updated law. Businesses have more defined steps to follow when correcting errors.

References

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