UAE Capital Markets Experience Strong Growth in 2025
📋 Key Takeaway: The UAE’s capital markets demonstrated significant growth in 2025, marked by increased IPO activity, a deepening debt market, and enhanced regulations on virtual assets, according to the Capital Market Authority’s annual report.
Robust Growth in Issuance Activity
The UAE’s capital markets showcased robust growth in 2025, driven by strong issuance activity and rising investment flows, as detailed in the Capital Market Authority’s (CMA) annual report. Total share listings reached Dh14.53 billion, comprising Dh7.29 billion raised through initial public offerings (IPOs) and Dh7.24 billion through direct listings. This reflects a sustained appetite for equity capital across both Abu Dhabi and Dubai.
In addition to IPOs and direct listings, public joint-stock companies approved capital increases totaling just over Dh6.1 billion. The year also witnessed three mergers and acquisitions, signaling continued consolidation within market segments. These developments underscore a growing confidence among investors and companies in the UAE’s capital markets.
Expansion of Debt Markets and Sustainable Finance
The debt markets in the UAE experienced significant deepening, with the value of listed bonds and sukuk reaching Dh27.6 billion. Private placements also surged, totaling around Dh638 billion. Notably, sustainable finance gained traction, with green bonds and sukuk registered for listing rising to Dh8.6 billion, reflecting a more than 50 percent increase from the previous year. The CMA attributed this growth to both issuer demand and regulatory initiatives aimed at promoting sustainability-linked financial instruments.
The expansion of investment funds further broadened market participation, as the number of licensed local funds more than doubled to 37 in 2025, compared to 18 the prior year. Foreign investment funds registered with the CMA also increased significantly, benefiting from direct promotional efforts and mutual recognition arrangements. Additionally, end-of-service gratuity savings funds expanded, providing private-sector employees with regulated investment options for their workplace benefits.
Strengthened Governance and Regulatory Oversight
As the capital markets grew, the CMA intensified its focus on governance and investor protection. Compliance with corporate governance reporting exceeded 98 percent, and improvements in electronic systems for shareholder meetings enhanced participation and transparency. The total approved cash dividends for the 2024 financial year reached Dh89.6 billion, primarily driven by the banking, real estate, and energy sectors.
The CMA’s enforcement activity remained active yet measured, resolving 75 complaints and conducting over 300 supervisory actions, including warnings and fines. Approximately Dh10.8 million was refunded to investors, with administrative fines totaling just over Dh8 million. The authority also processed more than 41,000 applications for unclaimed dividends, disbursing nearly Dh240 million to investors.
Regulatory Developments in Virtual Assets
A key regulatory development in 2025 was the rapid expansion of oversight for virtual assets. The number of entities registered or licensed in this sector increased significantly, bolstered by enhanced coordination with Dubai’s virtual assets regulator. The rollout of a dedicated supervisory framework was designed to balance innovation with financial stability.
International cooperation also saw notable strengthening, with the CMA expanding its network of memoranda of understanding to 166. This effort reinforces cross-border regulatory alignment and positions the UAE more firmly within the global financial ecosystem.
Frequently Asked Questions
What were the total share listings in the UAE capital markets for 2025?
Total share listings reached Dh14.53 billion in 2025.
How much was raised through IPOs and direct listings?
Dh7.29 billion was raised through IPOs and Dh7.24 billion through direct listings.
What is the value of listed bonds and sukuk in the UAE?
The value of listed bonds and sukuk reached Dh27.6 billion.
How did the CMA enhance investor protection in 2025?
The CMA improved corporate governance compliance and electronic systems for shareholder meetings.
What developments occurred in the virtual assets sector?
The number of registered or licensed entities in the virtual assets sector increased significantly, supported by a new supervisory framework.
