What is the UAE Capital Market Authority (CMA, formerly SCA)?
The UAE's federal capital-markets regulator was the Securities & Commodities Authority (SCA) for 25 years. From 1 January 2026 it is the Capital Market Authority (CMA). It licenses brokers, supervises ADX and DFM, sets fund rules, and sits behind the "Cat 1 to Cat 5" licensing track that UAE finance workers qualify for. Here's what changed in 2026, what the regulator does, and how it fits with the UAE's free-zone regulators.
2026: the SCA became the CMA
Two federal decree-laws issued in late 2025 took effect on 1 January 2026:
- Federal Decree-Law No. 32 of 2025 established the Capital Market Authority as the successor to the SCA. Same federal regulator, new name and a wider remit.
- Federal Decree-Law No. 33 of 2025 set out the new legal framework for the UAE capital market.
What that means in practice:
- Existing rules still apply. Decisions and resolutions issued under the SCA stay in force until the CMA replaces them. SCA Decision No. 13 of 2021 (the licensing framework) and Resolution No. 01 of 2023 (investment funds) are still the rules you'll see referenced.
- The remit is wider. The new framework expressly covers digital assets and tokenised securities, derivatives and structured products, and sustainable finance, with stronger investigation and sanction powers.
- Licensed firms and approved employees carry on. The rename didn't cancel anyone's licence or approval.
Quick facts
| Established | Federal Law No. 4 of 2000 (as the SCA). Renamed the CMA from 1 January 2026 (Federal Decree-Law No. 32 of 2025) |
|---|---|
| Type | Federal financial regulator (independent statutory authority) |
| Headquarters | Abu Dhabi, with offices in Dubai |
| Reports to | Cabinet of Ministers (semi-annually) |
| Board term | 4 years, renewable once |
| Fiscal year | 1 January – 31 December |
| Scope | Onshore UAE capital markets; firms practising regulated financial activities |
| Out of scope | Banks (Central Bank), DIFC firms (DFSA), ADGM firms (FSRA) |
What the CMA actually does
The regulator's core mandate was set by its founding law and has been amended since, most recently by the 2025 decree-laws. In practice, the day-to-day work falls into five areas:
1. Supervising the licensed markets
The CMA supervises the onshore exchanges, the Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM). This includes the listing rules, trading rules, surveillance, and disciplinary action against listed companies that breach disclosure obligations. (Nasdaq Dubai sits inside the DIFC and is regulated by the DFSA.)
2. Licensing financial activities
This is the most operationally significant part of the CMA's work. Anyone wishing to practise a regulated financial activity onshore — brokering, asset management, custody, credit rating, advisory — must be licensed by the CMA under one of five categories (more on these below).
3. Approving and supervising investment funds
Every onshore investment fund — local or foreign — must go through the regulator's approval process before being marketed to UAE investors. This covers public funds, private funds, family funds, real estate funds, REITs and VC funds.
4. Combating market abuse, money laundering, and terrorism financing
The CMA enforces the UAE's market abuse regime and is a key supervisor under Federal Law No. 20 of 2018 (AML/CFT). Penalties can be administrative (fines, suspensions, licence action) or criminal (in coordination with the FIU and law enforcement).
5. International cooperation
The CMA represents the UAE at IOSCO and signs memoranda of understanding with overseas regulators for information sharing and enforcement cooperation.
The five license categories
If you work in UAE finance and someone says "Cat 5 firm" or "Cat 1 broker", they're talking about these. The categories are set out in SCA Decision No. 13 of 2021, which remains in force under the CMA:
| Cat | Activity | Min capital | Typical firms |
|---|---|---|---|
| 1 | Securities (broker-dealer) | AED 30 million | EFG Hermes, Daman, ADCB Securities |
| 2 | Investment (asset management) | AED 50 million | Bank-owned and independent asset managers |
| 3 | Custody & Clearing | AED 50 million | Custodian banks (often integrated with Cat 1/2) |
| 4 | Credit Rating | AED 5 million | Limited population — niche |
| 5 | Ranking & Advice | None | Wealth advisers, IPO consultants, fund promoters |
Note the capital ladder: 30 / 50 / 50 / 5 / 0 millions AED. Cat 5 is uniquely the "no capital" category because it covers pure advisory work without client cash or principal risk. That's why Cat 5 is the entry point for most new entrants to UAE finance — and why we wrote a full guide on the Cat 5 license track separately.
The Board (as examined)
The FRR workbook describes the SCA Board of Directors like this. These are the numbers the exam tests. The 2025 decree-laws may change board arrangements under the CMA, so treat them as exam facts:
- Term length: 4 years, renewable ONCE (so a maximum of 8 consecutive years)
- Termination trigger: 3 consecutive missed meetings without acceptable excuse
- Securities holding disclosure: board members must disclose changes to their securities holdings within 1 week
- Cabinet reporting: the board reports SCA performance to the Cabinet of Ministers every 6 months
The Chairman is appointed by Cabinet decree. The CEO and senior leadership run day-to-day operations under the board's supervision.
How the CMA differs from the Central Bank, DFSA, and FSRA
The UAE has a three-tier regulatory landscape that often confuses newcomers:
| Regulator | Jurisdiction | What it covers |
|---|---|---|
| CMA (Capital Market Authority, formerly SCA) | Federal, onshore UAE | Capital markets — securities, funds, advisory, brokering |
| CBUAE (Central Bank of the UAE) | Federal, onshore UAE | Banking, insurance, exchange houses, finance companies, payment services |
| DFSA (Dubai Financial Services Authority) | DIFC free zone (Dubai) | Anything within the DIFC — banking, capital markets, asset management, etc., under a separate common-law regime |
| FSRA (Financial Services Regulatory Authority) | ADGM free zone (Abu Dhabi) | Anything within ADGM, under another separate common-law regime |
The mental model: onshore vs free zone. CMA + CBUAE cover the onshore UAE. DFSA and FSRA each have their own self-contained financial regulatory regime within their respective free zones (DIFC and ADGM). A firm operating onshore needs CMA / CBUAE licensing. A firm operating only within DIFC needs DFSA licensing. There is no automatic passporting between the regimes — a DIFC firm wishing to serve onshore UAE clients must additionally engage with the CMA.
Recent reforms (2020–2026)
The regulator has been notably active in legislative reform over the past several years:
- 2020 — Insurance regulator merger (Federal Decree-Law No. 25 of 2020). The Insurance Authority was merged into the Central Bank, which now supervises insurance. The SCA's core mandate didn't change.
- 2020 — Crypto-asset framework (Decision No. 23 of 2020). The first comprehensive UAE crypto regulation, covering security tokens, commodity tokens, exchanges, and fundraising platforms.
- 2021 — Licensed Bodies overhaul (Decision No. 13 of 2021). Modernised the entire firm-licensing regime, including the five categories described above.
- 2023 — Investment Funds reform (Resolution No. 01 of 2023). Major rewrite of fund rules, including the family-fund regime, GP/LP structures, and approval timelines that now form the basis of the FRR exam's Chapter 3.
- 2026 — SCA becomes the CMA (Federal Decree-Laws No. 32 and 33 of 2025, effective 1 January 2026). New name, successor authority, a wider remit and stronger enforcement powers. Earlier decisions stay in force until replaced.
Exam relevance
If you're studying for UAE qualifications, the regulator shows up prominently in:
- UAE FRR (CISI UAE Financial Rules & Regulations) — every chapter references the regulator's powers, processes, or specific resolutions. Chapter 1 is essentially a deep-dive on the SCA itself. The workbook still uses the name "SCA".
- CISI Combating Financial Crime — overlaps with the regulator's AML supervisory role under Federal Law No. 20 of 2018.
FAQ
Is the CMA the same as the old SCA?
Yes, in substance. Federal Decree-Law No. 32 of 2025 made the Capital Market Authority the successor to the Securities & Commodities Authority from 1 January 2026. The rename came with a wider remit (digital assets, derivatives and structured products, sustainable finance) and stronger enforcement powers. Existing SCA decisions stay in force until the CMA replaces them.
Does the exam say SCA or CMA?
The current CISI UAE FRR workbook and exam still mostly say "SCA". Answer using the workbook's facts. If a question says "SCA", it means the regulator now called the CMA.
Is the CMA the same as the Securities and Exchange Commission (SEC)?
The CMA performs an analogous role to the US SEC: it's the UAE federal capital-markets regulator. But its jurisdiction is narrower — banking sits with the Central Bank, and the free zones (DIFC/ADGM) operate under independent common-law regulators.
Can a CMA-licensed firm operate in DIFC?
Not automatically. DIFC is a separate jurisdiction with its own regulator (DFSA). A CMA-licensed firm wishing to serve clients within DIFC would typically need a separate DFSA license — or rely on the limited "marketing to DIFC professional investors" exceptions that the two regimes have negotiated.
Does the CMA issue individual licenses?
No. The CMA licenses FIRMS, not individuals. Individuals are registered as "approved employees" on the firm's license. To be eligible for approval, you typically need to have passed the relevant CISI exams (ICWIM + UAE FRR for most Cat 5 roles).
Does the CMA have prosecution powers?
The CMA has administrative sanction powers (fines, suspensions, license cancellation), strengthened under the 2025 decree-laws, but criminal prosecution is handled by the Public Prosecution. Serious cases (e.g. major market abuse, large-scale fraud) are referred for criminal proceedings.
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Related guides
- The complete UAE Cat 5 license guide — full walkthrough of the licensing track
- UAE FRR thresholds cheat sheet — every testable number in the FRR exam
- ICWIM 8-week study plan — calibrated to chapter exam weightings