Additionally, recent changes to the Virtual Asset Regulatory Framework aim to support the UAE’s digital finance ambitions while maintaining investor protection. In Abu Dhabi, regulators have enhanced the scope of venture capital investments to include digital-asset-related companies, highlighting a more flexible and adaptive regulatory environment.
Investor protection remains a key priority. UAE authorities joined counterparts from several major markets in a recent international effort targeting unlawful financial influencers, emphasizing how cross-border cooperation is becoming more central to addressing misleading promotions and unethical behavior.
Trust and transparency are also essential to the region’s financial development. The European Commission recently removed the UAE from the list of high-risk countries for anti-money laundering, and followed the UAE’s removal from the Financial Action Task Force’s (FATF) “grey list” in February 2024. This positive development recognizes the nation’s ongoing regulatory developments and improved oversight systems.
Looking ahead, asset managers in the region will need to navigate a regulatory landscape that is becoming more supportive of digital finance, ESG, Islamic investment and cross-border capital flows, while aligning with global compliance and supervision standards.
The current regulatory direction presents both challenges and opportunities for firms operating in or entering the Middle East. The 2025 KPMG Evolving asset management regulation report offers a global and regional perspective to help senior leaders, compliance teams and change functions think strategically and respond with confidence. It analyzes regulatory shifts and trends in the asset management sector across nearly 30 jurisdictions, highlighting over 200 updates.
