President enacts law to protect financial stability

UAE President His Highness Sheikh Mohamed Bin Zayed Al Nahyan has issued Federal Decree Law No. (6) of 2025, regarding the Central Bank, and the regulation of financial institutions and activities and insurance activities.

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The Federal Decree Law is part of UAE's continuous efforts to streamline the legislative and supervisory frameworks of the financial sector, enhance its stability and competitiveness and align the UAE's financial ecosystem with the highest international standards. It is set to strengthen the Central Bank's independence and vital role in ensuring financial and monetary stability.

The Federal Decree Law aims to maintain the stability of the national currency, promote and protect the stability of the financial system, and ensure prudent management of the Central Bank's foreign reserves.

It defines the principal functions of the Central Bank of the UAE, mainly to establish and implement monetary policy, organise and supervise licenced financial activities in line with international standards, and issue appropriate regulations and standards to ensure prudent and effective financial practices.

The Central Bank is also tasked with managing foreign reserves to cover the monetary base, supporting sustainable financing practices while integrating governance principles, monitoring and analysing regulatory risks, and developing and overseeing the infrastructure of financial markets.