UAE Issues New Central Bank Law to Strengthen Stability and Governance

The UAE Cabinet has enacted Federal Decree Law No. 6 of 2025, a landmark reform designed to enhance the independence of the UAE Central Bank and formalize its role as the national Resolution Authority overseeing the stability of the financial system.

The new legislation introduces a comprehensive framework aimed at reinforcing confidence in the UAE’s banking and financial ecosystem, aligning it with international best practices and digital transformation goals.

Key highlights of the law include:

Mandatory alignment of all financial institutions with digital transformation standards to ensure accessible and inclusive financial services.

Unified consumer protection mechanisms across banking and insurance sectors to safeguard clients and enhance transparency.

Substantial strengthening of the Central Bank’s enforcement powers, with administrative fines increased by up to tenfold and the introduction of an automated reconciliation system for violations.

These measures are expected to drive stronger regulatory compliance and operational integrity across the financial sector.

Why it matters for Family Offices:

Enhanced financial governance and oversight reduce systemic and regulatory risks, fostering a more stable, transparent, and investable environment. The reforms also signal the UAE’s continued evolution as a globally trusted jurisdiction for wealth management and institutional investment.