UAE Cements Global Leadership in Digital Assets and Modern Finance

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How ADGM and VARA are driving the UAE's 2026 financial innovation boom.

ADGM reports 42% year-on-year growth in registered entities, reaching 2,972 companies by mid-2025.
Eleven major financial institutions representing over US$9 trillion in assets have established ADGM operations.
Binance commenced regulated operations in Abu Dhabi on 5 January 2026 following comprehensive FSRA licensing.
The UAE's new Capital Markets Law brings virtual assets within federal regulatory oversight from 1 January 2026.
VARA's 13-booklet regulatory framework provides comprehensive oversight for Dubai's virtual asset ecosystem.
The forthcoming digital dirham will enhance payment efficiency and enable programmable financial transactions.

The UAE has consolidated its position as a leading global centre for modern finance and digital assets, driven by strategic regulatory initiatives from Abu Dhabi Global Market (ADGM) and Dubai's Virtual Assets Regulatory Authority (VARA). According to reports published on 24 January 2026, the nation is attracting a substantial influx of fintechs and investment banks by offering robust frameworks that bridge traditional banking with blockchain-based financial innovation.

International financial experts have highlighted the UAE's success in establishing itself as a global benchmark for digital asset regulation and advanced asset management. Marco Santori, CEO of Solmate, stated that the UAE has emerged as one of the most influential global hubs for on-chain and modern finance, attributing this to the country's strategic geographic position and supportive business environment.

ADGM Records Explosive Institutional Growth

ADGM has experienced remarkable expansion in institutional presence. Reuters reported a 42% year-on-year increase in registered entities during the first half of 2025, with the total number of companies operating within ADGM reaching 2,972 by 30 June, compared with 2,381 at year-end 2024. Assets under management increased 42% since June 2024, with 154 fund and asset managers now overseeing 209 funds.

During Abu Dhabi Finance Week 2025, ADGM announced that 11 new major financial institutions representing over US$9 trillion in assets under management have established operations in the centre. New commitments span asset management, banking, infrastructure investment, sustainability advisory, and legal services. Firms including Cantor Fitzgerald, BBVA, Arab Bank Switzerland Gulf Ltd, UBS Group, KKR, Julius Baer, and DLA Piper have all established or expanded their presence.

Ahmed Jasim Al Zaabi, Chairman of ADGM, stated that the commitments underscore Abu Dhabi's rising influence at the centre of global capital flows and the long-term confidence international institutions place in the clarity and scale of its vision.

FSRA Enhances Digital Assets Framework

The Financial Services Regulatory Authority (FSRA) of ADGM has implemented key enhancements to its digital assets framework, positioning Abu Dhabi at the forefront of institutional-grade virtual asset regulation. Since 2018, ADGM has been a pioneer, becoming one of the first jurisdictions globally to introduce a comprehensive regulatory framework for virtual assets. As of December 2025, ADGM's ecosystem includes over 20 regulated firms licensed to conduct activities involving virtual assets or fiat-referenced tokens.

A significant milestone was reached when Binance received a comprehensive global licence from the FSRA to operate in Abu Dhabi, with regulated activities commencing on 5 January 2026. Emmanuel Givanakis, CEO of the FSRA, stated that the authority continues to enhance its digital asset regulatory framework to remain forward-looking and responsive to the next wave of financial innovation, including tokenisation, DeFi, and AI-driven market participation.

VARA Establishes Comprehensive Dubai Framework

VARA, established in 2022, is responsible for regulating virtual asset-related financial services activities at the emirate level, excluding the DIFC. The framework comprises 13 bespoke regulatory booklets, with five compulsory regulations applying to all Virtual Asset Service Providers operating in Dubai, while eight additional regulations apply to those conducting specific activities.

VARA recognises that virtual asset businesses may use complex legal structures extending beyond UAE geographical limits and may employ arrangements beyond current UAE legal system availability, such as Web3 companies with decentralised governance models.

New Capital Markets Law Extends Federal Oversight

The Capital Markets Law, effective from 1 January 2026, brings virtual assets within the federal capital markets regulatory perimeter, defining them as financial products and granting the Capital Market Authority regulatory authority over virtual asset trading and transactions. Trading a virtual asset in the UAE is now prohibited unless it has been accepted onto the official list maintained by a CMA-licensed platform operator and registered with the CMA.

The UAE's regulatory progress is strengthened by the coordinated efforts of the Dubai Financial Services Authority, FSRA of ADGM, and the UAE Securities and Commodities Authority, providing comprehensive and globally aligned financial governance systems.

Economic Resilience Underpins Growth Trajectory

The UAE closed 2025 in a position of exceptional financial strength, with Dubai and Abu Dhabi outperforming many international markets through diversified economic activity, deepening institutional maturity, and an expanding fintech ecosystem. Michael Ayres, CEO of Rostro Group, noted that 2025 proved to be a defining year in the UAE's evolution into a global financial powerhouse, with sustained investment in market infrastructure and digital connectivity positioning Dubai and Abu Dhabi firmly alongside the world's leading financial centres.

The forthcoming digital dirham will further enhance payment efficiency, enable programmable financial transactions, and reduce settlement friction for both retail and institutional users. The Dubai Economic Agenda D33 specifically aims to position Dubai among the world's top four global financial centres, whilst Abu Dhabi's vision is supported by its status as home to sovereign wealth funds managing nearly US$2 trillion.