CMA introduces change-of-control approval requirements for onshore financial businesses

The UAE's financial regulatory landscape is divided between the federal onshore regime and the country's financial free zones. Businesses operating onshore may fall under the supervision of the Federal Capital Market Authority (CMA), while entities established in the Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM) are subject to their respective regulatory frameworks.

In 2026, the UAE introduced a comparable framework for CMA-regulated onshore entities, expanding the regulatory approvals that may need to be considered when ownership of a financial services business changes.

For a locally established CMA-licensed business, regulatory approval may be required before an investor acquires or increases a significant ownership interest. Prior CMA approval is required where a person proposes to become a Controller by acquiring an interest of at least 10% in the licensed person. Approval is also required where an existing Controller proposes to increase its ownership beyond either the 30% or 50% thresholds.

An applicant seeking approval must submit the prescribed information to the CMA. The authority may approve the change, approve it subject to conditions or reject the application. The CMA is generally required to assess a complete and accurate application within 90 days, although that review period may be extended where the authority considers additional time necessary.

Change of control regulation does not apply only when shares are being acquired. An existing Controller of a CMA-licensed entity may also have a notification obligation when reducing or disposing of its interest.