The Financial Services Regulatory Authority of Abu Dhabi Global Market has released its annual report for 2024, highlighting its significant regulatory achievements and reaffirming its commitment to creating a world-class regulatory environment for financial services.
In 2024, the financial services sector within Abu Dhabi Global Market experienced consistent growth, with the number of licensed financial services firms authorized by the authority increasing by 30%, reaching a total of 272 companies compared to the previous year. This represents the largest annual growth recorded to date.
Innovation remained a key focus for the Financial Services Regulatory Authority in 2024, particularly in the realm of digital assets, where it introduced a dedicated regulatory framework for fiat-backed stablecoins, a specific category within stable currencies.
The new regulations set clear standards for reserve quality, governance, and redemption rights to ensure the protection of users of fiat-backed digital stablecoins.
By categorizing the issuance of fiat-backed stablecoins as a regulated financial activity, the authority has strengthened its digital asset framework, solidifying Abu Dhabi Global Market’s position as a leading hub for responsible financial innovation.
Notably, there have been proposals to enhance the regulatory framework by aligning it more closely with the core principles of effective banking supervision, as outlined by the Basel Committee on Banking Supervision, which have been implemented subsequently.
Additionally, a comprehensive framework for reporting violations has been launched across Abu Dhabi Global Market to promote transparency and integrity. In terms of financial crime, the authority has collaborated with relevant bodies and ministries within the country, playing an active role by providing technical input that has helped strengthen anti-money laundering and counter-terrorism financing controls. These efforts substantially contributed to the United Arab Emirates’ removal from the Financial Action Task Force’s (FATF) grey list in 2024.
These legislative and regulatory initiatives, among others, have significantly improved the regulatory landscape, ensuring resilience, transparency, and innovation within Abu Dhabi Global Market. The Financial Services Regulatory Authority has closely collaborated with local and international partners to craft robust regulations.
The authority also emphasized cross-border collaboration and supported national policy objectives. Moreover, it has invested in talent development, including the ‘Yah’ program aimed at UAE nationals, which integrates technical training with personal skill development and career guidance.