Asan Tata— November 3, 2026The UAE’s capital markets regulator is planning a new Investor Protection Fund, along with stronger safeguards for difficult market conditions. The plan was set out by Waleed Saeed Al Awadhi, chief executive of the Capital Market Authority (CMA), in an interview published by Khaleej Times on 3 November 2026. For anyone who invests through a UAE-licensed broker, fund or adviser, the announcement matters, but it is important to be clear about its status: the fund is planned, not yet launched, and its rules have not been published.
Quick Answer
The UAE Capital Market Authority (CMA) plans to establish an Investor Protection Fund and add safeguards for exceptional market circumstances, as part of its 2027 priorities. The plan also includes better complaints, appeals and amicable settlement procedures, and a possible framework for retail and fractional sukuk. No start date, coverage limit or eligibility rule for the fund has been announced yet, so investors cannot claim from it today. The CMA’s wider 2026 record shows tougher enforcement: Dh12.9 million in financial penalties and about Dh1.2 billion refunded to clients in the first nine months of 2026.
What the CMA Announced
The announcement came in an interview with the CMA’s chief executive, Waleed Saeed Al Awadhi, published by Khaleej Times on 3 November 2026. He said the authority is planning to establish an Investor Protection Fund and introduce new safeguards for exceptional market circumstances, to strengthen investor confidence and broaden participation in the capital markets.
The proposed measures also include improvements to complaints, appeals and amicable settlement procedures. In plain terms, the process for raising a problem with a licensed firm, challenging a decision, or settling a dispute without going to court should become clearer and easier to use. No detailed rules for these changes have been published yet.
Al Awadhi summed up the regulator’s approach: “Protecting retail investors requires more than regulatory enforcement. It means ensuring investors have access to reliable information, understand the risks they are taking and have effective channels to raise concerns when things go wrong.”
Why an Investor Protection Fund Matters
An investor protection fund is a safety net. In markets that have one, it can compensate investors in certain cases when a licensed firm fails or client money goes missing. The exact protection depends on the rules of each fund, and those rules differ from country to country. Some funds cover only cash and securities held with a failed firm, up to a fixed limit.
For UAE investors, the key point is that the CMA already has the legal power to create such a fund. Federal Decree-Law No. 32 of 2025 and Federal Decree-Law No. 33 of 2025 replaced the Securities and Commodities Authority (SCA) with the Capital Market Authority from 1 January 2026. Under that framework, the CMA is empowered to establish an investor protection fund, alongside a separate settlement guarantee fund for market transactions. The 3 November announcement is the first public signal that the CMA now plans to use that power.
Until the fund’s own regulations appear, no investor should assume they are covered. The CMA has not announced which losses the fund would cover, what the maximum payout would be, which firms would pay into it, or when it would start operating. Anyone who tells you otherwise is guessing.
What Is Confirmed So Far
Here is what can be stated from the announcement and the CMA’s published record:
| Item | Status |
|---|---|
| Investor Protection Fund | Planned; rules not yet published |
| Safeguards for exceptional market circumstances | Planned; details not yet published |
| Complaints, appeals and amicable settlement improvements | Proposed; details not yet published |
| Retail and fractional sukuk framework | Under examination; not yet approved |
| Draft regulations (systemically important entities, division of public joint stock companies, instant licensing) | Targeted for completion by end of 2026 |
| CMA’s three priorities for 2027 | Investor protection, broader market access, digital transformation |
The draft regulations targeted for completion by the end of 2026 cover systemically important entities, the division of public joint stock companies, and instant licensing. In 2027, the authority also plans to review the rules for securities offerings and issuers, including foreign issuers, and the types and classes of securities that can be issued.
What the Plan Does Not Decide Yet
The gaps matter as much as the announcement. The CMA has not said how the Investor Protection Fund would be financed, who could claim from it, or what the payout limits would be. It has not said whether the fund would cover investment losses caused by market falls. In most countries, protection funds do not cover normal market losses at all. They cover failures of the firm holding your money, not bad investment results. Readers should not expect the fund to insure them against a falling market.
The same caution applies to the other proposals. The framework for retail and fractional sukuk is only “under examination”, with no minimum amount, product rule or launch date given. The new rules for family businesses and smaller firms are proposed measures “subject to final approval and implementation”. Treat every one of these items as a plan until the CMA publishes the final regulation.
The 2026 Record Behind the Plan
The announcement does not come out of nowhere. The CMA’s own figures for the first nine months of 2026, reported by the Emirates News Agency (WAM) in late October 2026, show a regulator that has been active on enforcement and investor education at the same time:
| Measure (January to September 2026) | Figure |
|---|---|
| Financial penalties imposed | Dh12.9 million |
| Money refunded to clients | About Dh1.2 billion |
| Investor awareness activities | 224, including 5 dedicated campaigns |
| New financial influencers registered | 88 (total 198 by end of September) |
| Complaints handled | 192 per cent more than the same period of 2025 |
| Licensed companies | Up 43 per cent year on year |
| Licensed professionals | Up 64 per cent year on year |
| Total trading value | Dh408 billion |
The refund figure deserves a closer look. About Dh1.2 billion was returned to clients in the first nine months of 2026, compared with Dh8 million in the same period of 2025. That jump suggests the CMA’s complaint and enforcement work is reaching real cases, not just producing warnings. The number of financial fines rose 246 per cent year on year, while their total value rose 23 per cent to Dh12.9 million. The CMA’s chief executive said the focus is “timely intervention, effective enforcement and holding those responsible for violations accountable”, adding that the objective is to deter misconduct and protect investors, “rather than simply increase the number of penalties imposed”.
Investor education is the other half of the record. The CMA ran 224 awareness activities in nine months, including five campaigns on financial literacy and spotting market risks. It also registered 88 new financial influencers, taking the total to 198 by the end of September. A registered influencer is one the regulator can hold to standards, and readers should still treat any influencer tip as marketing, not advice.
What It Means for Family Businesses and Smaller Firms
The CMA is also working to open capital markets to family-owned businesses and small and medium-sized enterprises (SMEs). It is developing resolutions to regulate private placements of securities by private joint stock companies and businesses operating in free zones. A private placement lets a company raise money from a limited group of investors without a full public listing.
For a family business, that could mean a new way to raise funds without taking on the full cost and disclosure burden of a public listing. For investors, it could mean access to a wider set of companies. The CMA says the goal is to broaden financing options for companies that may not yet be ready for a public listing, while keeping governance and disclosure standards intact. Al Awadhi said: “For family businesses and SMEs, the objective is to provide appropriate pathways to capital market financing while ensuring companies are prepared for the responsibilities of public ownership.” These measures are still proposals and need final approval before they take effect.
Retail and Fractional Sukuk: Smaller Investments
One proposal that could matter to ordinary savers is the framework for retail and fractional sukuk. A sukuk is an Islamic finance certificate, similar in purpose to a bond, that gives the holder a share in an underlying asset rather than interest. Today, many sukuk products are aimed at large investors, with high minimum amounts.
A fractional sukuk framework would let residents buy smaller pieces of a sukuk, which could open fixed-income investing to people with smaller amounts of money. That is attractive in a market where many residents want steady, Sharia-compliant returns but cannot meet institutional minimums. Again, the framework is only under examination. No product, provider, return rate or launch date has been announced, and no return on any sukuk should ever be treated as guaranteed.
How Investors Can Protect Themselves Now
While the fund and the new rules are still being prepared, investors can take practical steps today:
1. Check the licence before you invest
Deal only with firms licensed by the CMA, and verify the licence on the CMA’s official register before you transfer money.
2. Keep your own records
Save every contract, statement, payment receipt and message from your broker or adviser. If you ever need to complain, these records are your evidence.
3. Treat tips as marketing
A social media tip, even from a registered influencer, is not financial advice. Check the product yourself and understand what you could lose before you invest.
4. Use the complaints channel
If a licensed firm has treated you unfairly, raise the complaint with the firm first, in writing, then with the CMA if it is not resolved.
5. Never invest borrowed money you cannot afford to lose
No protection fund covers a market loss. If an investment falls in value because the market moved, that loss stays with the investor.
Frequently Asked Questions
Is the UAE Investor Protection Fund already operating?
No. The CMA has said it plans to establish the fund. Its rules, funding, coverage limits and start date have not been announced. Until the official regulation is published, the fund does not exist as something investors can claim from.
Will the fund cover losses if my investments fall in value?
Almost certainly not. Protection funds in other markets cover failures of the firm holding your assets, not market losses. The CMA has not published its own coverage rules, so this cannot be confirmed yet, but investors should not expect compensation for normal market falls.
Who runs the Capital Market Authority?
The CMA is the UAE’s federal capital markets regulator. It replaced the Securities and Commodities Authority on 1 January 2026 under Federal Decree-Law No. 32 of 2025 and Federal Decree-Law No. 33 of 2025. Its chief executive is Waleed Saeed Al Awadhi.
What is a fractional sukuk?
A fractional sukuk would let an investor buy a small part of a sukuk instead of a whole unit. The CMA is examining a framework for retail and fractional sukuk, which could let residents access fixed-income investments with smaller amounts of money. No product or launch date has been announced.
How do I complain about a licensed firm?
Complain to the firm first, in writing, and keep copies of everything. If the matter is not resolved, raise it with the CMA. The CMA’s 2026 record shows about Dh1.2 billion refunded to clients in the first nine months of the year.
Does this article give financial advice?
No. This article is general information about a regulatory announcement. It is not investment advice, and it does not recommend any product, firm or strategy. For decisions about your own money, speak to a licensed financial adviser.
Asantata34 is an independent informational website, not affiliated with the UAE government or any regulator mentioned. Figures in this article come from the CMA chief executive’s interview with Khaleej Times on 3 November 2026 and from WAM reports of the CMA’s nine-month 2026 figures. Always verify critical details with the CMA’s official publications before acting.
Last Updated: 3 November 2026
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