How the UAE Just Changed the Rules of Finance with the New CBUAE Law
A significant development has just occurred in the UAE’s financial sector, and it could alter the way banks, insurers, and even tech companies conduct their business. On September 8, 2025, the UAE issued the New Central Bank of the UAE (CBUAE) Law, officially called Federal Decree Law No. 6 of 2025. It came into effect on September 16, 2025, and replaces the older laws from 2018 and 2023.
So, what makes this law so important? And why is everyone, from banks to app developers, paying close attention? Let’s find out.
A Bigger Circle: Who’s Included Now
The New CBUAE Law has one main goal: to consolidate all financial activities under a single system. Before, banks, insurers, and payment companies were governed by separate rules. Now, they all fall under one big umbrella.
But that’s not all. The law also adds new players to the circle. For the first time, it includes things like:
Open Finance Services, where customers can share financial data safely across apps.
Virtual Asset Payments, such as crypto-based payment services.
Insurance and Reinsurance, including professions like brokers, agents, and actuaries.
In short, if you handle money, whether through a bank, a payment app, or even a digital token, the CBUAE now wants to make sure you follow the same high standards.
And here’s the twist. The tech companies that enable financial services are now in scope, too. That’s right. Even if a company doesn’t handle money directly but provides the technology that makes it possible, it may still need a license.
Article 62: The Game-Changer
One section of the new law is already making waves: Article 62.
It says that anyone who carries out, offers, or even helps to enable a financial service, no matter the technology used, must be licensed by the CBUAE. That includes platforms, decentralized apps (dApps), and protocols used in digital finance.
Imagine a small fintech startup that builds an app connecting users to different banks. Even if it doesn’t hold deposits or process payments directly, it’s still part of the financial system. Under Article 62, the startup must now apply for a license.
This part of the law is broad, and some might say intentionally so. The CBUAE wants to stay ahead of emerging technologies like DeFi (Decentralized Finance) and crypto payments. As financial services get more digital, the UAE doesn’t want any gaps in oversight.
But there’s still a bit of mystery here… the exact details of how this rule will work will come later, in implementing regulations. Businesses are waiting and watching closely.
Insurance Joins the Club
Another big change is how the law treats insurance. In the past, insurance companies were governed by a different law. Now, they’re fully part of the CBUAE system.
This means insurers, reinsurers, brokers, and agents will all follow the same style of licensing, supervision, and consumer protection rules as banks and payment providers.
Why does that matter? It brings consistency and fairness. Whether you’re buying a policy, making a payment, or taking a loan, you’ll be protected by the same unified standards.
The Price of Breaking the Rules
The new law doesn’t just give more power to the CBUAE; it also brings tougher penalties.
Running a financial business without a license could mean jail time or fines between AED 50,000 and AED 500 million.
The maximum administrative fine jumped from AED 200 million to AED 1 billion.
Even individual executives can face fines up to AED 5 million for serious violations.
And anyone promoting financial activities without approval now faces a minimum fine of AED 1 million.
The message is clear: operate properly or pay the price.
A Grace Period But Not Forever
Don’t panic just yet. The law gives affected companies one year, until September 16, 2026, to sort out licenses and meet all requirements.
That means businesses have some time to adjust. But those who ignore it might find themselves on the wrong side of the law next year.
Will everyone manage to comply in time? That’s the cliffhanger regulators and the market are watching closely.
The Bottom Line
The New CBUAE Law is a major step toward a unified, modern, and technology-ready financial system in the UAE. It expands who must be licensed, raises penalties, protects customers, and brings both banks and insurers under one clear rulebook.
But perhaps the biggest story is still unfolding: how this law will shape the future of fintech and digital finance in the UAE. One thing’s for sure: as the clock ticks toward September 2026, the financial world will be watching… and preparing.
