UAE Central Bank Law Changes: Key Reforms Under Federal Decree-Law No. (6) of 2025

Understanding the UAE Central Bank Law Changes — October 2025

Estimated reading time: 10 minutes

Key Takeaways

• Federal Decree-Law No. (6) of 2025 redefines currency, stability, and consumer protection in the UAE.
• The Central Bank now has proactive oversight powers, including early intervention and automated fines.
• Financial institutions face fines up to ten times the infraction value and public disclosure of penalties.
• New mandates for universal financial access and centralized complaint handling strengthen consumer rights.
• Entities must notify the Central Bank of all material changes—mergers, new lines, or acquisitions—to avoid noncompliance.

Setting the Stage: The Importance of Robust Central Banking Regulation

In a landscape where global finance is ever more interconnected, the UAE has taken a decisive step with its latest decree. On 8 September 2025, the UAE issued Federal Decree-Law No. (6) of 2025, replacing all prior central bank laws. The law entered into force on 16 September 2025 and repeals Federal Decree Law No. (14) of 2018 (as amended).This reform cements the UAE’s role as a financial innovator and regulator of the highest order.

The Scope and Purpose: At the Core of the Law

The decree’s reach extends to every corner of the UAE financial ecosystem. Licensed banks, insurers, and lenders now operate under one master statute. Its three core objectives are:

• Currency Stability: Preserve the value and integrity of the UAE dirham across domestic and international markets.
• Financial Stability: Enhance the regulatory architecture to pre-empt and mitigate systemic risks.
• Consumer Protection: Centralize complaint handling and curb abusive practices to safeguard individuals. Consumer protection is strengthened, with unified complaints and dispute-resolution services for banks and insurers operated through the Sanadak framework.

Unpacking the Major Practical Provisions and Changes

Expanded Oversight Powers

The Central Bank gains proactive authority to intervene at the first sign of institutional stress.

Administrative Fines

Fines now may reach ten times the infraction value (Art. 168(l)), with immediate enforcement and automatic debiting (Art. 168(4))—even amid challenges—and public disclosure on the Central Bank’s website (Art. 168(7)).

Guarantees for Credit

Credit practices must align with prudential and consumer-protection standards; the CBUAE may impose collateral/guarantee requirements by regulation depending on product and risk.

Universal Financial Access

The framework advances financial inclusion and access objectives across the Emirates, supported by the CBUAE’s regulatory and consumer-protection powers.

Notification of Material Changes

Every merger, new product line, or structural shift requires prompt notice to the Central Bank. Licensed institutions and auditors must promptly notify the CBUAE of any ‘Matter of Significance’ affecting activities, structure or overall position, and of violations of applicable laws/regulations.

Complaint System Centralization

A unified channel for consumer grievances replaces fragmented pathways, ensuring efficient resolution.

Early Intervention Regime

Borrowing global best practices, the regulator can now act before issues escalate.

Forex and Reserve Management

Statutory backing now underpins the Central Bank’s long-standing, diversified foreign exchange reserve strategy.

Disclosure & Transparency

Public “naming and shaming” of violators leverages market discipline to enforce compliance.

Updated Licensing and Regulatory Compliance

The Central Bank remains the gatekeeper for all financial and insurance licenses. Noncompliance now carries exponentially higher risks. Detailed criteria are outlined on the Central Bank licensing page.

Material events—mergers, asset acquisitions, shifts in business model—must be reported without delay to maintain transparency and oversight.

Practical Implications for Regulated Entities

Organizations must:

• Undertake thorough internal audits and upgrade risk frameworks and compliance systems.
• Invest in technology and training to meet centralized complaint-handling requirements.
• Revise public communications to anticipate higher reputational stakes from penalty disclosures.

Context Within UAE Federal Law

These banking reforms intersect with:

• UAE Federal Companies Law
• UAE Labour Law Reforms
• Gratuity and Employee Rights in the UAE
• UAE VAT and Corporate Tax Law

Current Status: Full Force and Prevailing Legislation

Federal Decree-Law No. (6) of 2025 is the sole governing statute, superseding all prior central bank laws. Official texts are available via the UAE Government Legislation Portal.

Conclusion: The Dawn of a New Regulatory Future

The UAE central bank law changes set a new benchmark for regulatory excellence. Stakeholders must move swiftly to align compliance, risk management, and consumer engagement with this forward-looking framework. For an authoritative text, consult the official legislation and secure expert legal guidance.

Frequently Asked Questions

What is the effective date of Federal Decree-Law No. (6) of 2025?

The decree took effect on 16 September 2025 by Presidential mandate.

Who must comply with the new law?

All UAE-licensed banks, insurers, and specialized financial institutions operating within UAE jurisdiction.

How high can administrative fines go?

Fines can reach up to ten times the value of the violation, with immediate debiting and public disclosure.

Where can I access the full text?

The complete legislation is available at the UAE Legislation Portal.