The President of the UAE, Sheikh Mohamed bin Zayed Al Nahyan, has enacted Federal Decree Law No (6) of 2025.

This legislation addresses the Central Bank of the UAE (CBUAE) and regulates financial and insurance institutions.

The decree aims to enhance the independence of the CBUAE, fortify the stability and competitiveness of the nation's financial sector, and align regulatory measures with international standards.

Key responsibilities outlined include ensuring currency stability, protecting the financial system, and effectively managing foreign reserves.

Under this new law, the central bank’s primary duties extend to implementing monetary policy, supervising licensed financial entities according to global norms, issuing regulations, and managing financial market infrastructure.

Additionally, it designates the central bank as a "resolution authority," authorizing intervention in distressed financial institutions through management appointments, restructuring, or liquidation processes.

Enhanced Authority for CBUAE and Consumer Protection

The law also enhances consumer protection by consolidating complaint procedures for banks and insurers under an independent entity known as Sanadak. It establishes specialised judicial committees whose decisions are final and enforceable for disputes up to Dhs100,000.

This legal framework requires credit facilities to match customers' incomes to prevent irresponsible lending practices.

Regulators are empowered with early intervention capabilities to demand recovery plans or enforce higher capital requirements on struggling entities.

The legislation increases administrative fines-penalties can now be tenfold of a violation's value or any unjust gains-and automatically debits these from accounts held with CBUAE or its licensed institutions.

Before a final judicial decision is reached, reconciliation with violators is possible. Additionally, fine determinations may be publicized to promote transparency in governance.