Dubai’s ruler, Sheikh Mohammed Bin Rashid Al-Maktoum, has just celebrated his 20th anniversary on the throne. Now, the monarch—who is also the Vice President and Prime Minister of the UAE—wants to elevate the Gulf state to the same level as financial centers such as Hong Kong or Singapore.

More Power for Financial Dupervision

On January 1, 2026, two federal decree laws came into effect in the UAE to strengthen and modernise capital market regulation. These laws expand the independence and powers of the Capital Markets Authority to ensure the stability, efficiency, and competitiveness of the financial markets while adhering to international standards.

The new legal framework aims to reinforce supervision, governance, risk control, and consumer protection, promotes access to financial services and financial literacy, and takes digital developments into account. Additionally, the authority is granted broad intervention and sanctioning powers in cases of regulatory violations. Compliance with the guidelines is based on recommendations from international institutions such as the International Organization of Securities Commissions (IOSCO), the World Bank, and the International Monetary Fund (IMF).

Regarding administrative sanctions, the decree laws foresee an increase in fines proportionate to the severity of the violation. They authorise the Capital Markets Authority to impose fines of up to ten times the profit gained from the violation or up to ten times the value of the avoided loss.

DIFC: More Freedom for Crypto Tokens

The Dubai Financial Services Authority (DFSA), which supervises the international financial center DIFC, will introduce new crypto regulations on January 12, 2026. This shifts more responsibility for assessing the suitability of crypto tokens onto the firms themselves. The previously mandated list of approved tokens will be abolished. The focus is on increased transparency, improved risk management, and clear accountability of market participants.

Entities based in the DIFC will be required to establish robust internal audit and governance frameworks, document the suitability of crypto tokens, and continuously monitor them for material changes. This new model replaces the earlier practice of relying on tokens pre-approved by the DFSA. Tokens are digital assets based on an existing blockchain (e.g., Ripple). «For businesses operating or seeking to operate in the DIFC, this means a more transparent, predictable, and structured pathway for crypto token activities,» the DIFC states on its homepage.

The UAE competes with other crypto hubs such as Zug, Singapore, and Hong Kong for the best financial center in the world of Web3.

E-Invoice is Coming

Not yet mandatory, but on a voluntary basis, companies can switch to electronic invoicing starting July 1, 2026. After a six-month pilot phase during which businesses in the Gulf emirates are given time to adjust their accounting accordingly, the phased mandatory introduction of e-invoicing will follow:
• From January 1, 2027, large enterprises with revenues exceeding 50 million dirhams (13.65 million dollars) must switch to e-invoicing.
• From July 1, 2027, the days of loose paper and PDF invoices will also end for SMEs with revenues under 50 million dirhams.

From then on, companies will be legally obligated to submit machine-readable electronic invoices via accredited service providers. The goal is to advance digital transformation and ensure the collection of value-added tax (VAT). Since 2018, the UAE has levied a VAT of 5 percent. The IMF had called for such an indirect tax from the Arab oil states to offset potential revenue losses during periods of declining oil prices.