UAE Strengthens Financial System Excellence

UAE Aligns with CRS 2.0 to Elevate Global Transparency

The Ministry of Finance has announced the UAE’s commitment to implementing the amendments to the Common Reporting Standard (CRS 2.0) issued by the Organisation for Economic Co-operation and Development (OECD) under the Automatic Exchange of Information framework. The new standard will come into effect on January 1, 2027, with the first exchange of information beginning in 2028.

This decision reflects the UAE’s advanced global position in financial competitiveness and its dedication to maintaining transparency and high standards of governance. It reinforces the country’s role as a responsible and progressive financial hub committed to aligning with global best practices. The adoption of CRS 2.0 ensures that the UAE remains at the forefront of global cooperation in financial reporting and tax transparency.

What CRS 2.0 Represents for the UAE

The updated CRS 2.0 builds on the existing framework established under Federal Decree No. 48 of 2018 and Cabinet Resolution No. 93 of 2021. The revised standard expands its scope to include electronic money, central bank digital currencies, and certain crypto-asset-related activities. It also introduces enhanced auditing and reporting measures to ensure that rapid growth in digital assets and financial innovation does not undermine tax transparency or financial integrity.

By adopting CRS 2.0, the UAE showcases its readiness to adapt to the evolving global financial environment. It positions itself as a nation that balances innovation with compliance. The move sends a strong signal to international investors that the UAE upholds robust governance, reliability, and accountability in its financial system.

A Step Forward in Strengthening Global Competitiveness

This strategic step is not only about regulatory compliance but also about strengthening the UAE’s position as a destination for global investment. By aligning the CRS 2.0 timeline with the Crypto Asset Reporting Framework (CARF), the UAE demonstrates its forward-thinking approach to managing both traditional and digital financial systems.

These reforms ensure that the UAE continues to attract foreign investments while adhering to the highest international standards of transparency. For global investors and multinational corporations, this means greater confidence in the UAE’s financial environment and assurance of long-term stability.

Reinforcing the UAE’s Position as a Financial Hub

The implementation of CRS 2.0 fits within the UAE’s broader goal of becoming a leading global financial center. It reflects the country’s commitment to excellence in financial governance, innovation, and investor accessibility. The UAE’s financial system is increasingly recognized for its transparency, strong regulatory oversight, and adherence to international norms.

Businesses and investors operating in the UAE benefit from a predictable and stable environment that aligns with international regulatory expectations. This alignment not only simplifies cross-border transactions but also strengthens the UAE’s appeal as a base for regional and global financial operations.

Islamic Finance and Treasury Sukuk: A Symbol of Stability

In addition to tax transparency measures, the Ministry of Finance, in cooperation with the Central Bank of the UAE, successfully completed the October 2025 auction of UAE dirham-denominated Islamic Treasury Sukuk (T-Sukuk), with a total issuance of AED 1.1 billion. This transaction is part of the 2025 T-Sukuk issuance program.

The auction witnessed strong investor participation, with total bids reaching AED 4.57 billion, an oversubscription of 4.2 times. The new 2-year tranche maturing in October 2027 recorded a yield to maturity (YTM) of 3.49%, while the tranche maturing in May 2030 achieved a YTM of 3.65%. These results represent a tight spread of up to seven basis points above comparable US Treasuries, underscoring strong investor confidence in the UAE’s creditworthiness and Islamic finance framework.

The listing of these Sukuk on Nasdaq Dubai enhances secondary market accessibility for investors. The Islamic T-Sukuk program also supports the development of the UAE’s dirham-denominated yield curve and offers safe, Sharia-compliant investment options to a wide range of investors.

The Retail Sukuk Initiative: Expanding Financial Inclusion

In a move to expand access to government-backed investments, the Ministry of Finance signed a cooperation agreement with Abu Dhabi Islamic Bank (ADIB), making it the first bank to join the newly launched Retail Sukuk initiative. This program allows UAE citizens and residents to invest in Islamic Treasury Sukuk through modern digital platforms.

The ADIB “Smart Sukuk” platform enables individuals to invest in fractional Sukuk in small denominations starting from AED 4,000, with increments of AED 4,000 up to AED 28,000 per transaction. The entire process, from registration to KYC verification, can be completed online using an Emirates ID or UAE PASS.

This initiative promotes financial inclusion and provides individuals with an opportunity to participate in safe, government-backed investments. By democratizing access to Sukuk, the Ministry aims to cultivate a culture of saving and responsible investment among UAE residents.

Younis Haji AlKhoori, Under-Secretary of the Ministry of Finance, emphasized that this partnership with ADIB marks a major step in implementing the Retail Sukuk initiative. He stated that the collaboration aligns with the leadership’s vision of economic empowerment and sustainable investment. He added that through this digital and Sharia-compliant platform, the Ministry is providing individuals with a simple, secure, and transparent investment experience designed to support long-term financial stability for families and communities.

Why These Reforms Matter

The UAE’s decision to adopt CRS 2.0 and strengthen its Islamic finance offerings demonstrates its readiness for the next generation of global finance. These reforms reflect a well-balanced approach—combining innovation, inclusivity, and strong regulatory governance.

Key benefits include:

Building investor confidence through transparency and governance.
Attracting foreign capital by aligning with international standards.
Deepening local financial markets through Sukuk issuances.
Empowering residents to invest through inclusive digital platforms.
Strengthening cooperation with global organizations such as the OECD.

These combined measures contribute to a stronger, more diversified, and resilient financial system that supports both economic growth and social development.

The Road Ahead

As the UAE prepares for the official implementation of CRS 2.0 in 2027, it will continue to focus on building the infrastructure required to manage new data and reporting systems. The alignment with CARF and other international frameworks will further enhance the country’s ability to handle evolving financial technologies and cross-border exchanges of information.

The Retail Sukuk initiative will also play an important role in shaping a more inclusive financial landscape, enabling individuals to participate in the UAE’s economic growth story. Meanwhile, continued cooperation between the public and private sectors will be crucial in developing innovative financial instruments that promote sustainability, savings, and long-term prosperity.

Conclusion

The UAE’s commitment to financial transparency, technological adaptation, and inclusive investment marks a significant milestone in its journey toward excellence. By adopting CRS 2.0, enhancing its Islamic finance ecosystem, and empowering citizens through digital investment platforms, the country is demonstrating that it is not just keeping pace with global standards—it is setting them.

Through these forward-thinking reforms, the UAE is reaffirming its position as a world-class financial hub, one that thrives on integrity, innovation, and inclusion. As global finance continues to evolve, the UAE stands ready to lead with a system that is transparent, sustainable, and built for the future.

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