UAE Central Bank Partners with Vermeg to Develop Central Securities Depository for National Debt and Sukuk Markets

This initiative positions the UAE as a competitive player in global capital markets, particularly in the growing Sukuk sector.

• On April 13, 2026, the Central Bank of the UAE (CBUAE) appointed Vermeg as the lead technology partner for a new Central Securities Depository (CSD).
• The CSD aims to modernize post-trade operations for government debt securities and Sukuk, enhancing liquidity management.
• This move supports the UAE's broader financial innovation strategy, including readiness for digital assets.

• The UAE is investing heavily in advanced financial infrastructure to solidify its status as a global financial hub.
• The outstanding UAE debt capital market was valued at USD 309 billion as of Q1 2025, with projections reaching USD 350 billion by the end of 2026.
• The CBUAE's initiative aligns with international standards, addressing the growing demand for efficient post-trade processing in both traditional and digital asset markets.

The appointment of Vermeg as the lead technology partner for the Central Securities Depository (CSD) marks a significant step in the UAE's financial evolution. The CBUAE's decision is driven by a need to modernize the infrastructure that supports the national debt and Sukuk markets, which are increasingly vital to the UAE's economic landscape.

As the global demand for Islamic finance grows, the UAE is positioning itself to capture a larger share of this market. The CSD will facilitate the recording, settling, and safekeeping of government debt securities and Sukuk, which are essential for attracting both domestic and international investors. By enhancing liquidity management and aligning with international standards, the CBUAE aims to bolster investor confidence and market efficiency.

Vermeg's expertise in post-trade and custody solutions is expected to play a crucial role in the development of the CSD platform. This partnership is not just about technology; it's about creating a robust financial ecosystem that can support future innovations, including digital assets. The CBUAE has emphasized the importance of integrating liquidity management across both digital and traditional custody, which reflects a broader trend in the financial sector towards digitization and efficiency.

The initiative also comes at a time when the UAE is actively pursuing financial innovation, including the launch of the world's first sovereign financial cloud platform. This strategic move is designed to attract international investment and enhance the UAE's competitiveness in the global capital markets. The CSD will serve as a backbone for the growing debt and Sukuk market, which is influenced by global standards and investor demands.

In summary, the establishment of the CSD is a proactive measure to ensure that the UAE remains at the forefront of financial innovation and market efficiency. It signals a commitment to modernizing the financial infrastructure, which is essential for sustaining growth in the capital markets and meeting the evolving needs of investors.

• Investors: Enhanced access to efficient trading and liquidity in debt and Sukuk markets.
• Financial institutions: Improved operational efficiency and reduced costs in post-trade processing.
• Regulatory bodies: Increased confidence in the integrity and efficiency of the capital markets.
• Technology firms: Opportunities for collaboration and innovation in financial technology solutions.

• Implementation timeline: Monitoring the progress of the CSD development will indicate how quickly the UAE can enhance its capital market infrastructure.
• Market response: Observing investor sentiment and trading volumes in the debt and Sukuk markets post-implementation will reveal the initiative's impact.
• Regulatory updates: Changes in regulations surrounding digital assets and Islamic finance could signal further shifts in the market landscape.