Central Bank of the UAE Partners with Vermeg to Develop National Central Securities Depository

This strategic partnership aims to enhance the UAE's financial infrastructure, making it more competitive on a global scale.

• 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 initiative focuses on improving operational efficiency and liquidity management for national debt and Sukuk.
• The CSD is expected to support the UAE's growing debt capital market, projected to exceed $350 billion in 2026.

• The CBUAE has the authority to establish central securities depositories under Federal Decree-Law No. (6) of 2025, reflecting the rapid growth of UAE capital markets.
• The debt capital market is increasingly driven by Sukuk issuance, with diversification efforts aimed at attracting more investment.
• Previous initiatives include a MoU with Dubai Finance Department to develop dirham-denominated bonds, indicating a broader strategy for financial innovation.

The Central Bank of the UAE's decision to partner with Vermeg marks a significant step in the evolution of the nation's financial infrastructure. By establishing a Central Securities Depository (CSD), the CBUAE aims to streamline the management and settlement of national debt and Sukuk, which are crucial for the UAE's economic landscape. The CSD will integrate both digital and traditional assets, enhancing liquidity management and operational efficiency in line with international standards.

This move is particularly relevant given the projected growth of the UAE's debt capital market, which is expected to surpass $350 billion in 2026. The increasing issuance of Sukuk, a form of Islamic finance, is a key driver of this growth. By creating a robust CSD, the CBUAE is not only addressing the immediate needs of the market but also positioning the UAE as a global financial hub. This initiative is expected to attract more foreign investment, as it enhances investor confidence through improved transparency and efficiency.

Statements from CBUAE Assistant Governor Saif Humaid Al Dhaheri highlight the importance of this initiative in fostering market growth and bolstering investor trust. Vermeg Chairman Badreddine Ouali emphasized the company's extensive experience with central banks worldwide, suggesting that this partnership is built on a foundation of proven expertise. The collaboration aims to ensure that the CSD meets international standards, which is critical for attracting global investors.

Moreover, the CSD will complement existing infrastructures in Dubai, such as the Dubai CSD and Nasdaq Dubai. This integration is expected to reduce costs and enhance liquidity, making it easier for investors to access a diversified portfolio of assets. As a result, residents of Dubai may find expanded opportunities for investment, aligning with the emirate's ambitions to solidify its status as a leading financial center.

In summary, the establishment of a CSD in the UAE is not just a technical upgrade; it represents a strategic initiative to enhance the country's financial ecosystem, attract investment, and ensure resilience in the face of global economic challenges.

• Investors: Increased access to a wider range of investment opportunities in national debt and Sukuk.
• Financial Institutions: Banks and asset managers will benefit from improved operational efficiencies in asset management and settlement processes.
• Regulators: Enhanced oversight capabilities and compliance with international standards will support regulatory frameworks.

• Market Reactions: Keep an eye on how financial markets respond to the announcement and subsequent developments in the CSD.
• Investment Inflows: Monitor changes in foreign investment levels as the CSD becomes operational, indicating increased confidence in the UAE market.
• Regulatory Updates: Watch for any new regulations or guidelines issued by the CBUAE that may impact the functioning of the CSD.