UAE cuts fees while lifting IPO charges

The UAE has abolished 15 capital-market fees while raising selected charges linked to public offerings, combining broad cost relief for financial firms with higher pricing for regulatory work on complex transactions.

The Capital Market Authority approved the changes after reviewing fees covering services and activities under its supervision. The overhaul is intended to simplify the charging structure, remove costs that no longer serve a regulatory purpose and improve services for licensed companies and financial professionals.

Charges for approving initial public offerings will rise from about $15,000 to $20,000, while renewal-related costs will increase from roughly $13,000 to $15,000. The higher fees represent a targeted increase rather than a general rise across the regulator’s services, with 15 other charges being eliminated.

The contrasting changes reflect the government’s effort to reduce routine administrative expenses while ensuring that issuers bear more of the cost associated with reviewing large and technically demanding capital-raising exercises. IPO approvals require scrutiny of prospectuses, financial statements, ownership structures, risk disclosures and investor-protection arrangements.

Waleed Saeed Al Awadhi, chief executive of the Capital Market Authority, said the regulator would continue to develop its fee framework as the market evolves. He said the review was designed to improve regulatory efficiency, reduce burdens on licensed companies and individuals, and support a more effective business environment.

The authority examined each charge against regulatory requirements, market developments and its operating model. Fees judged unnecessary were removed, while charges connected to services requiring greater supervisory resources were revised.

The decision comes during a wider transformation of the UAE’s onshore capital-market regime. The Capital Market Authority replaced the Securities and Commodities Authority at the start of 2026 under legislation that expanded the regulator’s independence, supervisory powers and investor-protection responsibilities.

The new framework strengthened rules governing securities offerings, disclosures, market conduct and the responsibilities of companies and advisers involved in fundraising. It also introduced clearer prospectus liability provisions, mechanisms for protecting investors and broader intervention powers for the regulator.

Those changes are intended to support deeper capital markets and give companies more routes to raise money beyond bank borrowing. Authorities have been encouraging family-owned businesses, government-linked enterprises and private companies to consider public listings, bonds, sukuk and investment funds as sources of long-term finance.

Abu Dhabi Securities Exchange and Dubai Financial Market have attracted a succession of offerings across energy, utilities, education, healthcare, property and consumer services. Government-related listings have played a major role in expanding market capitalisation and drawing international institutional investors, while private-sector participation remains a central policy objective.

Higher IPO approval charges are unlikely to represent a major portion of the total cost of going public. Issuers typically face much larger bills for investment banks, legal advisers, auditors, valuation specialists, public relations firms and exchange-related services. The regulatory increase may nevertheless be more noticeable for smaller companies considering comparatively modest offerings.

For financial intermediaries, the abolition of routine fees could partially offset higher costs in specialised areas. Brokers, asset managers, investment funds, advisers and other licensed operators are required to maintain regulatory approvals and use multiple supervisory services during their normal operations.

The authority has not presented the fee reduction as a loosening of oversight. The review instead separates charges considered necessary for effective supervision from those that can be removed without weakening market safeguards.

Fee reform has become part of a broader competitiveness drive across the UAE, where government departments have been digitising approvals, consolidating services and reviewing administrative charges. Lower recurring costs can help established firms and new market entrants, particularly when they must secure several licences and professional approvals.

At the same time, the rise in IPO-related charges signals that regulatory resources will remain concentrated on transactions carrying greater risks for investors and market confidence. Public offerings expose retail and institutional buyers to valuation, governance and disclosure risks, making detailed examination essential before securities can be marketed.