Key Regulatory Developments in the Middle East in the first half of 2026 you might have missed (but Rulefinder Marketing Restrictions – Asset Management hasn’t).
Kuwait – New institutional marketing exemption for foreign funds
In February 2026, the CMA published Resolution No. (18) of 2026 (the 2026 Resolution).
The 2026 Resolution includes the introduction of a new institutional marketing exemption, allowing a foreign fund to be marketed in Kuwait without having to comply with the licensing requirements and certain other provisions of the CML Bylaws, provided that it meets the following requirements:
marketing is limited to professional investors who meet the requirements of ‘professional clients by nature’ and does not extend to professional investors who are ‘professional clients by qualification’
a CMA-authorised ‘marketer’ must be appointed to undertake the marketing
an institutional marketing exemption permission must be obtained by the marketer from the CMA and announced in the Kuwait Official Gazette. The CMA will issue a marketing permission after receipt of all required information/documents and payment of the prescribed fee and will announce such permission in the Kuwait Official Gazette, after which marketing can take place
The scope of application of the 2026 Resolution remains to be confirmed in practice and local counsel expect further amendments will be made. Developments relating to the scope and practical implementation of the institutional marketing exemption is something we continue to track at aosphere.
United Arab Emirates – Replacement of the SCA and new capital markets framework
In January 2026, the UAE government published two federal decree laws, Federal Decree-Law No. (32) of 2025 and Federal Decree-Law No. (33) of 2025, which establish a new authority, the Capital Market Authority (CMA), and provide a revised regulatory framework for the capital markets sector. Both laws entered into effect on 1 January 2026.
Under the new framework, the Securities and Commodities Authority is being replaced with the CMA. The new laws set out the role of the CMA, including powers to propose legislation to regulate the capital market, supervise and regulate financial activities and licensed persons, regulate mutual recognition of financial activities and propose memoranda of understanding and cooperation agreements with other jurisdictions and organisations.
Federal Decree-Law No. (33) in particular covers the types of financial activities subject to the regulation, licensing, supervision and oversight of the CMA, including brokerage, portfolio management, promotion, introducing financial activities, financial advisory services and services related to the establishment and management of investment funds. In respect of scope, the law shall apply to:
financial products when dealt with within the state
financial activities when practised within the state
licensed persons, accredited persons, issuers, foreign issuers when operating within the state, investment funds, and any person connected to them
persons targeting clients within the state, even if their activity is conducted outside the state or from a financial free zone
any person engaging in activities, investing or conducting transactions subject to the provisions of the Decree-Law and related legislation
Entities and individuals will be required to adjust their status in accordance with the new law within one year from the date of its enforcement.
We understand the CMA will be issuing further regulations, guidelines and circulars in due course which will likely provide further detail on the scope and depth of changes of the new rules. We will be closely following developments at aosphere to understand the impact, particularly in relation to the territorial reach of the new rules and the effect on the cross-border marketing and selling of funds.
Qatar – New offering & listing rulebook
In December 2025, a new Offering & Listing and M&A Rulebook, QFMA Board Decision No. 8 of 2025 (the New Rulebook) was issued which was then published in the Qatari Official Gazette dated 31 December 2025. The purpose of the New Rulebook is to help make Qatar more attractive to foreign investments and to bring the Qatari capital markets in line with international standards and best practices.
The New Rulebook sets out, among other things, the regime for marketing and offering local and foreign securities (including investment funds) in Qatar, including introducing:
a new private offer route which permits foreign funds to be offered in Qatar either by a QFMA-licensed intermediary to qualified investors or by a QCB-licensed bank to up to 1,000 of its own customers, without the fund requiring QFMA approval
an updated definition of qualified investor, which has been clarified and expanded to include high net worth individuals
As a result of the New Rulebook, there is some uncertainty as to the application of the ‘tolerated practice’ in Qatar. Under this tolerated practice, the QCB and the QFMA had not required a licence if the promotion, provision or offering of regulated services and products was carried out on a cross-border basis, provided it was done carefully on a low-key basis and within the parameters of certain guidelines. However, there is now a risk (which cannot, at the moment, be definitively quantified) that the QFMA may view cross-border marketing/offering of funds as not compliant with the New Rulebook, even if the guidelines are complied with.
Jordan – Amendments to the Securities Law
In May 2026, the Jordan Securities Commission (JSC) published key highlights of a draft law aimed at amending Securities Law No. 18 of 2017, signalling a potentially significant shift for Jordan’s capital markets framework. The proposed amendments are aimed at modernising the regime and keeping pace with evolving market dynamics. The JSC has said the reforms are specifically intended to strengthen investor protection, develop capital market instruments and investments, regulate digital assets and digital securities and support the efficiency, transparency and sustainability of the Jordanian capital market.
While the proposals cover a broad range of areas, we note in particular that the draft amendments introduce:
new exemptions from public offering requirements where offers are made exclusively to professional or qualified investors, subject to certain conditions
provisions to regulate trading in digital securities to keep pace with developments in financial technology
a proposed rebranding of the regulator itself, with the JSC set to be renamed the Capital Market Authority
proposed amendments to enhance cooperation between the regulator and other Arab and international regulatory bodies aimed at strengthening capital market governance, improving oversight of licensed entities and combatting unlawful practices
While the proposals have already been approved by the Council of Ministers and now referred to the House of Representatives, parliamentary approval and Royal endorsement are still required so it is not yet possible to predict when the legislative process will conclude, or whether the law will ultimately be enacted in its current form.
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