February 2026 brought a concentrated wave of regulatory activity across the GCC, with virtual assets at the centre. The UAE's Travel Rule framework moved from policy to practice, AI governance entered the supervisory agenda, and structural changes across DIFC, ADGM and Qatar rounded out a month that left compliance teams with little room to stand still. Below is j. awan & partners' summary of the key developments.

Gulf Cooperation Council Regulatory Developments

United Arab Emirates

Abu Dhabi Global Market Registration Authority (ADGM Registration Authority)

• ADGM Introduces Broker Classification Framework to Raise Real Estate Standards

  • The Abu Dhabi Global Market has announced the introduction of a broker classification framework aimed at raising standards across the real estate sector within ADGM's ecosystem.

Source: ADGM

Central Bank of the UAE (CBUAE)

• CBUAE Develops World's First Sovereign Financial Cloud Services to Strengthen Financial Sector Competitiveness

  • The Central Bank of the UAE has announced a strategic partnership with Core42 (G42) to develop a sovereign financial cloud services infrastructure dedicated to the UAE financial sector, marking the first initiative of its kind globally.

Source: CBUAE

• CBUAE Issues Guidance on Consumer Protection Implications of AI and ML

  • The Central Bank of the United Arab Emirates has issued a non-binding, principles-based Guidance Note outlining supervisory expectations for the ethical and responsible use of Artificial Intelligence (AI) and Machine Learning (ML) by Licensed Financial Institutions (LFIs), with a focus on consumer protection, governance, transparency, and risk management.

Source: CBUAE

Dubai International Financial Centre (DIFC)

• DIFC Announces Enactment of New Variable Capital Company (VCC) Regulations

  • The Dubai International Financial Centre has enacted new Variable Capital Company (VCC) Regulations to enhance investment structuring and asset management options available to entities incorporated within the DIFC.

Source: DIFC

Dubai Financial Services Authority (DFSA)

• DFSA Publishes Crypto Token Regulatory Framework FAQs Following Major Enhancements

  • The Dubai Financial Services Authority (DFSA) has issued a Crypto Token Frequently Asked Questions (FAQs) document to provide practical interpretative guidance on the application of its enhanced Crypto Token Regulatory Framework within the DIFC. The document clarifies key supervisory and authorisation triggers, DFSA expectations regarding client suitability and ongoing monitoring, the regulatory treatment of Fiat Crypto Tokens (stablecoins), and the conditions under which investment funds may obtain exposure to Crypto Tokens, as well as how the framework applies across different financial services and business models. It is intended to complement, rather than replace, the DFSA Rulebook, relevant Supervisory Guidance, Policy Statements, and recent consultation outcomes, and will be subject to periodic updates as the regulatory regime continues to evolve.

Source: DFSA

Financial Services Regulatory Authority (FSRA)

• UAE Virtual Assets Travel Rule – Consolidated Regulatory Notice and Compliance Framework

  • FSRA FCCP Notice No. 25 of 2026 sets out the mandatory regulatory requirements applicable to Financial Institutions and Virtual Asset Service Providers (VASPs) in relation to virtual asset transfers. The framework prescribes information-sharing, due diligence, monitoring, and control measures, together with associated supervisory and enforcement expectations under the UAE Virtual Assets Travel Rule.

Source: FSRA

UAE Ministry of Finance

• VARA Recognised as Competent Authority for Qualifying Investment Management Activities

  • The Ministry of Finance has issued Ministerial Decision No. (336) of 2025, pursuant to which the Virtual Assets Regulatory Authority (VARA) has been added to the definition of Competent Authority under Ministerial Decision No. (229) of 2025 for the purposes of Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses. VARA is now recognised as the relevant competent authority for Qualifying Activities related to fund management services and wealth and investment management services.

Source: MOF

Virtual Assets Regulatory Authority (VARA)

• VARA Circular on Implementation of UAE Virtual Assets Travel Rule Framework

  • The Virtual Assets Regulatory Authority has issued a circular setting out supervisory expectations for licensed Virtual Asset Service Providers (VASPs) regarding the implementation of the UAE Virtual Assets Travel Rule. The framework mandates the collection, verification, secure transmission, monitoring, and retention of originator and beneficiary information for qualifying Virtual Asset Transfers conducted within the Emirate of Dubai, in line with Federal AML/CFT legislation.

Source: VARA

• UAE Advances Regulated Real Estate Tokenization Framework Under DLD-Led Initiative

  • The Dubai Land Department (DLD), in coordination with the Virtual Assets Regulatory Authority (VARA), the Dubai Future Foundation, and the Central Bank of the UAE, has announced a government-backed initiative to enable the tokenization of real estate assets under the Real Estate Evolution Space (REES) framework. The model is designed to facilitate fractional ownership of property through blockchain-based tokens linked to officially registered real estate assets. This initiative forms part of the broader Dubai Economic Agenda (D33) and the Dubai Real Estate Strategy 2033, aiming to enhance market accessibility, transparency, liquidity, and cross-border investor participation. At this stage, no standalone regulatory amendments or detailed activity-level guidance specific to real estate tokenization have been formally issued.

Source: VARA

Kingdom of Saudi Arabia (KSA)

Capital Market Authority (CMA)

• CMA Calls for Public Consultation on the Mechanism for Listing Subsidiaries of Main Market Listed Companies Subject to Shareholders' Approval

  • The Capital Market Authority has opened a public consultation on the proposed mechanism for listing subsidiaries of Main Market listed companies, subject to shareholders' approval. The consultation invites feedback from listed companies, their subsidiaries, investors, and advisors on the proposed listing mechanics and associated governance requirements.

Source: CMA

Qatar

Qatar Central Bank (QCB)

• QCB Launches Virtual Assistant Service

  • The Qatar Central Bank has announced the launch of a virtual assistant service to enhance the customer and stakeholder support interface across QCB-regulated services.

Source: QCB

• QFCRA and Experts Credit Solutions Settle Disciplinary Proceedings

  • The Qatar Financial Centre Regulatory Authority has announced the settlement of disciplinary proceedings with Experts Credit Solutions, underscoring enforcement expectations for QFC-authorised firms and regulated entities operating within the Qatar Financial Centre.

Source: QCB

For further insights and tailored regulatory guidance, reach out to j. awan & partners.

Email: info@jawanpartners.com