Central Bank of the UAE Partners with Vermeg to Launch Central Securities Depository

This initiative positions the UAE as a competitive player in global financial markets, enhancing its attractiveness for investors.

• On April 13, 2026, the Central Bank of the UAE (CBUAE) appointed Vermeg to lead the development of a Central Securities Depository (CSD).
• The CSD will modernize the trading, settlement, and custody of national debt and Sukuk, integrating digital and traditional operations.
• This move supports the UAE's broader goals of financial innovation and digital asset readiness, aligning with international standards.

• The UAE's debt capital market is projected to exceed USD 350 billion in 2026, driven by record Sukuk issuance.
• The CBUAE has been proactive in enhancing financial infrastructure through initiatives like the FinTech Office and sovereign financial cloud platform.
• This partnership addresses the need for integrated post-trade systems to manage expanding government debt and Sharia-compliant instruments.

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 CSD will serve as a centralized platform for recording, settling, and safeguarding government debt securities and Sukuk, which are Islamic bonds. This initiative is not merely a technological upgrade; it represents a strategic move to enhance the overall efficiency and competitiveness of the UAE's financial markets.

The CBUAE's decision follows a competitive selection process, emphasizing the importance of expertise in market infrastructures. Vermeg, known for its capabilities in developing financial technology solutions, will leverage its experience to create a robust platform that integrates both digital and traditional operations. This integration is crucial as the UAE aims to modernize its financial ecosystem, making it more attractive to both local and international investors.

The CSD is expected to improve post-trade efficiency, which is vital for liquidity management. As the UAE's debt capital market grows, the need for a streamlined process becomes increasingly important. The forecasted market size of USD 350 billion by 2026 underscores this urgency. Enhanced liquidity will benefit various stakeholders, including retail and institutional investors, by providing them with more accessible and efficient trading options.

Moreover, the CSD aligns with the UAE's broader goals of financial innovation and digital asset readiness. As the country positions itself as a global hub for Islamic finance, the establishment of a modern CSD is a critical component of its strategy. It addresses the growing demand for Sharia-compliant investment opportunities, particularly in a region where such instruments are gaining traction.

In summary, the CSD initiative is a cornerstone for building resilient financial infrastructure in the UAE. It reflects a commitment to aligning with international standards while fostering an environment conducive to investment and growth. As the development phase progresses, stakeholders will be closely monitoring its impact on the market dynamics and overall economic landscape.

• Financial institutions: Banks and investment firms will benefit from improved settlement processes and reduced operational risks.
• Retail investors: Enhanced liquidity and efficiency will provide better access to government debt and Sukuk.
• Regulatory bodies: The CBUAE will have a more robust framework for overseeing the growing debt market.

• Market response: Monitor how financial institutions adapt to the new CSD and its impact on trading volumes.
• Regulatory updates: Keep an eye on any new regulations or guidelines issued by the CBUAE regarding the CSD.
• Sukuk issuance trends: Watch for changes in Sukuk issuance as the market reacts to improved infrastructure.