The United Arab Emirates is continuing to strengthen the underlying infrastructure of its capital markets as it expands its role as a regional financial hub. In a move aimed at improving the efficiency and transparency of government debt and Sukuk markets, the Central Bank of the UAE has appointed technology provider Vermeg to help build a national Central Securities Depository platform. The initiative is expected to streamline post-trade processes, enhance investor confidence, and prepare the market for future innovations including digital assets.
The Central Bank of the UAE (CBUAE) has appointed Vermeg, a global provider of technology solutions for financial market infrastructure, as the lead technology partner in a consortium tasked with developing a Central Securities Depository (CSD) platform for the country’s national debt and Sukuk markets.
The project represents a key milestone in the UAE’s broader strategy to strengthen the infrastructure supporting its capital markets. By establishing a dedicated CSD for government debt instruments and Sukuk, the central bank aims to improve the efficiency, reliability, and transparency of post-trade processes.
Central securities depositories play a critical role in financial markets by managing the settlement, safekeeping, and record-keeping of securities transactions. The new platform will serve as the foundational infrastructure for handling the lifecycle of national debt securities, including settlement and custody.
The CBUAE said the initiative is designed to enhance post-trade operational efficiency while reinforcing the international competitiveness of the UAE’s financial ecosystem. The platform will also support an integrated operating environment for liquidity management and settlement activities across both traditional custody services and emerging digital asset frameworks.
According to the central bank, the initiative is aligned with its long-term vision to build a modern financial infrastructure that adheres to global best practices while supporting future innovation within the UAE’s financial markets.
Saif Humaid Al Dhaheri, Assistant Governor for Banking Operations and Support Services at the CBUAE, described the creation of a national CSD as a critical step in strengthening the country’s financial architecture.
He noted that the new infrastructure will play a central role in building a more efficient and resilient capital market environment, while also reinforcing the confidence of global investors looking to access UAE financial markets.
The CBUAE also emphasized that the platform will support the continued development of the domestic debt market, a segment that has grown rapidly in recent years as the UAE expands its sovereign and corporate bond issuance programmes.
Vermeg, which specialises in technology solutions for market infrastructures, collateral management, and asset servicing, will bring its experience working with central banks and financial institutions around the world to the project.
Badreddine Ouali, Chairman of the Supervisory Board at Vermeg, said the company’s selection reflects its long track record in delivering mission-critical infrastructure for financial markets.
He noted that the company will work closely with the central bank and consortium partners to deliver a next-generation CSD platform designed to improve market efficiency and support financial innovation across the UAE’s capital markets.
Once operational, the platform is expected to help position the UAE as a more attractive destination for international capital flows while enabling more advanced settlement and custody capabilities for debt and Sukuk instruments.
What this means for the industry
- Stronger capital market infrastructure: A dedicated CSD will improve settlement efficiency and transparency for UAE government debt and Sukuk markets.
- Greater investor confidence: Institutional investors typically favour markets with robust post-trade infrastructure, which can attract more international capital.
- Growth of the domestic debt market: As sovereign and corporate bond issuance increases in the UAE, modern infrastructure will be essential to support higher volumes.
- Foundation for digital assets: The platform is designed with future innovations in mind, including integration with digital asset settlement frameworks.
- UAE’s financial hub ambitions: Strengthening market infrastructure supports the country’s long-term goal of becoming a leading global financial centre.
