United Arab Emirates

The financial reporting and auditing framework in the United Arab Emirates (UAE) is established through federal legislation, ministerial decisions, securities regulations, and financial free zone rules. The principal instruments include Federal Decree-Law No. 32 of 2021 on Commercial Companies, Federal Decree-Law No. 41 of 2023 on Regulating the Accounting and Auditing Profession, Ministerial Decision No. 403 of 2015 on International Standards for the Auditing Profession, and relevant rules issued by the Securities and Commodities Authority (SCA), Dubai Financial Services Authority (DFSA), and Financial Services Regulatory Authority (FSRA).

Accounting Framework

Federal Decree-Law No. 32 of 2021 requires companies to maintain accounting records and prepare annual financial accounts. Companies are required to apply international accounting standards and principles when preparing periodic and annual accounts. The IFRS Foundation reports that International Financial Reporting Standards (IFRS) Accounting Standards as issued by the International Accounting Standards Board (IASB) are required in the jurisdiction, and that the IFRS for Small and Medium-sized Entities Accounting Standard is adopted.

Listed companies are subject to additional requirements under the SCA framework and the rules of the relevant securities markets. The IFRS Foundation reports that IFRS Accounting Standards are required for companies listed on NASDAQ Dubai, the DFSA, Dubai Financial Market, and Abu Dhabi Securities Exchange.

In the financial free zones, regulated entities are subject to financial reporting requirements established by the relevant regulator. In the Dubai International Financial Centre, the DFSA requires authorised firms to prepare financial statements in accordance with IFRS, with the IFRS for Small and Medium-sized Entities Accounting Standard permitted for certain lower-risk categories of authorised firms. In Abu Dhabi Global Market, the FSRA requires authorised persons and recognised bodies to prepare and maintain financial statements in accordance with IFRS, with the IFRS for Small and Medium-sized Entities Accounting Standard permitted for specified categories of authorised persons.

Auditing Framework

Federal Decree-Law No. 41 of 2023 provides the current federal framework for regulating the accounting and auditing profession. The Ministry of Economy is responsible for regulating the profession, granting professional licenses, approving and developing professional standards, monitoring and inspecting professionals and accounting firms, and referring violations to the Ministry Professional Compliance Committee.

Ministerial Decision No. 403 of 2015 requires auditors to apply International Standards on Auditing (ISA), International Financial Reporting Standards, the profession’s ethics and code of conduct, and international standards on quality control. However, the decision continues to reference quality control standards, and no evidence was identified that International Standards on Quality Management 1 and 2 and ISA 220 (Revised) have been formally incorporated into federal requirements.

The DFSA and FSRA establish separate audit and financial reporting requirements for regulated entities operating in the Dubai International Financial Centre and Abu Dhabi Global Market.

Only auditors are regulated at the state level in the United Arab Emirates (UAE). The profession is regulated through a shared framework involving the Ministry of Economy, the Emirates Association of Accountants and Auditors (EAAA), and sector-specific regulators. Other segments of the profession operate largely under voluntary professional membership arrangements.

The legal framework for regulation of the audit profession is primarily established under Federal Decree-Law No. 41 of 2023 on Regulating the Accounting and Auditing Profession and related ministerial decisions. The Ministry of Economy is the principal authority responsible for regulating auditors and audit firms operating outside the financial free zones.

The Ministry of Economy is responsible for approving and licensing auditors and audit firms; maintaining the professional register; establishing entry and licensing requirements; adopting accounting, auditing, and ethical standards; conducting inspections and quality assurance reviews; administering investigation and disciplinary procedures; and overseeing continuing professional development requirements for licensed auditors.

Under Ministerial Decision No. 111 of 2022, all auditors licensed by the Ministry of Economy are required to hold membership in EAAA. EAAA was originally established under Federal Decree No. 227 of 1997 as a professional accountancy organization for accountants and auditors in the UAE.

EAAA operates as the national professional accountancy organization and is responsible for supporting the development of the profession through continuing professional development activities, technical training, member services, and implementation support related to accounting, auditing, and ethical standards. EAAA members are subject to the organization’s ethical requirements and investigation and disciplinary procedures. Given the international composition of the profession in the UAE, many members also hold memberships with foreign professional accountancy organizations and remain subject to the requirements of those organizations.

Entry requirements for auditors are established by the Ministry of Economy. Applicants are generally required to hold a university degree in accounting or a related discipline with specified accounting coursework, complete practical experience requirements, obtain membership in EAAA, complete the required professional examinations, and fulfill annual continuing professional development obligations.

The United Arab Emirates Chartered Accountant (UAECA) qualification is delivered through arrangements between EAAA and the Association of Chartered Certified Accountants (ACCA). Candidates pursuing the UAECA qualification are required to complete the ACCA qualification requirements, including practical experience and ethics components, in addition to jurisdiction-specific requirements established by EAAA and the Ministry of Economy.

Auditors of listed entities and regulated financial institutions are subject to additional oversight and registration requirements established by the Securities and Commodities Authority, Dubai Financial Services Authority, and Abu Dhabi Accountability Authority, depending on the nature of the entity and jurisdiction in which the audit services are performed.

Other accountancy professionals are not subject to mandatory state licensing requirements. Accounting professionals may practice based on academic qualifications obtained from recognized universities or through foreign professional qualifications recognized in the jurisdiction. Many accounting professionals in the UAE hold memberships with international professional accountancy organizations such as ACCA, the Institute of Chartered Accountants in England and Wales, the Institute of Chartered Accountants of India, the Institute of Chartered Accountants of Pakistan, the Association of International Certified Professional Accountants, and Chartered Accountants Sri Lanka, among others.

Graduates of recognized universities may voluntarily join EAAA as students, associates, or other membership categories and pursue the UAECA qualification pathway.

Audit oversight in the United Arab Emirates (UAE) is carried out through a combination of federal regulation and sector-specific oversight arrangements.

At the federal level, the Ministry of Economy regulates and oversees auditors and audit firms operating outside the financial free zones under Federal Decree-Law No. 41 of 2023 on Regulating the Accounting and Auditing Profession. The Ministry is responsible for licensing, maintaining professional registers, monitoring and inspecting professionals and accounting firms, and referring violations to the Professional Compliance Committee. The Committee reviews violations referred by the Ministry and may recommend disciplinary action or referral to the public prosecutor where violations may constitute a criminal offence.

In the Dubai International Financial Centre, the Dubai Financial Services Authority (DFSA) regulates Registered Auditors that provide audit services to Public Listed Companies, Authorised Firms, Authorised Market Institutions, and Domestic Funds. The DFSA operates an audit monitoring programme and applies a risk-based approach to supervision of Registered Auditors. The DFSA is a member of the International Forum of Independent Audit Regulators.

In Abu Dhabi, the Abu Dhabi Accountability Authority (ADAA) carries out audit oversight responsibilities for entities within its mandate. ADAA maintains a list of statutory auditors developed under its Statutory Auditors’ Appointment Rules and has indicated that the process is designed to support audit quality and align with international standards and leading practices. ADAA is a member of the International Forum of Independent Audit Regulators.

The Securities and Commodities Authority (SCA) regulates listed joint-stock companies and other entities operating in the securities sector. Companies listed on the Dubai Financial Market and Abu Dhabi Securities Exchange are subject to SCA supervision, and SCA maintains a list of financial auditors approved for public joint stock companies and mutual funds. In 2025, SCA and DFSA signed a memorandum of understanding to strengthen regulatory cooperation on audit oversight, including firm registration and inspection.

The Emirates Association of Accountants and Auditors (EAAA)

The Emirates Association of Accountants and Auditors (EAAA) was established in 1997 and operates as the national professional accountancy organization in the United Arab Emirates (UAE). EAAA supports the development of the accountancy and auditing profession through member services, professional training, technical support, and regulatory collaboration.

EAAA membership includes accountants, auditors, firms, and students. Its members work across public practice, business and industry, the public sector, academia, and accounting and auditing firms. EAAA reports approximately 4,000 current members and provides membership pathways, professional certification, training, and continuing professional support.

Membership in EAAA is mandatory for auditors licensed by the Ministry of Economy. Ministerial Resolution No. 111-2 of 2022 requires auditors registered with the Ministry to hold valid EAAA membership before applying for the approved fellowship examinations and continuing professional education program.

EAAA’s activities include supporting professional growth and development, strengthening ethical practices, promoting internationally aligned standards, and supporting compliance with regulatory requirements. The association also offers the United Arab Emirates Chartered Accountant qualification pathway in cooperation with the Association of Chartered Certified Accountants.

In addition to its national role, EAAA is a member of the International Federation of Accountants and participates in regional professional accountancy networks, including the Arab Federation of Accountants and Auditors.

The quality assurance (QA) review framework in the United Arab Emirates (UAE) is established under Federal Decree-Law No. 41 of 2023 on Regulating the Accounting and Auditing Profession, which provides the Ministry of Economy with authority to monitor and inspect professionals and accounting firms operating outside the financial free zones.

The Ministry of Economy is responsible for conducting inspections, reviewing compliance with applicable professional standards and regulatory requirements, and referring violations identified through inspections, complaints, or other monitoring activities to the Professional Compliance Committee. The framework applies to auditors and audit firms licensed by the Ministry.

Separate QA and audit inspection arrangements operate within the financial free zones and capital markets sector. The Dubai Financial Services Authority conducts risk-based audit oversight and inspection activities for Registered Auditors operating in the Dubai International Financial Centre. The Abu Dhabi Accountability Authority and the Securities and Commodities Authority also maintain separate oversight arrangements for auditors operating within their respective mandates.

Ministerial Decision No. 403 of 2015 requires application of International Standards on Auditing, International Financial Reporting Standards, the profession’s ethics and code of conduct, and international standards on quality control. However, the framework continues to reference quality control standards and no evidence was identified that International Standard on Quality Management 1, International Standard on Quality Management 2, and International Standard on Auditing 220 (Revised) have been formally adopted and made effective across all mandatory audits at the federal level.

Accordingly, while a QA review system is established and operational in the jurisdiction, the framework is not yet fully aligned with the requirements of SMO 1.

Current Status: Partially Adopted

Initial and continuing professional development requirements for auditors in the United Arab Emirates (UAE) are established under Federal Decree-Law No. 41 of 2023, Cabinet Resolution No. 48 of 2022, and related Ministry of Economy requirements.

The Ministry of Economy is responsible for regulating professional licensing, approving professional standards and related certificate programs, accrediting professional programs, and ensuring the integrity of professional examinations. Applicants for auditor registration are required to hold a recognized bachelor’s degree in accounting, or another discipline with at least 15 approved accounting credit hours, hold a valid fellowship certificate, and complete prescribed practical experience requirements. Continuing professional development is required for renewal of registration.

The UAE Fellowship Programme was developed by the Ministry of Economy in collaboration with the Association of Chartered Certified Accountants (ACCA) and the Emirates Association of Accountants and Auditors (EAAA). It is a mandatory requirement for accredited auditors and includes examinations in international financial reporting, international auditing, and UAE tax and regulation, unless exemptions apply.

The United Arab Emirates Chartered Accountant qualification is delivered through EAAA’s joint examination scheme with ACCA and is understood to be aligned with the 2019 International Education Standards. However, the broader jurisdiction-level framework does not apply the IES requirements to all professional accountants, as non-auditor accounting professionals are not subject to mandatory licensing, examination, or continuing professional development requirements.

Accordingly, education requirements are established for auditors and partially align with SMO 2, but they do not apply to all professional accountants. IES remains assessed as Partially Adopted.

Current Status: Partially Adopted

Ministerial Decision No. 403 of 2015 requires application of International Standards on Auditing (ISA) for all mandatory audits in the United Arab Emirates (UAE). The Ministry of Economy is responsible for approving and developing professional standards for auditors and accounting firms operating outside the financial free zones under Federal Decree-Law No. 41 of 2023.

Separate requirements apply within the Dubai International Financial Centre and Abu Dhabi Global Market, where the Dubai Financial Services Authority and Abu Dhabi Global Market frameworks require auditors to comply with ISA and related quality management requirements.

However, the federal framework continues to reference quality control standards, and no public evidence was identified that the post-2022 quality management standards, including International Standard on Quality Management 1, International Standard on Quality Management 2, and ISA 220 (Revised), have been formally adopted and made effective across all mandatory audits at the federal level. Accordingly, the jurisdiction-level framework is partially aligned with SMO 3, and ISA is assessed as Partially Adopted.

ISA for Audits of Financial Statements of Less Complex Entities has been adopted in the UAE.

Current Status: Partially Adopted

Ministerial Decision No. 403 of 2015 requires application of the International Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants for auditors in the United Arab Emirates (UAE). The Ministry of Economy is responsible for regulating auditors and audit firms operating outside the financial free zones under Federal Decree-Law No. 41 of 2023.

Ministerial Resolution No. 111-2 of 2022 further requires auditors licensed by the Ministry of Economy to maintain membership in the Emirates Association of Accountants and Auditors (EAAA). EAAA requires members, including accountants who voluntarily join the association, to comply with the International Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants.

Separate requirements apply within the Dubai International Financial Centre and Abu Dhabi Global Market, where the Dubai Financial Services Authority and Abu Dhabi Accountability Authority also require application of the International Code of Ethics for Professional Accountants.

Current Status: Adopted

Public sector accounting requirements in the United Arab Emirates (UAE) are established by the Ministry of Finance under Federal Decree-Law No. 26 of 2019 on Public Finance Management. The law requires the federal government to apply the accrual basis of accounting in accordance with UAE accounting standards, and the Ministry of Finance reports that federal entities began applying accrual accounting from January 1, 2021.

The Ministry of Finance has established federal accrual accounting standards and reports that the framework is intended to align federal accounting practices with international best practices. The 2026 Federal Budget Yearbook also refers to financial documentation and reporting in line with International Public Sector Accounting Standards (IPSAS).

Current Status: Adopted

The investigation and discipline (I&D) framework in the United Arab Emirates (UAE) is established through federal regulation, professional accountancy organization procedures, and sector-specific regulatory arrangements.

At the federal level, Federal Decree-Law No. 41 of 2023 authorizes the Ministry of Economy to monitor and inspect professionals and accounting firms, receive complaints and reports, and refer violations to the Professional Compliance Committee. The Committee is responsible for reviewing violations by licensed auditors and accounting firms and taking appropriate decisions. The Ministry of Economy reported in 2025 that the Committee had reviewed professional violations and issued disciplinary decisions, including warnings, fines, and suspensions.

The Emirates Association of Accountants and Auditors (EAAA) also operates investigation and disciplinary procedures for its members, including auditors licensed by the Ministry of Economy and other accountants who join voluntarily. Separate I&D arrangements apply in the financial free zones and capital markets sector. The Dubai Financial Services Authority has investigation and enforcement powers under its Regulatory Policy and Process Sourcebook, while the Securities and Commodities Authority may conduct or request investigations and inspections of registered auditors for public joint stock companies and mutual funds.

Although I&D mechanisms are established and operational for regulated auditors and EAAA members, the framework does not fully apply to all professional accountants, and differences remain across responsible authorities, including scope, committee structures, and timeframe targets for case disposal. Accordingly, the jurisdiction-level I&D framework is partially aligned with SMO 6, and I&D is assessed as Partially Adopted.

Current Status: Partially Adopted

Federal Decree-Law No. 32 of 2021 on Commercial Companies requires companies in the United Arab Emirates (UAE) to apply international accounting practices and standards when preparing periodic and annual accounts. The IFRS Foundation reports that International Financial Reporting Standards (IFRS) Accounting Standards are required for domestic and foreign companies whose securities trade in public markets, including entities listed on NASDAQ Dubai, Dubai Financial Services Authority, Dubai Financial Market, and Abu Dhabi Securities Exchange.

The IFRS Foundation also reports that IFRS Accounting Standards are required or permitted for other entities in the jurisdiction and that the IFRS for Small and Medium-sized Entities Accounting Standard is permitted. In the Dubai International Financial Centre and Abu Dhabi Global Market, the Dubai Financial Services Authority and Financial Services Regulatory Authority require IFRS, while permitting the IFRS for SMEs Accounting Standard for certain lower-risk regulated entities.

Accordingly, IFRS Accounting Standards as issued by the International Accounting Standards Board are required in the jurisdiction, with the IFRS for SMEs Accounting Standard permitted for eligible entities.

Current Status: Adopted

Relevant Organizations

Abu Dhabi Accountability Authority

Abu Dhabi Global Market Financial Services Regulatory Authority

Association of Chartered Certified Accountants

Dubai Financial Services Authority

Emirates Association of Accountants and Auditors

IFRS Foundation Jurisdiction Profile: United Arab Emirates

Ministry of Economy, United Arab Emirates

Ministry of Finance, United Arab Emirates

Securities and Commodities Authority

Relevant Legislation

Cabinet Resolution No. 48 of 2022 Concerning Regulation of the Auditing Profession

Federal Decree-Law No. 26 of 2019 on Public Finance Management

Federal Decree-Law No. 32 of 2021 on Commercial Companies

Federal Decree-Law No. 41 of 2023 on Regulating the Accounting and Auditing Profession

Ministerial Decision No. 403 of 2015 Concerning International Standards for the Auditing Profession

Ministerial Resolution No. 111-2 of 2022 on Approval of Application of Fellowship Certificate and Continuing Professional Education Program for Auditors Registered with the Ministry of Economy

Securities and Commodities Authority Board Decision No. 3 of 2000 Concerning the Regulations as to Disclosure and Transparency

Relevant Publications

DFSA Auditor Supervision Framework

DFSA, Ministry of Economy and Securities and Commodities Authority Joint Audit Inspection Initiative

EAAA Investigation and Discipline Regulations

Ministry of Finance Accrual Accounting Programme

United Arab Emirates Federal Budget Yearbook 2026