The European Commission Delists UAE from ‘High Risk’ AML/CFT List

On June 10, the European Commission released a statement announcing the delisting of the UAE, among other third countries, from its updated list of ‘high-risk jurisdictions’. This is a significant win for the UAE, which has been improving its AML/CFT initiatives over the past few years since being placed in the FATF grey list in 2022.

The Commission’s list of ‘high-risk jurisdictions’ includes countries with strategic deficiencies in their national anti-money laundering and countering the financing of terrorism (AML/CFT) regimes. Countries included in this list are therefore subject to increased financial scrutiny from EU authorities, which raises the possibility of financial exclusion and exposes them to pressure from other countries.

“The UAE welcomes the commission’s updated list of high-risk countries to strengthen the international fight against financial crime, and is fully committed to deepening its robust and strategic partnership with the European Union,” said a UAE official in a statement. “We continue to work closely with the relevant authorities and each EU member state."

Besides the UAE, the other delisted countries include Barbados, Gibraltar, Jamaica, Panama, the Philippines, Senegal, and Uganda. Meanwhile, a number of countries were included in the list, such as Algeria, Angola, Côte d’Ivoire, Kenya, Laos, Lebanon, Monaco, Namibia, Nepal, and Venezuela.

Notably, members of the European Parliament must approve the commission's revised list within a month for it to take effect. After being accepted, the regulation will be published in the EU's Official Journal and go into force 20 days later.

The FATF, the global body that combats money laundering and terrorism financing, added the UAE to its grey list in 2022. Following that, the European Commission also added the UAE to its ‘high-risk jurisdiction’ list in March 2023.

Since then, the UAE has implemented extensive reforms, including launching a national anti-money laundering strategy, passing strict laws, and issuing regulations to combat financial crime in the emirates. In February 2024, these actions led to the UAE’s removal from the FATF grey list.

Enhanced EU Investor Confidence in Dubai Real Estate

With the UAE’s improved global standing in AML/CFT compliance, there is an expected positive ripple effect across various sectors, particularly in real estate. Mainly, Dubai real estate investor confidence is enhanced as the UAE, and therefore Dubai, aligns more closely with other globally recognized global real estate hubs.

Previously, the enhanced due diligence requirements for transacting with ‘high-risk jurisdictions’ acted as a deterrent for EU-based financial institutions. However, once the UAE is delisted from the EU's high-risk list, institutional investors from the European Union can be more confident in investing in the UAE.

Additionally, the delisting complements Dubai’s ongoing efforts to attract long-term investment through regulatory reforms, increased transparency, and the digitalization of property transactions.

According to Ahmed Omran, Head of Compliance & AML at Driven | Forbes Global Properties, “The delisting of the UAE by the European Commission is a strong testament to the country’s leadership and strategic vision in building a resilient and transparent financial system. The UAE’s comprehensive national efforts across regulatory, supervisory, and enforcement domains, have positioned it as a reliable partner in the global fight against financial crime.

“This important milestone removes institutional barriers and enhances investor trust. For Dubai’s real estate sector, It unlocks new opportunities for European investment in Dubai property, as investors regain confidence in engaging with the UAE market.”

With this renewed investor confidence, Dubai's real estate capital inflow coming from the EU is expected to increase. These include sovereign wealth funds, pension schemes, and large asset managers that operate under strict regulatory mandates.

As a result, Dubai’s real estate market is likely to witness a strengthened pipeline of international investment. This will help sustain demand across commercial and residential sectors, reinforcing Dubai as a safe, stable, and lucrative destination for global capital.

“For further insights and comprehensive real estate advisory services please contact Driven Properties at +971800374836”