The UAE is preparing to introduce a comprehensive set of regulations that will accelerate the digital transformation of the country’s accounting and auditing sector. The overhaul, expected to take effect within months, is being described by industry officials as one of the most significant regulatory upgrades in recent years. It will reshape how companies maintain financial records, how auditors conduct their work, and how transparency is monitored nationwide.
Addressing nearly 3,200 members of the Dubai Chapter of the Institute of Chartered Accountants of India (ICAI), Abdullah Saleh Al Hammadi, director of the Auditors Department at the Ministry of Economy and Tourism, announced that the new framework will expand the responsibilities of Chartered Accountants while embedding advanced digital tools across the profession. His comments come at a time of rapid growth in the sector. By August 2025, the number of registered chartered accountants had risen to 1,103, compared with 871 a year earlier, while the total number of accounting firms increased to 396.
A central feature of the reform is the Unified Digital Audit Reporting System (Udars), a mandatory national platform that will soon become the sole channel for submitting audited financial statements. All licensed audit firms will be required to file exclusively through the portal, ending manual and paper-based submissions. Businesses will therefore need to maintain digital records that can be updated in real time to meet filing requirements.
Udars is designed to bring a high level of automation and accuracy to the audit process. The system will connect with the Federal Tax Authority, the Emirates ID system and the Corporate Tax Portal to validate financial data instantly. Artificial intelligence will be used to flag missing entries, irregularities or late filings, while blockchain technology will secure audit trails and prevent tampering. This shift is expected to reduce discrepancies, speed up processing and tighten regulatory oversight.
Al Hammadi also confirmed that the upcoming rules will introduce guidelines for Environment, Sustainability and Governance (ESG) reporting, placing the UAE among the regional leaders in non-financial disclosure standards. He noted that ICAI members, one of the largest professional communities in the UAE, will play an important role in applying these requirements.
The digital transition builds on Federal Decree-Law No. 41 of 2023, which mandated auditor licensing and registration and required adherence to international standards such as IFRS. The new measures will expand those obligations by making digital verification and automated compliance core elements of the audit process.
Businesses are expected to upgrade internal accounting systems and adopt compliant software to align with the new rules. Penalties for non-compliance will start at Dh25,000, with licences subject to suspension in repeated cases. Audit firms are also preparing for the shift. Several, including AFS Auditing, have already begun adapting their internal systems to meet Udars requirements.
Speaking at the ICAI Dubai Chapter convention, Indian parliamentarian Shashi Tharoor said Chartered Accountants serve as the “moral architecture of the global economy,” adding that their role is becoming even more vital amid rapid economic and technological change.
The upcoming regulations signal a decisive move toward a financial reporting environment defined by real-time data, strict accountability and advanced digital infrastructure, setting a new benchmark for the region’s corporate governance landscape.
