The UAE continues its push for financial sector reform as the Securities and Commodities Authority (SCA) updates key laws and regulations. Consequently, these efforts aim to expand the authority’s powers and align oversight with modern financial activities and risks.
Moreover, Waleed Al Awadhi, CEO of the SCA, confirmed the authority is developing four major regulatory initiatives. These, in turn, will enhance competitiveness, improve transparency, and strengthen investor protection across capital markets. Furthermore, he stressed that the new reforms will support market efficiency, increase participation, and diversify financial products.
One of the major reforms, for example, focuses on regulating carbon credit trading platforms. Notably, this initiative supports the UAE’s carbon neutrality agenda. The SCA will define licensing rules, while platform operators manage internal procedures.
In addition, the SCA is finalizing a framework for retail sukuk. Specifically, this regulation will allow broader public access to bond and sukuk markets through fractional investments. At the same time, it will also protect investor rights and improve liquidity across capital markets.
Another important proposal involves a law to allow the division of public joint-stock companies. Thus, this move will create flexibility in restructuring and raise operational efficiency.
Meanwhile, the SCA Board also approved a regulatory framework to value goodwill in joint-stock companies. Goodwill includes brand equity and reputation. Accordingly, the framework aligns with international accounting standards to boost transparency and investor disclosure.
Additionally, Al Awadhi emphasized that financial sector reform must include innovation and digital transformation. These goals, importantly, also support national strategies under “We the UAE 2031.”
Sustainable finance, likewise, remains a major priority for the authority. To that end, the SCA launched a detailed regulatory framework for green bonds and sukuk. Issuers must allocate funds to green projects and submit environmental impact reports twice a year.
So far, the SCA has approved 11 green bond and sukuk listings, worth Dh24.6 billion. The total for sustainability-linked bonds reached $8.7 billion. To further boost participation, the SCA waived registration fees, which has already led to Dh5.5 billion in new green listings.
Furthermore, the SCA is investing in digital tools. In 2024, it introduced frameworks for tokenised securities and tokenised commodity contracts. Overall, these steps will enhance market transparency and digital growth.
Ultimately, through financial sector reform, the UAE aims to create a more resilient, sustainable, and innovation-driven market.
