The UAE continues its ambitious financial sector reform by changing market regulations and enhancing investor protection. The Securities and Commodities Authority (SCA), led by CEO Waleed Al Awadhi, is updating the Capital Market Authority Law. These changes aim to support advanced oversight, reduce risk, and strengthen investor confidence.
Currently, the SCA is working on four key initiatives. These are designed to increase market strength, diversify investment tools, and improve transparency. Al Awadhi emphasized the need to stay ahead of global trends and evolving financial technologies.
As part of the financial sector reform, one major initiative focuses on carbon credit trading. This aligns with the UAE’s national goal of achieving carbon neutrality. The SCA will handle licensing while operators define operational procedures.
The authority is also finalizing rules for retail sukuk to open bond markets to a wider base. These rules will allow fractional investment and safeguard investor rights. This structure should improve liquidity and financial inclusion.
Additionally, the SCA is drafting legislation for splitting public joint-stock companies. This aims to provide more flexibility in corporate restructuring. It also boosts efficiency and performance across key sectors.
Moreover, the SCA Board approved a new framework to recognize and evaluate goodwill in listed firms. This includes brand value and aligns with global accounting practices. The goal is to help boards and auditors ensure more honesty and better governance.
As part of broader financial sector reform, Al Awadhi confirmed that the SCA supports national sustainability goals. The authority launched a regulatory framework for green bonds and sukuk. Companies must now use funds only for eco-friendly projects and submit regular environmental impact reports.
To promote this effort, the SCA waived registration fees for green bonds and sukuk. As a result, issuances reached Dh5.5 billion in 2025. Since inception, the authority has approved 11 green listings valued at Dh24.6 billion. Combined with other sustainability-linked bonds, the total has reached $8.7 billion.
The SCA also launched frameworks for tokenised securities and commodities. These are part of the digital transformation effort that supports faster, safer financial services.
Altogether, the UAE’s financial sector reform reflects its long-term plan for a resilient and transparent economy. Through these measures, the country aims to solidify its global position in sustainable and innovative finance.
