The UAE is implementing wide-ranging financial market reforms to enhance oversight, investor protection, and digital innovation. The Securities and Commodities Authority (SCA) is leading the updates.
Currently, the authority is revising the Capital Market Authority Law and related regulations. These changes aim to align the law with new financial activities and modern oversight methods. Furthermore, Waleed Al Awadhi, CEO of the SCA, confirmed that four key regulatory initiatives are underway.
Collectively, these initiatives will help expand investor participation, diversify financial products, and improve market transparency. Al Awadhi said these reforms reflect the UAE’s role as a leading financial hub.
One major focus is on developing rules for carbon credit trading platforms. Notably, this step supports the national carbon neutrality agenda. The SCA will license platforms, while operators manage daily operations.
In addition, another initiative under the financial market reforms involves a new framework for retail sukuk. This aims to allow more investors to access bond markets using fractional investments. As a result, the structure will protect investor rights and increase market liquidity.
Moreover, the SCA is drafting legislation to allow the division of public joint-stock companies. This measure will offer flexibility for restructuring and improve company performance.
Simultaneously, goodwill recognition is also being addressed. The SCA Board approved standards to value goodwill in joint-stock companies. This includes brand reputation and aligns with global accounting practices.
Ultimately, these updates aim to improve corporate transparency, board oversight, and audit committee responsibilities. Al Awadhi highlighted that these efforts support national economic goals such as “We the UAE 2031.”
In addition to those initiatives, the SCA is advancing sustainable finance. It launched a regulatory framework for green bonds and sukuk. Under this framework, issuers must allocate funds to green projects and report environmental impacts regularly.
So far, 11 green bond and sukuk issuances have received approval, totaling Dh24.6 billion. Consequently, the total value of sustainability-linked bonds reached $8.7 billion.
To further encourage participation, the authority also waived registration fees to encourage more green listings. This incentive has driven Dh5.5 billion in new green bond activity this year.
Meanwhile, digital transformation is another pillar of the financial market reforms. The SCA introduced tokenised securities and commodity contracts to modernise financial services.
Lastly, Al Awadhi said digital tools are essential for efficient, transparent markets. These changes reflect the UAE’s drive toward a sustainable, knowledge-based economy.
