The UAE’s Securities and Commodities Authority (SCA) is studying and preparing four legislations aimed at enhancing the competitiveness of financial markets, increasing transparency and protecting investors.
Speaking to WAM, Waleed Al Awadhi, CEO of the SCA, said that the legislations under development include the regulation of trading platforms for carbon credits, a strategic project supporting national efforts to achieve carbon neutrality. The authority will set licensing and operational requirements for these platforms, while operators will establish their own operational rules.
Al Awadhi added that the SCA is finalizing a draft regulation for retail Sukuk, designed to broaden the investor base by enabling access to the bonds and Sukuk market through fractional investment instruments, while safeguarding investors’ rights within a comprehensive regulatory framework. This is expected to boost liquidity and expand financial inclusion.
Enhancing the efficiency of the UAE’s financial markets
The UAE’s SCA is also undertaking legislative updates to the capital market authority law and financial sector regulations to expand the authority’s powers, enabling it to keep pace with modern financial activities and implement advanced supervisory mechanisms to manage risks and protect investors.
Another legislation in progress concerns the division of public joint stock companies, providing greater flexibility in corporate structuring and enhancing operational efficiency, added Al Awadhi.
The board of directors recently approved a comprehensive regulatory framework for the recognition and valuation of goodwill in public joint stock companies, as an intangible asset encompassing brand strength and corporate reputation.
Al Awadhi stressed that this package of projects aims to enhance the efficiency of the country’s financial markets, broaden the investor base and diversify financial products, thereby consolidating the UAE’s position as a leading global financial center combining efficiency, reliability and sustainable growth.
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SCA advances sustainable finance regulations
The UAE’s SCA has made significant progress in strengthening the UAE’s position in the field of sustainable finance by issuing a comprehensive regulatory framework for green bonds, green sukuk and sustainability-linked instruments. The framework aligns with global best practices and obliges issuers to direct proceeds towards environmentally sustainable projects.
Al Awadhi also noted that the authority has extended the exemption from registration fees for companies wishing to list green bonds and Sukuk, encouraging greater uptake. The total value of issues registered for listing reached AED5.5 billion during the year.
Since the regulation came into effect, the SCA has approved the registration of 11 green bonds and Sukuk issues with a total value of approximately AED24.6 billion. Meanwhile, the total value of sustainability-linked local and international issuances amounted to $8.7 billion, of which $6.7 billion were listed on local and international markets.
He affirmed that all the authority’s initiatives aim to enhance market efficiency, expand financial inclusion and offer a diverse range of financial products to meet the needs of various types of investors.
Al Awadhi also emphasized the SCA’s commitment to balancing support for innovation with maintaining financial stability and investor protection, thereby reinforcing the UAE’s status as a leading strategic hub in international financial markets.
