SCA Launches Key Regulatory Reforms to Drive Competitiveness and Bolster Investor Protection

The Securities and Commodities Authority (SCA) has unveiled a comprehensive set of regulatory reforms aimed at enhancing the competitiveness of the UAE’s financial markets, strengthening investor safeguards, and aligning market oversight with international standards.

Announced by Waleed Al Awadhi, Chief Executive Officer of the SCA, the reforms include proposed amendments to the Capital Market Authority Law and associated regulations. The goal is to expand the Authority’s jurisdiction to better respond to emerging financial activities and implement advanced risk management systems.

According to a report in Al Khaleej Arabic daily, the SCA is currently developing four key regulatory initiatives focused on improving market efficiency, increasing transparency and ensuring greater investor protection.

 

Expanding Market Tools and Investor Base

Al Awadhi said the new regulatory package is expected to diversify financial products, broaden the investor base, and strengthen the UAE’s reputation as a resilient and credible global financial centre.

Among the flagship initiatives is the regulation of carbon credit trading platforms, a move that supports the UAE’s national carbon neutrality strategy. The SCA will define licensing requirements and operational guidelines, while platform operators will retain the responsibility of establishing specific operating rules.

Another significant measure is the finalisation of a retail sukuk regulatory framework designed to widen retail access to bond and sukuk markets. By facilitating fractional investments, the framework aims to boost market liquidity, protect investor rights, and promote financial inclusion.

The SCA is also working on legislation that will allow the division of public joint-stock companies, increasing flexibility for corporate restructuring and improving operational efficiency.

 

Valuing Intangible Assets

In a related move, the SCA Board has approved a regulatory framework for recognising and valuing goodwill in public joint-stock companies. This includes intangibles such as brand value and corporate reputation, which will now be assessed under clearly defined valuation standards aligned with international accounting practices.

The new rules are expected to assist boards of directors, audit committees, and external auditors in meeting governance and disclosure obligations -- ultimately enhancing transparency for investors.

 

Promoting Innovation and Sustainability

Al Awadhi noted that fostering a dynamic regulatory environment to support innovation and digital transformation remains a top priority. The reforms are also aligned with the national goals under the “We the UAE 2031” strategy and the broader vision for a knowledge-based, sustainable economy.

The SCA has made significant headway in sustainable finance, launching a robust regulatory framework for green bonds and sukuk. The guidelines require proceeds to be exclusively channelled into environmental projects -- such as decarbonisation, renewable energy, pollution reduction, biodiversity preservation, and circular economy initiatives. Issuers must submit semi-annual reports demonstrating how the funds are used and what environmental impact has been achieved.

To further encourage green finance, the SCA has waived registration fees for entities listing green bonds and sukuk -- an incentive that has significantly stimulated market activity. In 2025, green bond and sukuk listings reached Dh5.5 billion. Since the adoption of the framework, the SCA has approved 11 such issuances totalling Dh24.6 billion. Sustainability-linked issuances now stand at $8.7 billion globally, with $6.7 billion listed on UAE and international exchanges.

 

Accelerating Digital Transformation

Digital innovation remains a cornerstone of the SCA’s agenda. In 2024, the Authority introduced multiple regulatory frameworks to govern tokenised securities and tokenised commodity contracts, reinforcing the digital transformation of the financial services sector and improving transparency and efficiency across markets.

Al Awadhi reaffirmed the Authority’s commitment to developing an integrated ecosystem that not only adapts to global financial trends but also ensures strong investor protection, effective governance, and long-term market sustainability

 

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