Walid Al-Odah, the Chief Executive Officer of the Securities and Commodities Authority (SCA), has announced that the authority is currently examining and preparing four regulatory projects aimed at enhancing the competitiveness of financial markets, promoting transparency, and protecting investors.
In a conversation with the Emirates News Agency, Al-Odah revealed that the legislation under development will include the regulation of carbon credit trading platforms. This strategic initiative is designed to support national efforts toward carbon neutrality. The SCA will set the licensing requirements and operational standards for these platforms, while the platform operators will be responsible for implementing the operational rules.
Additionally, the SCA is in the process of finalizing a draft regulation for retail sukuk (Islamic bonds), which is aimed at broadening the investor base by allowing them to access the bond and sukuk market through fractional investment instruments. This framework will ensure the protection of investor rights within a comprehensive regulatory environment, thereby enhancing liquidity and financial inclusivity.
Al-Odah further explained that the authority is working to update the Securities and Exchange Law to expand its powers, enabling it to keep pace with modern financial activities and implement advanced supervisory mechanisms for risk management and investor protection.
The ongoing legislative efforts also include a law governing the division of public joint-stock companies, which will provide greater flexibility in corporate structuring and improve operational efficiency.
In its latest meeting, the SCA’s Board of Directors approved a comprehensive regulatory framework to govern the concept of “goodwill” and its valuation in public joint-stock companies, recognizing it as an intangible asset that encompasses brand strength and company reputation.
This decision aims to enhance compliance with international accounting standards and establish clear valuation principles that support boards of directors, audit committees, and external auditors in fulfilling their evaluation responsibilities. It also seeks to improve transparency and disclosure for investors.
Al-Odah emphasized that these initiatives aim to enhance the efficiency of the financial markets in the country, expand the investor base, and diversify financial products, solidifying the UAE’s position as a leading global financial hub characterized by efficiency, reliability, and sustainable growth.
The authority prioritizes the development of a legislative environment that fosters innovation, supports digital transformation, strengthens governance, protects investor rights, and advances the national agenda in sustainability and financial inclusion. These efforts align with the objectives of the “We Are the Emirates 2031” vision and the country’s strategy to transition towards a sustainable knowledge-based economy.
Moreover, the SCA has made significant progress in positioning the UAE as a leader in sustainable finance, having established a comprehensive regulatory framework for green bonds and sukuk that aligns with global best practices. This framework mandates issuers to direct proceeds toward sustainable environmental projects, such as carbon removal, new and renewable energy, pollution reduction, biodiversity preservation, and promoting a circular economy.
The authority requires issuers to prepare semi-annual reports detailing the use of proceeds and the environmental impact of the projects financed, and it mandates mechanisms to ensure compliance with environmental standards while enhancing transparency and adherence through online disclosures and financial markets.
Additionally, the authority has decided to extend the exemption from registration fees for companies wishing to list green bonds and sukuk, which has contributed to a significant increase in the interest surrounding these issuances. The total volume of registered issuances for listing purposes reached AED 5.5 billion over the past year.
Since the implementation of the regulation, the SCA has approved the registration of 11 green bond and sukuk issuances with a total value of approximately AED 24.6 billion, while the total value of local and international sustainable finance issuances reached USD 8.7 billion, of which USD 6.7 billion is listed on local and international markets.
In recognition of its leadership in this domain, the SCA has received the “Sustainability Year Mark: Deed and Word,” affirming its commitment to establishing principles of sustainable development and promoting an environmental culture within the financial sector.
Al-Odah reiterated the importance of digital transformation as a fundamental pillar for the development of financial markets. This year, the authority launched several innovative regulatory projects aimed at enhancing the efficiency and transparency of financial markets, including tokenized securities and tokenized commodity contracts, aimed at achieving digital transformation in the financial services sector.
The SCA also introduced a robo-advisory service, enabling licensed companies to provide tailored investment recommendations utilizing artificial intelligence and data analysis algorithms, under a regulatory framework that ensures transparency and protects investor rights.
He noted that this service represents a significant shift in portfolio management, allowing investors to gain access to markets based on informed decisions backed by digital analysis and aligned with their risk tolerance and financial goals.
Additionally, the authority launched an unprecedented initiative in the region to regulate financial influencers, as a strategic move to govern digital financial content and ensure the credibility of recommendations provided through media platforms.
This initiative allows residents to obtain official accreditation from the authority, permitting them to deliver financial or investment analyses under regulatory guidelines. The SCA has also approved a package of incentives to support financial digital activities, including waiving registration, renewal fees, and associated legal consultation costs for three years, promoting a move towards bureaucratic reduction and encouraging innovation.
Al-Odah confirmed that all the initiatives adopted by the authority seek to enhance the efficiency of the financial markets, broaden financial inclusivity, and offer a diverse range of financial products tailored to the needs of various types of investors.
He also reiterated the authority’s commitment to achieving a balance between fostering innovation and maintaining financial stability while safeguarding investors, thus solidifying the UAE’s status as a prominent strategic hub in international financial markets.