Abu dhabi: Waleed Al Awadhi, CEO of the Securities and Commodities Authority (SCA), has announced that the authority is studying and preparing four regulatory projects aimed at enhancing the competitiveness of financial markets, increasing transparency, and protecting investors. The new legislations focus on carbon credits, retail Sukuk, and the restructuring of public joint stock companies.
According to Emirates News Agency, the SCA is developing regulations for trading platforms dedicated to carbon credits, aligning with national efforts towards carbon neutrality. The authority will define licensing and operational requirements, while operators will establish their operational rules.
Al Awadhi also revealed that the SCA is finalizing a draft regulation for retail Sukuk, intended to broaden the investor base by allowing access to the bonds and Sukuk market through fractional investment instruments. This initiative aims to boost liquidity and expand financial inclusion.
The SCA is also updating the capital market authority law and financial sector regulations to expand its powers, enabling it to keep pace with modern financial activities. These changes will allow the implementation of advanced supervisory mechanisms to manage risks and protect investors.
Another legislative project in progress concerns the division of public joint stock companies, aimed at providing greater flexibility in corporate structuring. Additionally, the SCA's Board of Directors has approved a framework for recognizing and valuing goodwill in public joint stock companies.
Al Awadhi emphasized that these projects aim to enhance the efficiency of the country's financial markets and diversify financial products, thereby strengthening the UAE's position as a leading global financial center.
The SCA has also made strides in sustainable finance by issuing a regulatory framework for green bonds, green Sukuk, and sustainability-linked instruments. This framework aligns with global practices, obliging issuers to direct proceeds towards environmentally sustainable projects.
The authority has extended exemptions from registration fees for companies listing green bonds and Sukuk, encouraging greater uptake. The total value of issues registered for listing reached AED5.5 billion this year. Since the regulation's implementation, the SCA has approved the registration of 11 green bonds and Sukuk issues, totaling approximately AED24.6 billion.
Al Awadhi affirmed that all initiatives aim to enhance market efficiency, expand financial inclusion, and offer a diverse range of financial products. He also highlighted the SCA's commitment to balancing innovation support with maintaining financial stability and investor protection, reinforcing the UAE's status in international financial markets.