The Securities and Commodities Authority (SCA) is developing four key legislative initiatives to bolster the UAE’s financial market infrastructure, improve transparency, and promote sustainable investing, according to Waleed Al Awadhi, CEO of the SCA.
The new regulatory frameworks under study include legislation on carbon credit trading platforms, retail Sukuk, updates to the Capital Market Authority Law, and rules on the division of public joint stock companies.
“These projects aim to enhance the efficiency of financial markets, diversify investment products, and consolidate the UAE’s position as a trusted global financial centre,” Al Awadhi told Emirates News Agency (WAM).
Carbon Credit Platform Regulation Underway
One of the most anticipated legislations will govern carbon credit trading platforms. Al Awadhi noted that the SCA will define licensing and operational standards, while platform operators will establish trading rules. The framework aligns with the UAE’s net-zero goals and supports a growing interest in environmental commodities across the GCC.
The move is part of the UAE’s broader strategy to become a regional hub for sustainable finance and carbon-neutral investments.
Retail Sukuk Framework to Deepen Financial Inclusion
Another key project nearing finalisation is a retail Sukuk regulation aimed at making fixed-income instruments more accessible to a broader investor base. By enabling fractional Sukuk investments, the legislation is expected to:
- Broaden market participation
- Increase secondary market liquidity
- Strengthen investor protection through a comprehensive framework
This regulation is viewed as a critical step to deepen local debt markets and enhance retail participation in Islamic finance.
Capital Markets Law Update And Corporate Flexibility
The SCA is also updating the Capital Market Authority Law, expanding regulatory authority to keep pace with emerging financial products and services. Enhancements include modern risk management frameworks and advanced supervisory tools.
In addition, a forthcoming regulation on the division of public joint stock companies will provide businesses with greater flexibility in corporate structuring — aimed at improving operational efficiency and streamlining spin-offs or business unit segregation.
The SCA Board has already approved a regulatory framework for recognising goodwill — including brand value and reputation — as an intangible asset on corporate balance sheets.
Sustainable Finance Gaining Momentum
Al Awadhi underlined the SCA’s efforts to position the UAE as a leader in green and sustainable finance. The authority has issued a detailed framework covering green bonds, green Sukuk, and sustainability-linked instruments, in line with international standards.
As of mid-2025:
- 11 green bond/Sukuk issuances have been registered with a combined value of AED24.6 billion
- Sustainability-linked issuances reached US$8.7 billion, including US$6.7 billion listed on the UAE and global exchanges
- Issuers of green bonds and Sukuk continue to benefit from registration fee exemptions, supporting greater market uptake
“The SCA balances innovation with financial stability and investor protection, reinforcing the UAE’s role as a strategic global financial hub,” Al Awadhi said.
–Input WAM
