Dubai, UAE - His Excellency Walid Al Awadhi, CEO of the Securities and Commodities Authority (SCA), announced that the authority is currently working on studying and preparing four regulatory projects aimed at enhancing the competitiveness of financial markets, improving transparency, and protecting investors.

During an interview with the Emirates News Agency (WAM), Al Awadhi stated that the regulations being developed include the organization of carbon credit trading platforms, a strategic project aimed at supporting national efforts to achieve carbon neutrality. The SCA will establish licensing requirements and operational guidelines for these platforms, while the operators will set the operational rules.

Al Awadhi also mentioned that the authority is finalizing a draft regulation for retail sukuk, which aims to broaden the investor base by enabling them to access the bond and sukuk market through fractional investment tools. This initiative will ensure the protection of investor rights within a comprehensive regulatory framework, contributing to enhanced liquidity and financial inclusion.

The SCA is also working on updating the Capital Markets Law to expand its powers, enabling it to keep pace with modern financial activities and activate advanced regulatory mechanisms to address risks and protect investors.

The new regulations will include a specific law for the division of public joint-stock companies, allowing for greater flexibility in corporate structuring and enhancing operational efficiency. The SCA's board of directors recently approved a comprehensive regulatory framework for assessing and managing "goodwill" in public joint-stock companies, recognizing it as an intangible asset that includes brand strength and company reputation.

This decision aims to enhance compliance with international accounting standards and establish clear evaluation criteria to support boards of directors, audit committees, and external auditors in fulfilling their evaluation obligations, while also promoting transparency and disclosure for investors.

Al Awadhi emphasized that this package of projects aims to enhance the efficiency of financial markets in the UAE, 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.

He highlighted that the SCA prioritizes developing a supportive legislative environment for innovation and digital transformation, enhancing governance, protecting investor rights, and advancing the UAE's agenda in sustainability and financial inclusion. These efforts align with the objectives of the "We Are the UAE 2031" vision and the country's strategy for transitioning to an advanced and sustainable knowledge-based economy.

Al Awadhi noted that the SCA has made significant progress in enhancing the UAE's position in sustainable financing by issuing a comprehensive regulatory framework for green bonds and sukuk linked to sustainability. This framework aligns with global best practices and requires issuers to direct proceeds toward sustainable environmental projects, such as carbon reduction, renewable energy, pollution control, biodiversity preservation, and promoting a circular economy.

The authority mandates that issuers prepare semi-annual reports detailing how proceeds are utilized and the environmental impact of the projects, ensuring compliance with environmental standards and enhancing transparency and accountability.

Al Awadhi emphasized that the role of banks is crucial in providing flexible solutions that align with economic and social transformations, ensuring the sustainability of real estate growth through developmental tools that mature the market. He urged banks in the UAE to offer competitive financing options, enhance transparency in financing contracts, and provide diverse choices between fixed and variable interest rates, along with support programs for new buyers, especially amid ongoing price increases in the real estate market and changes in lending interest rates.

Al Awadhi reiterated that all initiatives undertaken by the SCA aim to enhance the efficiency of financial markets, expand financial inclusion, and offer a diverse range of financial products that meet the needs of various types of investors. He emphasized the authority's commitment to balancing support for innovation while maintaining financial stability and protecting investors, reinforcing the UAE's position as a strategic hub in international financial markets.