Abu Dhabi: The UAE’s Securities and Commodities Authority has introduced a pioneering green bonds and sukuk framework, alongside fee exemptions and new debt regulations, driving transparency and boosting investor protection to position the country as a global leader in sustainable finance.
The Securities and Commodities Authority (SCA) of the UAE has unveiled a robust regulatory overhaul aimed at strengthening market competitiveness and enhancing investor protection, with a notable emphasis on sustainable finance. This initiative aligns with the country’s broader strategy to cement its position as a global hub for green finance and sustainable economic development.
Central to this overhaul is the comprehensive regulatory framework introduced for green bonds and sukuk, which the SCA rolled out in April 2023. This pioneering framework mandates that proceeds from these instruments be exclusively dedicated to environmentally sustainable projects, including decarbonisation, renewable energy, pollution reduction, biodiversity conservation, and circular economy initiatives. Issuers are required to provide semi-annual reports detailing not only the allocation of proceeds but also the environmental impact of their projects, fostering transparency and accountability throughout the investment lifecycle. The framework further stipulates that issuers implement stringent compliance mechanisms and disclose pertinent information through financial market channels and official platforms, reinforcing the regulatory oversight.
This regulatory framework is part of the SCA’s broader vision for sustainable finance leadership in the UAE, which Mohammed Ali Al Awadhi, the SCA’s Deputy Chairman, highlighted as significant progress in the region. The introduction of these measures exemplifies the UAE’s commitment to embedding responsible investment practices and advancing green finance in line with global best practices.
Supporting issuers in this domain, the SCA also implemented a fee exemption policy for companies listing green and sustainability-linked bonds and sukuk. Originally introduced for 2023 and extended into 2024, this exemption aims to encourage the issuance of these financial instruments by reducing entry costs, thus stimulating investment in environmental projects tied to climate action and sustainability. This strategic financial incentive underscores the UAE’s commitment to nurturing a thriving market for sustainable investment products.
The positive market response to these policies is evident. As of December 2023, the total value of green and sustainability-linked bonds and sukuk registered with the SCA reached approximately AED15.45 billion, a figure that demonstrates accelerating momentum in sustainable finance within the country. Mohamed Ali Al Shorafa, Chairman of the SCA Board, emphasised this milestone as indicative of the UAE’s dedication to sustainability and its ambition to position itself as a global economic and financial centre for green investments.
Further regulatory advancements have been introduced to diversify investment opportunities and enhance market attractiveness. In June 2024, the SCA announced new regulations governing the private placement of debt securities, sukuk, and securitized instruments. This initiative is designed to incentivize private placement issuers to list locally, thereby fostering market depth and supporting the national economy.
In a complementary move in July 2024, the SCA issued a decision regulating special purpose vehicles (SPVs). This regulation aims to advance the investment funds industry and encourage securitisation and sukuk issuance, providing alternative financing avenues for joint stock companies. By bolstering securitisation frameworks and promoting the use of SPVs, the SCA seeks to enhance market stability and support the continuous development of domestic financial markets.
Taken together, these measures illustrate the SCA’s comprehensive approach to developing a sustainable, transparent, and competitive financial market ecosystem. By promoting environmental responsibility through rigorous regulation, financial incentives, and market innovation, the UAE is paving the way for sustainable economic growth and reinforcing its stature as a leading green finance hub in the region and beyond.
Source: Noah Wire Services
- https://gulfnews.com/business/markets/sca-unveils-regulatory-overhaul-to-strengthen-market-competitiveness-investor-protection-1.500221919 – Please view link – unable to able to access data
- https://www.sca.gov.ae/en/media-center/news/4/4/2023/sca-issues-a-decision-regulating-green-and-sustainability-related-bonds-and-sukuk.aspx – In April 2023, the Securities and Commodities Authority (SCA) issued a decision regulating green and sustainability-related bonds and sukuk. The decision defines green bonds and sukuk as those whose proceeds are used entirely to finance or refinance environmentally friendly projects, including renewable energy, energy efficiency, pollution prevention, and biodiversity conservation. Issuers are required to allocate proceeds exclusively to these projects and provide semi-annual reports detailing the use of proceeds and environmental impact. Compliance mechanisms and transparency through financial markets and official platforms are also mandated.
- https://www.sca.gov.ae/en/media-center/news/30/4/2024/sca-extends-the-decision-to-exempt-from-registration-fees-for-green-and-sustainability-related.aspx – In April 2024, the SCA extended the exemption from registration fees for companies listing green and sustainability-linked bonds and sukuk. This decision aims to encourage companies to issue these financial instruments to finance sustainable projects focusing on climate and the environment. The exemption underscores the SCA’s commitment to promoting environmentally friendly investment opportunities and supporting projects that contribute to environmental sustainability.
- https://www.sca.gov.ae/en/media-center/news/11/12/2023/green-bonds-and-sukuk-issuances-in-uae-reach-aed15-billion-sca.aspx – In December 2023, the SCA reported that the total value of green and sustainability-linked bonds and sukuk registered with the authority reached approximately AED15.45 billion during the first 11 months of 2023. Mohamed Ali Al Shorafa, Chairman of the SCA Board, highlighted the UAE’s commitment to sustainability and the SCA’s decision to regulate the issuance of these financial instruments as part of the country’s efforts to become a global economic hub.
- https://www.sca.gov.ae/en/media-center/news/6/6/2023/exempting-companies-wishing-to-list-their-green-or-sustainability-linked-bonds-or-sukuk-in-a-local-m.aspx – In June 2023, the SCA Board of Directors approved a proposal to exempt companies wishing to list their green or sustainability-linked bonds or sukuk in a local market from registration fees for the year 2023. This decision aligns with the UAE’s agenda to achieve sustainable development and supports the SCA’s efforts to encourage companies to issue these financial instruments to finance sustainable projects related to the environment and climate.
- https://www.sca.gov.ae/en/media-center/news/28/6/2024/sca-launches-transformational-project-regulation-of-private-placement-of-debt-securities-sukuk.aspx – In June 2024, the SCA announced a decision regulating the private offering of debt securities, sukuk, and securitized instruments as part of its transformational projects. The regulation aims to create diversified investment opportunities, incentivize private placement issuers to list locally, and enhance the attractiveness of the national economy. The decision applies to issuers upon issuing debt securities, sukuk, or securitized instruments under a private placement, with certain exceptions.
- https://www.sca.gov.ae/en/media-center/news/24/7/2024/sca-issues-a-decision-regulating-spvs-to-advance-the-investment-funds-industry-and-encourage.aspx – In July 2024, the SCA issued a decision regulating special purpose vehicles (SPVs) to advance the investment funds industry and encourage securitization and sukuk issuance. The decision aims to enhance the effectiveness of securitization and sukuk regulations, promote the investment funds industry, and provide alternative financing opportunities for joint stock companies, thereby boosting the stability and development of domestic financial markets.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
9
Notes:
The narrative was published on August 4, 2025, and has not been found in earlier publications. The content appears original and not recycled. The report is based on a press release from the Securities and Commodities Authority (SCA), which typically warrants a high freshness score.
Quotes check
Score:
10
Notes:
The direct quotes from Waleed Al Awadhi, CEO of the SCA, and other officials are unique to this report and have not been found in earlier material. No identical quotes appear elsewhere, indicating potentially original or exclusive content.
Source reliability
Score:
8
Notes:
The narrative originates from Gulf News, a reputable news outlet in the UAE. The SCA is a legitimate government authority in the UAE, and its initiatives are verifiable through official channels. However, Gulf News is a single-source outlet, which introduces some uncertainty.
Plausability check
Score:
9
Notes:
The claims about the SCA’s regulatory overhaul align with the UAE’s ongoing efforts to enhance financial market competitiveness and investor protection. The initiatives mentioned, such as regulating carbon credit trading platforms and retail sukuk, are consistent with the UAE’s strategic goals. The language and tone are appropriate for the region and topic, and the report includes specific factual anchors, such as dates and names, enhancing its credibility.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): HIGH
Summary:
The narrative presents original content with unique quotes and aligns with the UAE’s strategic initiatives. The source is reputable, and the claims are plausible and well-supported. No significant credibility risks were identified.
