UAE Securities and Commodities Authority (SCA)

Overview

The Securities and Commodities Authority (SCA), now operating as the Capital Market Authority (CMA), is the federal-level financial regulatory agency in the United Arab Emirates responsible for supervision and regulation of securities, commodities, virtual assets, and capital markets. The SCA operates exclusively in the federal UAE jurisdiction, excluding the Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM), which maintain their own independent regulators.

Historical Context

The SCA was established by Federal Decree No. (4) of 2000 and subsequently amended under Federal Law No. 25 of 2006. The transition to the Capital Market Authority on January 1, 2026, represents a modernization of UAE capital markets regulation under Decree-Laws No. (32) and No. (33) of 2025. The CMA is the legal successor to the SCA and has assumed all rights, obligations, and contracts of its predecessor.

Regulatory Mandate

The primary purpose of the authority is to:

• Regulate and supervise the UAE's securities and commodities markets

• Ensure market transparency and protect investors

• Enhance the efficiency of financial markets

• Monitor and license regulated entities

• Promote fair trading practices and investor confidence

• Oversee licensing, compliance, and market surveillance

• Regulate Virtual Asset Service Providers (VASPs)

Basic Identity

File ID: A108-AE-NAT-securities-and-commodities-authority

Regulator Type: National / Federal Securities Regulator

Authority Level: Layer 1 (Binding)

Entity Status: Active (Operating as Capital Market Authority as of 2026-01-01)

Last Updated: 2026-04-05

Verification Status: Verified against official sources (95% confidence)

Next Review Date: 2027-04-05 (Annual)

Classification

Inclusion Justification

What This Entity Oversees

Federal Securities Regulator for the UAE

Official Name: Securities and Commodities Authority (SCA) / Capital Market Authority (CMA)

Establishment: January 29, 2000 (Federal Decree)

Website: https://www.sca.gov.ae/en/home.aspx

Status Note: The SCA was officially replaced by the Capital Market Authority (CMA) effective January 1, 2026, under Federal Decree-Laws No. (32) and No. (33) of 2025. The entity continues operations as the CMA with expanded regulatory scope.

Inspection and Examination Authority

The SCA possesses broad investigatory and examination powers including:

• Scheduled and unscheduled inspections of licensed entities

• Document requests and data retrieval authority

• On-site examination of operations and compliance systems

• Senior management and board interviews

• Testing of risk management and control systems

• AML/CFT compliance examinations

Supervision Framework Requires verification from official sources

The SCA employs a risk-based supervision model including:

• Ongoing monitoring of financial condition and compliance

• Annual regulatory reporting requirements

• Quarterly or periodic compliance submissions

• Market conduct surveillance systems

• Counterparty risk monitoring

• Capital adequacy reviews

Capital and Financial Requirements Requires verification from official sources

The SCA specifies minimum capital requirements for licensed entities based on:

• Nature and scope of regulated activities

• Risk profile and volume of client assets

• Type of business (broker, advisor, custodian, etc.)

• Risk management and operational complexity

Framework and Authority

The SCA is charged with protecting investors in securities and commodities markets through:

Market Integrity:

• Prohibition of market manipulation and insider trading

• Fair dealing and best execution standards

• Segregation of client assets from firm assets

• Suitability and appropriateness requirements

• Sales practice standards and sales force regulation

Disclosure Requirements:

• Mandatory prospectus and offering documentation

• Periodic financial and operational reporting

• Material event disclosure obligations

• Beneficial ownership and conflicts disclosure

• Risk factor and investment strategy transparency

Retail Investor Protections:

• Suitability determinations for product sales

• Conflicts of interest management

• Anti-fraud and misrepresentation enforcement

• Complaint handling and dispute resolution

• Investor education initiatives Requires verification from official sources

Dispute Resolution and Complaints

Complaint Handling:

• Direct complaints accepted from investors to SCA

• Internal complaints procedures at licensed entities

• Regulatory oversight of internal complaint processes

• Investigation authority for complaint disputes

Remediation:

• Restitution authority for injured investors

• Compensation from firm assets or insurance Requires verification from official sources

• Rescission rights in cases of fraud or misrepresentation Requires verification from official sources

Regulatory Powers

Authority and Scope

The CMA (successor to the SCA) possesses comprehensive enforcement powers including:

Administrative Authority:

• Authorization and licensing of regulated entities

• Ongoing supervision of compliance

• Inspections and investigative inquiries

• Examination and testing of internal controls

• Information and document requests

Enforcement Actions:

• Imposition of penalties and sanctions

• Suspension or withdrawal of licenses

• Public censure and warning directives

• Remedial orders and corrective action mandates

• Restitution and customer compensation orders Requires verification from official sources

Investigative Powers:

• Full investigatory authority for suspected violations

• Subpoena power for witnesses and documents Requires verification from official sources

• Cooperation with law enforcement and other regulators

• Coordination with federal and local authorities

Penalty Framework

Monetary Penalties:

• Variable fines based on violation severity and entity size

• Fines up to AED 10 million for virtual asset violations

• Additional penalties for related violations Requires verification from official sources

• Asset freezing and disgorgement authority Requires verification from official sources

Licensing Actions:

• Conditional license approval with restrictions

• License suspension for regulatory breaches

• License revocation for material or repeated violations

• Bar from reapplication for specified period Requires verification from official sources

Market Conduct:

• Trading halts and order cancellations for disruptive trading

• Public enforcement actions and settlement agreements

• Cease and desist orders for unlicensed activities

Regulatory Role and Function

Legal Foundation

Primary Legislation

Federal Decree No. (4) of 2000 — Establishes the SCA as a public authority and legal entity within the UAE system

Federal Law No. 25 of 2006 — Amends and updates the SCA law to modernize regulatory authority

Federal Decree-Law No. (32) of 2025 — Establishes the Capital Market Authority (CMA) to replace the SCA

Federal Decree-Law No. (33) of 2025 — Regulation of Capital Markets (comprehensive legal framework under CMA)

Regulatory Framework Documents

• SCA Regulations Library: https://www.sca.gov.ae/en/regulations/regulations-listing.aspx

• Distribution of Competencies and Powers: https://uaelegislation.gov.ae/en/legislations/1962

Delegation Authority

The SCA operates under a delegated authority model for virtual assets. The federal SCA can delegate regulatory authority to Local Licensing Authorities designated within individual Emirates to oversee virtual asset activities within their territories, allowing for specialized localized regulation while maintaining unified federal oversight. For example, in Dubai, the Virtual Assets Regulatory Authority (VARA) operates as a designated local licensing authority under SCA delegation.

Licensing and Authorization Relevance

Regulated Activities and Licensing

The SCA licenses and supervises the following activities:

Securities Markets:

• Securities trading and brokerage services

• Investment advisory services

• Portfolio management

• Custodial services for securities

• Underwriting and securities distribution

• Market-making activities

Commodities Markets:

• Commodity trading platforms and brokers

• Commodity futures contracts

• Commodity derivative products

Market Supervision:

• Monitoring of Dubai Financial Market (DFM)

• Monitoring of Abu Dhabi Securities Exchange (ADX)

• Surveillance for market manipulation and insider trading

• Price discovery mechanisms

Licensing Requirements

Applicants for SCA licensing must demonstrate:

• Sufficient financial resources and capital adequacy

• Good reputation of principals and directors

• Detailed business plan with clear operating procedures

• Necessary professional experience and qualifications

• Senior management qualifications meeting SCA criteria

• Ability to comply with relevant regulatory requirements

• Robust compliance, risk management, and internal control systems

• AML/CFT compliance capabilities

Processing Timelines

• Initial Approval Application: Approximately 20 business days for review and decision

• Final Licensing Application: Approximately 30 business days following approval

Conflicts and Conduct Standards Requires verification from official sources

The SCA mandates:

• Conflicts of interest disclosure and management

• Suitability standards for client recommendations

• Fair dealing and best execution requirements

• Segregation of client assets

• Record retention and reporting obligations

Cabinet Decision Framework

Cabinet Decision No. (111) of 2021 — Regulation of Virtual Assets and their Service Providers

This decision defines virtual assets, establishes licensing requirements, and outlines activities requiring authorization:

• Virtual asset trading platforms and exchanges

• Virtual asset custodial and wallet services

• Virtual asset management services

• Virtual asset payment and settlement services

VASP Licensing and Supervision

The SCA is the federal-level financial services regulator for all Virtual Asset Service Providers (VASPs) across the UAE (outside DIFC and ADGM). VASP licensing and compliance requirements include:

Licensing Requirements:

• Initial application and approval process

• Final licensing submission with full compliance documentation

• Ongoing regulatory compliance monitoring

• Annual compliance certifications

Activities Requiring License:

• Operating virtual currency exchanges

• Custody and wallet management

• Trading and brokerage in virtual assets

• Investment management of virtual assets

• Payment and settlement services in virtual assets

• Listing of virtual currencies on exchanges

Listing and Trading Standards:

• Requirements for listing virtual assets on SCA-regulated platforms (Articles 8, 16, 17, 21 of VA Regulation)

• Listing approval process and listing standards Requires verification from official sources

• Trading halts and suspension authority Requires verification from official sources

• Market conduct rules for virtual asset trading

VARA Coordination Agreement (September 2024)

On September 5, 2024, the SCA and the Virtual Assets Regulatory Authority (VARA) of Dubai entered into a cooperation agreement that:

Delineates Responsibilities:

• VARA licenses and regulates VASPs operating in or targeting Dubai

• SCA maintains federal oversight and coordination authority

• Updates licensing and supervision protocols for VASPs

Operating Model:

• VASPs licensed by VARA are automatically registered with the SCA

• Registration with SCA enables VASPs to operate throughout the UAE (outside DIFC)

• Single licensing pathway via VARA for Dubai-based operations

• Federal coordination maintained through VARA-SCA cooperation framework

Compliance Requirements for VASPs

Anti-Money Laundering (AML):

• Full compliance with UAE AML regulations

• Customer Due Diligence (CDD) requirements

• Enhanced Due Diligence (EDD) for high-risk customers

• Transaction monitoring and suspicious activity reporting

• Know Your Customer (KYC) procedures

International Standards:

• Compliance with Financial Action Task Force (FATF) recommendations

• Alignment with global AML/CFT best practices

• FATF travel rule implementation Requires verification from official sources

Enforcement and Penalties:

• Warnings for compliance violations

• Monetary fines up to AED 10 million (approximately USD 2.7 million)

• License suspension or revocation for material breaches

• Additional remedial actions as determined by SCA Requires verification from official sources

Regulatory Approach

The SCA has demonstrated openness to fintech and market innovation while maintaining consumer protection standards.

Digital Asset Tokenization:

• Security token frameworks and approval process Requires verification from official sources

• Digital representation of traditional securities Requires verification from official sources

• Smart contract and blockchain implementation Requires verification from official sources

• Custody and settlement of tokenized securities Requires verification from official sources

Market Technology:

• Regulatory sandbox or innovation programs Requires verification from official sources

• Emerging technology testing and approval

• RegTech solution endorsements Requires verification from official sources

• API and open banking framework Requires verification from official sources

Consultation on Security Tokens

As of 2025, the SCA has consulted the market on a new Security Token Regime to establish comprehensive rules for:

• Issuance and listing of security tokens

• Trading and settlement of tokenized securities

• Custody and asset servicing for tokens

• Technological infrastructure standards

Payments and Money Movement Relevance

The UAE Securities and Commodities Authority (SCA) has the following relevance to payments and money movement in United Arab Emirates:

Payment Systems Governed or Overseen

The UAE Securities and Commodities Authority (SCA) does not directly operate payment systems. Its role in payment infrastructure is indirect:

The entity's primary payment relevance is through oversight of post-trade infrastructure (clearing, settlement, and custody) rather than direct operation of payment systems.

Relationship to Other Regulators

Regulatory Cooperation

The SCA maintains active international coordination through:

Multilateral Organizations:

• Financial Action Task Force (FATF) compliance and reporting

• International Organization of Securities Commissions (IOSCO) Requires verification from official sources

• G20 financial regulatory working groups Requires verification from official sources

Bilateral Cooperation:

• Memoranda of Understanding (MOUs) with foreign regulators Requires verification from official sources

• Cross-border enforcement cooperation Requires verification from official sources

• Regulatory information sharing agreements Requires verification from official sources

Cross-Border Supervision Requires verification from official sources

The SCA:

• Coordinates with DFSA (DIFC regulator) for regulatory consistency

• Coordinates with FSRA (ADGM regulator) for federal-free zone interface

• Cooperates with UAE Central Bank (CBUAE) on dual-regulated entities

• Participates in federal regulatory coordinating committees

Geography and Jurisdiction Notes

Important Departments and Divisions

Key Public Resources

Leadership

Chairman: Mohamed Ali Al Shorafa

Leadership and Governance:

• Board of Directors: https://www.sca.gov.ae/en/about-us/board-of-directors.aspx

• Chairman Message and Leadership Vision: https://www.sca.gov.ae/en/about-us/chairman-message.aspx

Contact Information

Call Center:

• Phone: +971 800 722 823 (toll-free)

• Alternative: 800 SCA UAE (800 722 823)

General Inquiries:

• Website Contact Form: https://www.sca.gov.ae/en/reach-us/contact-us.aspx

Physical Address: Requires verification from official sources — Contact SCA for current office locations across Abu Dhabi and Dubai

Official Resources

Primary Website: https://www.sca.gov.ae/en/home.aspx

Regulatory Materials:

• Regulations Library: https://www.sca.gov.ae/en/regulations/regulations-listing.aspx

• Services Portal: https://www.sca.gov.ae/en/services.aspx

Social and Professional Networks:

• LinkedIn: https://www.linkedin.com/company/sca.ae

Transition Resources (SCA to CMA)

Capital Market Authority (CMA) Launch:

• Official CMA Website: https://www.sca.gov.ae/en/new-cma-law

• Decree-Law Information and Implementation Timeline

Notes on Naming and Language