The Securities and Commodities Authority (SCA) is a
federal financial regulatory agency in the
United Arab Emirates
The United Arab Emirates (UAE; ar, اَلْإِمَارَات الْعَرَبِيَة الْمُتَحِدَة ), or simply the Emirates ( ar, الِْإمَارَات ), is a country in Western Asia ( The Middle East). It is located at t ...
. It was established based on Federal Decree No. (4) of 2000 by then-president of the UAE,
Khalifa Bin Zayed Al Nahyan
Sheikh Khalifa bin Zayed bin Sultan Al Nahyan ( ar, خليفة بن زايد بن سلطان آل نهيان; 7 September 1948 – 13 May 2022) was the second president of the United Arab Emirates and the ruler of Abu Dhabi, serving from ...
and it's amendments issued in Federal Law 25 of 2006, amending the former law.
The authority is a federal government agency, which is financially and administratively independent, headed by a
CEO and a chairman of a board of directors, both appointed by the
President of the UAE
The president of the United Arab Emirates, or the Raʾīs ( ar, رَئِيْس), is the head of state of the United Arab Emirates (UAE).
The president and vice-president are elected every five years by the Federal Supreme Council. Though the ...
. The main objective of the authority is to supervise and monitor financial markets in the UAE, including the
Dubai Financial Market
The Dubai Financial Market (DFM) ( ar, سوق دبي المالي) is a stock exchange located in Dubai, United Arab Emirates. It was founded on 26 March 2000.
Overview
, there are 67 companies listed on DFM. Most of them are UAE-based companie ...
and the
Abu Dhabi Securities Exchange
Abu Dhabi Securities Exchange (A.D.X.; formerly Abu Dhabi Securities Market (ADSM); ar, سوق أبو ظبي للأوراق المالية) is a stock exchange in Abu Dhabi, United Arab Emirates (UAE).
Listed companies by sector
List provided by ...
. However, it is not responsible for regulating financial activity in
free economic zones such as the
Dubai International Financial Centre
The Dubai International Financial Centre (DIFC) is a special economic zone in Dubai covering , established in 2004 as a financial hub for companies operating throughout the Middle East, Africa and South Asia (MEASA) markets. DIFC is regulated b ...
, which are regulated by independent laws and courts such as the
DIFC Courts.
History
The Securities and Commodities Authority (SCA) was established by Federal Law No. (4) of 2000 enacted by
Zayed bin Sultan Al Nahyan
Sheikh Zayed bin Sultan Al Nahyan ( ar, زَايِد بِن سُلْطَان آل نَهْيَان, Zāyed bin Sulṭān Āl Nahyān; 6 May 1918 – 2 November 2004) was an Emirati politician, statesman, and philanthropist who served as ...
as the first legislation for securities in the UAE and was initially named Emirates Securities & Commodities Authority and Market. The first two exchange markets, the
Abu Dhabi Securities Exchange
Abu Dhabi Securities Exchange (A.D.X.; formerly Abu Dhabi Securities Market (ADSM); ar, سوق أبو ظبي للأوراق المالية) is a stock exchange in Abu Dhabi, United Arab Emirates (UAE).
Listed companies by sector
List provided by ...
and the
Dubai Financial Market
The Dubai Financial Market (DFM) ( ar, سوق دبي المالي) is a stock exchange located in Dubai, United Arab Emirates. It was founded on 26 March 2000.
Overview
, there are 67 companies listed on DFM. Most of them are UAE-based companie ...
would be founded shortly after in the same year.
In 2004, Dubai established the
Dubai Financial Services Authority
The Dubai Financial Services Authority (DFSA) is the financial regulatory agency of the special economic zone, the Dubai International Financial Centre (DIFC), In Dubai, United Arab Emirates. It is distinct from the UAE's federal Securities and Co ...
, which would be the sole regulatory authority for the economic free zone of
Dubai International Financial Centre
The Dubai International Financial Centre (DIFC) is a special economic zone in Dubai covering , established in 2004 as a financial hub for companies operating throughout the Middle East, Africa and South Asia (MEASA) markets. DIFC is regulated b ...
, which included independent exchanges such as
Nasdaq Dubai outside of the control of the SCA.
In 2006, UAE president
Khalifa bin Zayed Al Nahyan
Sheikh Khalifa bin Zayed bin Sultan Al Nahyan ( ar, خليفة بن زايد بن سلطان آل نهيان; 7 September 1948 – 13 May 2022) was the second president of the United Arab Emirates and the ruler of Abu Dhabi, serving from ...
issued Law 25 of 2006 amending certain provisions of the prior law, removing the requirement of the board of directors to represent various governmental departments and the reducing the board of directors from 8 board members to 5 and expanding the requirement for board members to declare any securities or stock they own, or stock owned by the board member's family and minor children.
Organisational structure
The SCA is regulated by UAE Federal Decree 4 of 2000 and is granted some autonomy from the UAE
Ministry of Finance A ministry of finance is a part of the government in most countries that is responsible for matters related to the finance.
Lists of current ministries of finance
Named "Ministry"
* Ministry of Finance (Afghanistan)
* Ministry of Finance and Ec ...
, to which it reports. The SCA has the right to issue regulations, frameworks, and guidelines according to federal law or executive instruction. The SCA is governed by a chief executive officer that handles the day-to-day management of the authority, and a board of directors chaired by the minister of finance. The minister of finance, acting as chairman, and the chief executive would jointly appoint the remaining 5 members of the board of directors, who would serve a four-year term renewable once. The authority prevents any of the board members from acting in a similar capacity with any financial broker or public company.
The SCA is organised into departments that report to the chief executive, which include:
* Supervision Department
* Issues and Disclosure Department
* Human Resources and Financial Affairs Department
* Research and Technical Support Department
* Commodities Department
* Enforcement Department
See also
*
Dubai Gold & Commodities Exchange
*
Dubai Financial Market
The Dubai Financial Market (DFM) ( ar, سوق دبي المالي) is a stock exchange located in Dubai, United Arab Emirates. It was founded on 26 March 2000.
Overview
, there are 67 companies listed on DFM. Most of them are UAE-based companie ...
References
External links
"Securities and Commodities Authority"
{{authority control
Government agencies of the United Arab Emirates
Government agencies established in 2000
Financial regulatory authorities of the United Arab Emirates
Regulation in the United Arab Emirates