UAE’s SCA cracks down on market risks with new digital watchdog system

The Securities and Commodities Authority (SCA) has taken a major step towards smarter financial regulation with the launch of an updated risk assessment methodology presented to licensed companies at a large workshop in Abu Dhabi.

The authority said the new model aligns with international best practice and strengthens its ability to maintain market stability.

More than 587 representatives from over 215 companies attended the workshop, signalling strong engagement from the sector as it adapts to new supervisory expectations and rising compliance standards.

SCA launches updated risk framework

SCA representatives outlined the enhanced annual risk assessment framework, which will guide oversight efforts in the year ahead. The methodology identifies priority risk areas, including money laundering and terrorism financing, solvency and financial risks, market conduct and investor protection, governance and operational risks, and cybersecurity and technology-related threats.

Officials also introduced a new electronic system for receiving corporate submissions. Companies were shown how to complete digital forms and upload required information securely. The authority said the shift to digital supervision will not only streamline reporting but also improve its ability to anticipate risks, act proactively and support regulated entities in meeting compliance obligations.

The new methodology reduces administrative burdens by cutting redundant reporting and simplifying data collection. The authority said these improvements will enhance supervisory efficiency and create a more supportive business environment.

Waleed Saeed Al Awadhi, CEO of the SCA, said: “This day marks a turning point in the evolution of the UAE’s financial sector. The launch of the updated risk-assessment methodology is more than an enhanced supervisory approach; it is a comprehensive strategy to build a sustainable and resilient financial sector capable of navigating emerging challenges. It helps strengthen risk-based oversight, foster compliance, and reinforce investor confidence in the UAE’s markets, ultimately enhancing the competitiveness and attractiveness of the national economy.”

The SCA said the strong participation in the workshop reflects the sector’s commitment to modern regulation and risk management. It stressed the importance of continued collaboration with licensed companies to ensure smooth implementation of the new framework and to reinforce market resilience.

The authority said the initiative reinforces its position as an innovative regulator focused on transparency, efficiency and stability across the UAE’s financial markets.