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Monday, January 19, 2026
SCA Changed to CMA: What Does It Mean for Traders in the UAE?
By Century Financial in 'Blog'
SCA Changed to CMA: What Does It Mean for Traders in the UAE?
Regulatory changes often sound intimidating to traders, especially when they involve familiar institutions being renamed or restructured.
As of January 1st, 2026, many traders in the UAE have come across headlines highlighting that the Securities and Commodities Authority (SCA) has changed to the Capital Markets Authority (CMA).
This naturally raises questions: Is this a major shift? Does it affect trading accounts? Are brokers still licensed? And most importantly, should traders be concerned?
The reality is far more reassuring than the headlines suggest. This change represents a regulatory evolution rather than a disruption, and for most traders, it’s a positive development that strengthens market oversight without interfering with day-to-day trading activity.
Let’s walk through what happened, why it matters, and what it means for traders in the UAE.
SCA to CMA – What’s the Big Announcement?
What happened
The UAE has been steadily modernizing its financial regulatory framework to keep pace with the country’s rapidly growing capital markets. As part of this evolution, the regulatory structure previously operating under the Securities and Commodities Authority (SCA) has transitioned to Capital Markets Authority (CMA) pursuant to Federal Decree-Law No. (32) of 2025 and Federal Decree-Law No. (33) of 2025, issued by the President of the United Arab Emirates, which establish the regulatory framework for the capital markets sector and the Capital Market Authority.
This does not mean that regulation has stopped or been paused. Instead, it reflects a structural and strategic shift in how capital markets are supervised, governed, and aligned with global best practices.
Why this is important news
Regulatory bodies define how markets function behind the scenes. When a regulator evolves, it often signals that markets have grown more sophisticated, more international, and more complex. The UAE’s markets today are significantly larger, more liquid, and more globally connected than they were a decade ago. A capital market regulatory framework is designed specifically for this level of maturity.
Additionally, with CMA, they will be introducing new regulated financial activities.
Why traders should care
Traders care about three things above all else: market access, fund security, and regulatory protection. Any regulatory update naturally raises concerns about whether trading conditions will change. In this case, the answer is reassuring that the changes will strengthening the Capital Market Authority’s supervisory powers over the capital markets sector.
Quick Recap: What Was SCA and What Is CMA?
To understand the transition, it helps to clarify the roles of both entities.
The Securities and Commodities Authority (SCA) was responsible for regulating securities markets, commodities, and licensed financial activities in the UAE. It established rules for brokers, exchanges, and market participants, ensuring orderly and transparent markets.
The Capital Markets Authority (CMA) represents a focused and globally recognized regulatory framework, emphasizing capital markets oversight, investor protection, institutional supervision, and resolution mechanism. CMA builds upon the regulatory foundation already laid by SCA.
In essence, CMA is an evolution of the same regulatory mandate, adapted for a more advanced financial ecosystem.
Why Did the UAE Change SCA to CMA Now?
Regulatory evolution
Over the past few years, the UAE has seen significant growth in trading volumes, product diversity, and international participation. Regulatory frameworks must evolve alongside these developments to remain effective and credible.Market maturity
The UAE is no longer positioning itself as an emerging financial centre. With increased participation from institutional investors, global brokers, and sophisticated retail traders, the regulatory environment must reflect the maturity of being a major financial centre.International alignment
Many of the world’s leading financial hubs operate under CMA style regulatory structures. Aligning with these models enhances cross-border recognition, investor confidence, and regulatory cooperation with global institutions.Does This Change Affect Traders in the UAE?
Trading continues as usual. Orders are executed the same way, platforms operate without interruption, and existing trading strategies remain unaffected. The changes occur primarily at the regulatory and supervisory level, improving how brokers are monitored and enhancing investor protection.
The CMA model will also have the power to enter into conciliation before the initiation of criminal proceedings. Along with this, CMA will have the authority to designate systemically important persons and to regulate early intervention, settlement, and resolution mechanisms.
Trading accounts
Your existing trading account remains valid. There is no requirement to close accounts, re-open them, or transfer funds due to the regulatory transition.
Broker regulation
Brokers continue to be regulated, licensed, and supervised, however under an updated framework that emphasizes stronger governance and oversight.
Compliance and safety
Over time, the reforms are expected to strengthen the Capital Market Authority’s supervisory powers over the capital markets sector, reinforcing oversight and market integrity. The CMA will also regulate the Investor Protection Fund and the Settlement Guarantee Fund.
What About Brokers? Do They Need a New License?
The regulator ensures that compliant brokers remain authorized while aligning with updated regulatory standards.
Do Traders Need to Take Any Action?
Existing accounts
No immediate action is required from traders. Your trading activity can continue as normal.
KYC and compliance
Unless your broker directly contacts you requesting updated documentation, there is nothing new you need to submit solely because of the CMA transition.
Final Verdict: Should Traders Be Worried or Confident?
Traders should feel confident, not concerned.
The transition from SCA to CMA reflects the UAE’s commitment to strengthening its financial markets, enhancing regulatory oversight, and aligning with global standards. For traders, this means operating in a more credible, transparent, and secure market environment without sacrificing flexibility or access.
In short, this change supports the long-term health of the UAE trading ecosystem while leaving day-to-day trading exactly where it should be, in your control.
FAQs on the SCA to CMA Change
Q1. Are SCA licenses still valid?
A: Yes. Licensed brokers and market participants remain authorized during and after the transition.
Q2: Will this affect my trading account?
A: No. Your account, funds, and positions remain unchanged.
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