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Dr. Obaid Al Zaabi:
- We are developing a regulatory sandbox that is intended to be a testing environment designed to experiment safely with new services and products that bring added value to the markets.
- We are drawing a comprehensive road map for developing and promoting sustainable capital markets and green financial markets.
Dr. Obaid Al Zaabi, CEO of the Securities and Commodities Authority (SCA), stressed that the financial sector continues to play a vital role in supporting the country's vision of a global economic hub by pursuing several strategies, most notably transitioning to a knowledge-based economy; encouraging innovation, research, and development; enhancing the regulatory framework of key sectors; and encouraging high added-value businesses.
Delivering the keynote speech at the HSBC Financial Services Forum, Dr. Al Zaabi said that the significance of the financial system lies in its active role in the successful allocation of capital and economic resources, indicating that regulatory authorities across the globe are facing increasing challenges in performing their role, including the economic and legal developments and the technological advances.
Dr. Al Zaabi added that SCA had come a long way over the past year. It encouraged financial sector innovation and is currently working with key stakeholders and advisors to develop a regulatory sandbox intended to be a safe testing environment that proves beneficial to capital markets and consumers of financial products and services. He said that SCA is also working to adopt the most appropriate regulatory approach that tends to create an environment fostering innovation and healthy competition, while taking into consideration our other key regulatory goals, among which is the protection of investors and markets.
At the same time, SCA launched an initiative, in accordance with the vision of the country's wise leadership, to draw a comprehensive road map aimed at developing sustainable capital markets and green financial markets. It is currently holding round-table discussions with all private and public stakeholders to get their feedback and support for the implementation of this initiative.
In terms of easing access to financing and to capital markets, Dr. Al Zaabi said that SCA is currently considering establishing a secondary, separate market platform for listing and trading stocks and debt instruments of SEMs and emerging companies. It is also supporting other financing methods, such as private equity, venture capital, asset-based finance, and securitization.
He further explained that SCA is also working closely with the domestic financial markets to ensure a smooth implementation of the self-regulatory organization (SRO) model, trusting that this model is capable of increasing the quality and efficiency of the regulatory and supervisory positions.
