As financial markets worldwide undergo rapid digital transformation, the UAE continues to establish itself as a leader in fintech innovation and regulation. In a significant move aligned with global trends, the Securities and Commodities Authority (SCA) has approved regulations for Robo-Advisor services, reinforcing the country’s commitment to building a secure, intelligent, and investor-focused digital investment environment.

The newly approved framework is part of the SCA’s broader transformation agenda and aims to strengthen the UAE’s position as a leading financial hub. It allows licensed portfolio management firms to offer Robo-Advisory services exclusively through digital platforms powered by AI and advanced algorithms. These platforms provide automated investment recommendations tailored to individual investors’ goals and risk profiles.

This regulatory initiative reflects the SCA’s commitment to fostering innovation, enhancing investor protection, and supporting the UAE’s “We the UAE 2031” vision to build a knowledge-based, sustainable, and competitive economy. Robo-Advisors will now operate under strict governance guidelines, including independent IT audits, robust cybersecurity measures, regular algorithm reviews, and transparent disclosures of fees and risks.

Waleed Saeed Al Awadhi, CEO of the SCA, stated, “The regulation of the Robo-Advisor service is a clear manifestation of our strategic vision to build a forward-looking regulatory framework that keeps pace with the profound shifts in the global financial sector and redefines investor protection standards in line with accelerating digital advancements. The integration of AI into investment decision-making is not merely a technological development; it is a transformative turning point that enhances portfolio management efficiency and unlocks unprecedented opportunities to empower investors with smart, sustainable, and secure financial solutions.”

He added that this regulation also strengthens the UAE’s position as a global financial centre by promoting innovation and preparing markets to meet future challenges. The SCA views this as a key step in its mission to enhance financial inclusion and build digital resilience.