UAE Embeds Robo-Advisers in Federal Financial Framework
The Securities and Commodities Authority has granted formal approval for licensed portfolio management firms to offer robo-advisory services across the UAE mainland, marking a substantial enhancement to the nation's digital investing infrastructure.
This federal authorisation extends beyond the jurisdiction of financial free zones such as the Dubai International Financial Centre and Abu Dhabi's FSRA, bringing all robo-investment services under a unified regulatory umbrella. The move is expected to reinforce protections for retail investors via stricter oversight and compliance requirements.
ADVERTISEMENT
Under the new regime, firms will deliver automated investment recommendations powered by artificial intelligence and advanced algorithms. These platforms evaluate individual risk profiles to design tailored asset allocations, typically leveraging exchange‑traded funds or index funds at lower cost than conventional advisory channels.
The SCA mandates a comprehensive governance framework: independent IT audits, stringent cybersecurity protocols, periodic algorithm reviews and transparent disclosures of fees and investment risks. Licensed providers will adhere to the existing discretionary and non‑discretionary portfolio management frameworks within client agreements.
SCA CEO Waleed Saeed Al Awadhi described the regulation as a manifestation of the UAE's strategic digital transformation. He stated that integrating AI into investment decision-making will enhance efficiency and create 'smart, sustainable, and secure financial solutions,' reinforcing the UAE's goal of becoming a world-class financial hub.
Market analysts note that assets under management in global robo-advisory were forecast to reach US $2.06 trillion in 2025, with user numbers hitting 34 million by 2029. In the UAE, platforms such as Sarwa, StashAway and Baraka currently operate under DIFC and FSRA regulation, but this federal licence allows them to onboard mainland clients directly.
Retail investor appetite for technology-driven investment options has surged, as seen in the rising adoption of zero‑commission trading platforms including Robinhood, eToro and Interactive Brokers. The introduction of a federal licence for robo‑advisers is expected to broaden participation further.
Industry experts emphasise both promise and caution. Vijay Valecha, chief investment officer at Century Financial, applauds the harmonisation of regulation across jurisdictions, stating it 'provides further protection and transparency to retail investors' and bolsters international competitiveness. Raaed Sheibani of StashAway commented that the clearer regulation framework will 'expand digital investing in the UAE' and boost investor confidence.
However, concerns endure regarding the limitations of algorithmic advice. Rupert Connor of Abacus Financial Consultants warned that robo-advisers often lack capacity to handle complex scenarios involving tax planning, inheritance, or behavioural guidance during volatile markets. Financial coach Jay Adrian Tolentino added that algorithm-based systems may miss elements of personal context that can be crucial. Technical vulnerabilities, including outages or system failures, also remain a potential risk.
With stricter federal oversight, the SCA expects a rise in trust and participation from mainland investors, leveraging automation to democratise wealth creation. The initiative aligns with the UAE's broader 'We the UAE 2031' vision of fostering a knowledge-based, resilient economy through fintech innovation.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Gulf Today
4 hours ago
- Gulf Today
BRICS nations slam Trump tariffs, condemn strikes on Iran
BRICS leaders at a summit on Sunday took aim at US President Donald Trump's "indiscriminate" import tariffs and recent Israeli-US strikes on Iran. The 11 emerging nations -- including Brazil, Russia, India, China and South Africa -- account for about half the world's population and 40 per cent of global economic output. The bloc is divided about much, but found common cause when it comes to the mercurial US leader and his stop-start tariff wars -- even if it avoided naming him directly. Voicing "serious concerns about the rise of unilateral tariff" measures, BRICS members said the tariffs risked hurting the global economy, according to a summit joint statement. Trump fired back at the bloc directly on social media Sunday night. "Any country aligning themselves with the Anti-American policies of BRICS will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy," Trump wrote on his Truth Social platform. Russia's President Vladimir Putin appears on a screen as he attends the opening meeting of BRICS Summit remotely with Brazil's President Luiz Inacio Lula da Silva, at the Museum of Modern Art (MAM) in Rio de Janeiro, Brazil, on Sunday. Reuters Earlier, BRICS also offered symbolic backing to fellow member Iran, condemning a series of military strikes on nuclear and other targets carried out by Israel and the United States. In April, Trump threatened allies and rivals alike with a slew of punitive duties, before offering a months-long reprieve in the face of a fierce market sell-off. Trump has warned he will impose unilateral levies on partners unless they reach "deals" by August 1. In an apparent concession to US allies such as Brazil, India and Saudi Arabia, the summit declaration did not criticize the United States or its president by name at any point. No show Conceived two decades ago as a forum for fast-growing economies, the BRICS have come to be seen as a Chinese-driven counterbalance to US and western European power. But as the group has expanded to include Iran, Saudi Arabia and others, it has struggled to reach meaningful consensus on issues from the Gaza war to challenging US global dominance. BRICS nations, for example, collectively called for a peaceful two-state solution to the Israel-Palestinian conflict -- despite Tehran's long-standing position that Israel should be destroyed. An Iranian diplomatic source said his government's "reservations" had been conveyed to Brazilian hosts. Still, Iran -- a BRICS member since 2023 -- stopped short of rejecting the statement outright. The bloc also called for an "immediate" ceasefire and the "full withdrawal of Israeli forces" from the Gaza Strip, where Israel has been at war with the Palestinian group Hamas for 21 months. Hamas's armed wing welcomed BRICS's position, calling on them to "exert pressure" on Israel to "lift the criminal siege imposed on two and a quarter million people." In perhaps a further sign of the diplomatic sensitivities, Saudi Arabia's foreign minister skipped Sunday's discussions entirely, according to a Brazilian government source. World leaders partake in the 17th annual BRICS summit in Rio de Janeiro, Brazil, on Sunday. AP Saudi Arabia is among the world's leading beneficiaries of high-tech US military exports and is a long-standing US partner. The political punch of this year's summit has been depleted by the absence of China's Xi Jinping, who skipped the meeting for the first time in his 12 years as president. The Chinese leader is not the only notable absentee. Russian President Vladimir Putin, charged with war crimes in Ukraine, also opted to stay away, participating via video link. He told counterparts that BRICS had become a key player in global governance. The summit also called for regulation governing artificial intelligence and said the technology could not be the preserve of only rich nations. The commercial AI sector is currently dominated by US tech giants, although China and other nations have rapidly developing capacity. Agence France-Presse
Arabian Post
5 hours ago
- Arabian Post
Musk's America Party Backs Bitcoin, Declares Fiat 'Hopeless'
Elon Musk stated that his newly formed America Party will officially support Bitcoin, branding traditional fiat currency as 'hopeless.' He responded succinctly on X to a user asking whether his party would embrace the flagship cryptocurrency: 'Fiat is hopeless, so yes.' Musk's announcement aligns with the party's broader platform of fiscal conservatism, deficit reduction and modernisation of government, which is packaged alongside calls for balanced budgets and strategic investment in technology and national security. He introduced the party on July 5, following a public poll on X in which around two‑thirds of his 1.2 million followers endorsed the move. The billionaire's embrace of Bitcoin reflects his long-standing support for cryptocurrencies. Tesla purchased approximately $1.5 billion in Bitcoin in early 2021 and still holds around 11,509 BTC—though prior plans to accept the currency for vehicle purchases were suspended over environmental concerns. ADVERTISEMENT Encouragement from crypto leaders followed, with some describing Musk's statement as a historic moment for the digital‑asset space. Analysts at Coinpedia noted that the alignment between a political movement and the digital economy could mark a turning point. Market response was immediate: Bitcoin briefly rallied to near US $110,000 before stabilising. Musk is positioning the America Party not merely as a crypto‑friendly political entity, but as a force targeting legislative chokepoints. He has outlined plans to field candidates in a limited number of competitive Senate and House races—'two or three Senate seats and eight to ten House districts'—with the aim of becoming a decisive swing vote in Congress. The strategy draws inspiration from military tactics: Musk compared it to how ancient Theban general Epaminondas concentrated forces at critical points to win battles. The America Party's ideological core emphasises financial prudence, reduced regulation, and public-sector innovation. The move marks a further escalation in Musk's dispute with Donald Trump, which began after Musk criticised Trump's 'One Big Beautiful Bill' for adding trillions to the national debt. Trump has derided the America Party as a 'train wreck' and 'ridiculous,' warning it will fracture conservative support and sow chaos in the US political system. Washington insiders caution that third-party efforts in the United States face steep hurdles. These include challenging ballot access laws, entrenched political loyalties, and the structural bias of the winner‑take‑all electoral process. Experts say that while Musk's finances and profile offer resources, success remains far from certain. Despite scepticism, the emergence of a crypto‑friendly political platform led by a high‑profile figure may signal broader shifts in US political and fiscal dialogue. If the America Party proceeds with its plan to integrate Bitcoin and digital asset advocacy into its legislative agenda, it could set precedents in campaign finance and monetary policy discussions.
TECHx
9 hours ago
- TECHx
PwC Reveals $232B AI Opportunity for Middle East
Home » Emerging technologies » Artificial Intelligence » PwC Reveals $232B AI Opportunity for Middle East PwC has released new research outlining three data-driven scenarios for the Middle East by 2035. The report highlights a US$232 billion economic opportunity if the region effectively harnesses AI and manages climate risks. Titled Value in Motion: The Middle East's time to lead is now , the study reported that regional governments and businesses could significantly boost productivity through AI adoption. PwC revealed that if AI-driven gains are realized and climate change is addressed, the region's real GDP could reach US$4.68 trillion by 2035. However, in a business-as-usual scenario, GDP is expected to grow by 41.8%, reaching US$4.57 trillion. Factoring in climate risks like heatwaves and water scarcity could reduce this growth to 27.9%. At stake is a potential US$232 billion gap between the most optimistic and constrained futures. The most positive outcome includes: An 8.3% GDP boost from widespread AI adoption Additional growth through decisive climate action The research introduces a framework built around new 'domains of growth.' These domains redefine how industries operate across areas like mobility, energy, healthcare, digital infrastructure, and connectivity. According to PwC, these shifts will create cross-sector opportunities and encourage innovation. The report also emphasized the region's strategic advantages, including bold climate goals, access to low-cost renewable energy, and rapid AI infrastructure growth. PwC noted that these factors position the Middle East to lead in sustainable, tech-driven growth. Stephen Anderson, Chief Strategy & Technology Officer at PwC Middle East, said the coming decade will test the region's imagination and capabilities. He urged businesses and governments to move with 'pace, purpose, and partnership' to remain competitive. PwC reported that clean energy will play a critical role in powering AI infrastructure. As global hyperscalers expand, the region could become a hub for AI and cloud services. Dr. Yahya Anouti, Partner at Strategy& and PwC Middle East Sustainability Platform Leader, noted that balancing the cost of AI with clean energy scalability will be essential to unlocking the region's potential. The report called on regional stakeholders to act decisively. It recommended: Governments redesign institutions to reflect evolving human needs Businesses revamp models to align with a digital, low-carbon economy Academia develop future-ready talent and foster innovation PwC concluded that the Middle East has the tools and vision to lead. The value is already in motion. Now is the time to act.
