SCA — Securities and Commodities Authority
United Arab Emirates | Middle East | Founded 2000
What is the SCA?
The SCA regulates the securities and commodities markets across the UAE (outside the DIFC and ADGM free zones). It oversees stock exchanges, brokerage firms, and investment companies operating under UAE federal law. The SCA has been modernising its regulatory framework to attract international financial firms while maintaining investor protection standards.
What the SCA Does
Licenses and supervises securities firms, brokerage companies, and investment managers operating in the UAE
Regulates the Dubai Financial Market (DFM) and Abu Dhabi Securities Exchange (ADX)
Sets capital requirements and conduct standards for licensed firms
Investigates complaints and can impose fines or revoke licences
Publishes warnings about unauthorised entities targeting UAE investors
What the SCA Protects You From
Unlicensed entities operating in the UAE — the SCA maintains a public register of licensed firms
Broker misconduct within the UAE — the SCA can investigate and take enforcement action
AML violations — licensed firms must comply with UAE anti-money laundering laws
What the SCA Does NOT Protect You From
Trading losses — the SCA protects against misconduct, not market risk
There is no investor compensation scheme for retail forex traders
Non-UAE residents — the SCA's enforcement powers are focused on the UAE market
Entities operating in the DIFC or ADGM — these are regulated by the DFSA and FSRA respectively, not the SCA
Key Requirements for SCA-Regulated Brokers
Obtain an SCA licence to conduct securities business in the UAE
Maintain minimum capital requirements prescribed by the SCA
Comply with the UAE Federal Law on Securities and Commodities
Submit regular financial and compliance reports
Implement AML/CFT procedures
Investor Compensation Scheme
The UAE does not have a retail investor compensation scheme for forex and CFD trading. If an SCA-licensed broker becomes insolvent, clients rely on the insolvency process and any fund segregation arrangements.
Jurisdiction Warning
The SCA is a credible regulator within the UAE, but the UAE has multiple regulatory authorities (SCA, DFSA, FSRA) covering different zones. Make sure you know which regulator supervises the specific entity you are trading with.
Note for African Traders
SCA regulation indicates the broker has a legitimate presence in the UAE. However, African traders are typically not served by the UAE entity. If a broker mentions SCA regulation, check which of their entities your account will be registered under.
How to Verify a Broker's SCA Licence
Go to the SCA website and navigate to the Licensed Entities section. Search for the broker by name or licence number. The register shows the firm's licence type, status, and authorised activities.
Open SCA Register