The Securities and Commodities Authority (SCA) of the UAE has formally introduced regulations allowing licensed portfolio management firms to offer robo-advisory services, marking a significant step in the region’s financial technology evolution.
These services—powered by AI-driven algorithms—aim to guide investors through automated, cost-efficient investment advice, especially in areas such as stocks, commodities, and digital assets.
Only trading platforms holding proper licenses will be permitted to operate robo-advisory services under the new rule, which comes amid increasing retail investor participation in platforms linked to both local and global markets.
“Licensed firms can now deliver personalized, algorithm-based investment recommendations,” said SCA CEO Waleed Saeed Al Awadhi. “This move aligns with our vision to create a dynamic and secure investment environment that embraces digital innovation.”
The decision is seen as a continuation of the regulator's push to formalize and expand access to digital investment tools—coming shortly after new licensing guidelines were announced for social media financial influencers, or “finfluencers.”
Robo-advisory platforms are already credited globally with attracting new generations of investors, particularly for their ease of access and lower fees compared to traditional financial advisors.
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