UAE Revamps Oversight Bodies to Boost Economy’s Competitiveness

(Bloomberg) --

The United Arab Emirates is folding its Insurance Authority under the central bank and moving some of the stock market regulator’s powers to exchanges to help boost the economy’s competitiveness.

The Securities and Commodities Authority will see its operational and executive powers handed to local bourses, Prime Minister Sheikh Mohammed Bin Rashid Al Maktoum said on Twitter on Saturday. The SCA’s responsibilities will be limited to regulating and overseeing local financial markets.

The move “aims to raise the efficiency of the insurance sector” and increase the “competitiveness of our local financial markets,” giving them greater flexibility, the prime minister said in a tweet announcing the changes. “Our government will remain flexible, supportive and fast in making appropriate economic decisions.”

The UAE’s economy has been hit by low oil prices and the coronavirus pandemic. The International Monetary Fund expects the country’s economic output to shrink 6.6% this year, before recovering in 2021, amid a hit to crucial sectors such as trade and tourism. Job losses and weak domestic demand remain a drag on businesses in the UAE and the Gulf region.

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