The UAE Securities and Commodities Authority’s approval of regulation for robo-advisory services this week will help establish a secure digital investment environment in the country, experts have said.
Licensed portfolio management firms such as large banks and financial firms are now authorised to provide robo-advisory services through digital platforms that utilise artificial intelligence and advanced algorithms to deliver automated investment recommendations. However, robo-advisory services will remain subject to client agreements, the SCA announced.
Robo-advisers are digital investment platforms that calculate an investor’s risk tolerance based on a series of questions. Using automated algorithms, they then assign investors a tailored investment portfolio of exchange-traded funds (ETFs) or index funds. Typically, they charge lower fees compared with traditional financial advisers and wealth managers.
“The specialty of this regulation is that robo-advisory services are now legally regulated on a nationwide level by the SCA,” said Vijay Valecha, chief investment officer of Century Financial. “Platforms that already offer robo-advisory services in the UAE are currently only regulated by DIFC or FSRA (ADGM) laws, which are financial free zones,” he added, referring to Dubai International Financial Centre and Abu Dhabi's Financial Services Regulatory Authority.
“Therefore, the laws in these free zones are different from the country’s laws. For example, Sarwa is regulated by FSRA in Abu Dhabi, while StashAway is regulated by DIFC.”
Having robo-advisory services regulated on a federal level, nationwide, would provide further protection and transparency to retail investors, as these platforms will be scrutinised on a deeper level, Mr Valecha said. It will also help to increase the attractiveness and competitiveness of the UAE financial markets across the world, he added.
Assets under management in the global robo-advisory market are projected to reach $2.06 trillion in 2025, according to Statista, while the number of users is expected to reach 34 million by 2029.
Retail investors are increasingly seeking direct access to markets with the help of technology, leading to a surge in popularity for zero-commission trading apps such as Robinhood, eToro and Interactive Brokers, as well as robo-advisers in the UAE including Sarwa, StashAway and Baraka.
Robo-advisers in the UAE will now operate under strict governance guidelines, such as independent IT audits, strong cybersecurity systems, regular investment algorithm reviews, and transparent disclosure of fees and risks to ensure investor protection, the SCA announced.
The new SCA licence allows robo-advisers to directly serve customers in mainland UAE and is a “positive step” towards expanding digital investing in the UAE, said Raaed Sheibani, country manager – UAE at digital wealth manager StashAway.
“As regulatory support grows, more people will have access to the tools they need to build long-term wealth – that’s a win for everyone. We also welcome a more cohesive framework across regulators, ensuring that clients can access services from digital players licensed by different UAE regulators with confidence,” Mr Sheibani added.
Robo-advisers offer benefits like low cost and accessibility, but they also have “notable drawbacks”, warned Rupert Connor, partner at Abacus Financial Consultants.
They typically offer a standardised set of investment options, primarily ETFs and index funds, which may not always align with an individual’s preferences or financial planning goals, he said.
They may not also be suitable for investors with complex financial situations, such as estate planning and tax optimisation, or significant life events like inheritance or business exits, or those seeking personalised investment strategies, he cited.
Robo-advisers can often be problematic during market volatility or periods of emotional stress, as algorithms may not be able to provide the same level of reassurance and guidance as a human adviser, Mr Connor explained.
“For someone who is just beginning their financial planning journey by saving a modest amount on a monthly basis or a lump sum investment, a robo-adviser is their friend,” he added. "Once a portfolio reaches a certain level, then perhaps the guidance of an adviser is prudent as a robot will never be able to truly manage one’s wealth."
Agreeing with this, Jay Adrian Tolentino, a UAE-based financial coach, said the recommendations of robo-advisers is based only on the data you enter, such as age, risk appetite and investment horizon, so it “may miss important personal context”.
The investment decisions are driven by fixed algorithms, which may not respond well to unusual market conditions. While fees are usually lower than human advisers, there may still be limitations in terms of flexibility, customisation, or support when markets are volatile, Mr Tolentino warned.
Robo-advisers also offer limited flexibility. Investors who want to focus on specific sectors, regions, or asset classes may find robo-advisers too rigid, as their portfolios are typically based on preset models, Mr Valecha highlighted.
“Relying too much on automation comes with its own risks. Though rare, technical issues like system outages, software glitches, or problems connecting with custodian platforms can disrupt how investments are executed,” he warned.
Suggested picnic spots
Abu Dhabi
Umm Al Emarat Park
Yas Gateway Park
Delma Park
Al Bateen beach
Saadiyaat beach
The Corniche
Zayed Sports City
Dubai
Kite Beach
Zabeel Park
Al Nahda Pond Park
Mushrif Park
Safa Park
Al Mamzar Beach Park
Al Qudrah Lakes
Water waste
In the UAE’s arid climate, small shrubs, bushes and flower beds usually require about six litres of water per square metre, daily. That increases to 12 litres per square metre a day for small trees, and 300 litres for palm trees.
Horticulturists suggest the best time for watering is before 8am or after 6pm, when water won't be dried up by the sun.
A global report published by the Water Resources Institute in August, ranked the UAE 10th out of 164 nations where water supplies are most stretched.
The Emirates is the world’s third largest per capita water consumer after the US and Canada.
Conflict, drought, famine
Estimates of the number of deaths caused by the famine range from 400,000 to 1 million, according to a document prepared for the UK House of Lords in 2024.
It has been claimed that the policies of the Ethiopian government, which took control after deposing Emperor Haile Selassie in a military-led revolution in 1974, contributed to the scale of the famine.
Dr Miriam Bradley, senior lecturer in humanitarian studies at the University of Manchester, has argued that, by the early 1980s, “several government policies combined to cause, rather than prevent, a famine which lasted from 1983 to 1985. Mengistu’s government imposed Stalinist-model agricultural policies involving forced collectivisation and villagisation [relocation of communities into planned villages].
The West became aware of the catastrophe through a series of BBC News reports by journalist Michael Buerk in October 1984 describing a “biblical famine” and containing graphic images of thousands of people, including children, facing starvation.
Band Aid
Bob Geldof, singer with the Irish rock group The Boomtown Rats, formed Band Aid in response to the horrific images shown in the news broadcasts.
With Midge Ure of the band Ultravox, he wrote the hit charity single Do They Know it’s Christmas in December 1984, featuring a string of high-profile musicians.
Following the single’s success, the idea to stage a rock concert evolved.
Live Aid was a series of simultaneous concerts that took place at Wembley Stadium in London, John F Kennedy Stadium in Philadelphia, the US, and at various other venues across the world.
The combined event was broadcast to an estimated worldwide audience of 1.5 billion.
UK-EU trade at a glance
EU fishing vessels guaranteed access to UK waters for 12 years
Co-operation on security initiatives and procurement of defence products
Youth experience scheme to work, study or volunteer in UK and EU countries
Smoother border management with use of e-gates
Cutting red tape on import and export of food
THE BIO
Favourite author - Paulo Coelho
Favourite holiday destination - Cuba
New York Times or Jordan Times? NYT is a school and JT was my practice field
Role model - My Grandfather
Dream interviewee - Che Guevara
Tips to stay safe during hot weather
- Stay hydrated: Drink plenty of fluids, especially water. Avoid alcohol and caffeine, which can increase dehydration.
- Seek cool environments: Use air conditioning, fans, or visit community spaces with climate control.
- Limit outdoor activities: Avoid strenuous activity during peak heat. If outside, seek shade and wear a wide-brimmed hat.
- Dress appropriately: Wear lightweight, loose and light-coloured clothing to facilitate heat loss.
- Check on vulnerable people: Regularly check in on elderly neighbours, young children and those with health conditions.
- Home adaptations: Use blinds or curtains to block sunlight, avoid using ovens or stoves, and ventilate living spaces during cooler hours.
- Recognise heat illness: Learn the signs of heat exhaustion and heat stroke (dizziness, confusion, rapid pulse, nausea), and seek medical attention if symptoms occur.
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Banned items
Dubai Police has also issued a list of banned items at the ground on Sunday. These include:
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Political flags or banners
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Bikes, skateboards or scooters
Mohammed bin Zayed Majlis
LILO & STITCH
Starring: Sydney Elizebeth Agudong, Maia Kealoha, Chris Sanders
Director: Dean Fleischer Camp
Rating: 4.5/5
Keep it fun and engaging
Stuart Ritchie, director of wealth advice at AES International, says children cannot learn something overnight, so it helps to have a fun routine that keeps them engaged and interested.
“I explain to my daughter that the money I draw from an ATM or the money on my bank card doesn’t just magically appear – it’s money I have earned from my job. I show her how this works by giving her little chores around the house so she can earn pocket money,” says Mr Ritchie.
His daughter is allowed to spend half of her pocket money, while the other half goes into a bank account. When this money hits a certain milestone, Mr Ritchie rewards his daughter with a small lump sum.
He also recommends books that teach the importance of money management for children, such as The Squirrel Manifesto by Ric Edelman and Jean Edelman.
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Mohammed bin Zayed Majlis
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Brief scores:
Everton 0
Leicester City 1
Vardy 58'
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