The Union of Arab Securities Authorities (UASA) has issued the Guidelines on Managing Risks in Arab Financial Markets as part of the implementation of the objectives and initiatives of the Union’s 2021–2025 Strategic Plan. This initiative falls within the Union’s ongoing efforts to enhance the stability and efficiency of Arab financial markets and strengthen their ability to address growing challenges and risks in an increasingly dynamic financial and economic environment.
The Guidelines were prepared by the Working Group responsible for implementing the objectives and initiatives of the first strategic pillar of the Union’s Strategic Plan, which focuses on strengthening cooperation and communication among members in the areas of capital market development, risk management, liquidity support, and sustainability. The Guidelines were developed in cooperation with the Union’s General Secretariat and is based on international best practices and practical experiences adopted by member authorities, while taking into account the regulatory and economic specificities of Arab financial markets.
The Guidelines cover a range of key topics, including the fundamental concepts of risk management, the classification of risks facing Arab financial markets, and the tools used to measure and assess such risks. It also addresses the regulatory framework and institutional governance of risk management, as well as risk mitigation and management strategies, including market, credit, liquidity, operational, compliance, and anti-money laundering risks. In addition, the Guidelines highlights the role of modern technologies—such as artificial intelligence, big data analytics, and blockchain—in supporting risk management systems and enhancing their effectiveness.
Furthermore, the Guidelines discuss key risk indicators (KRIs), key performance indicators (KPIs), and effective reporting mechanisms. It also emphasizes the importance of awareness programs and continuous training in fostering a strong risk management culture within financial institutions, thereby enhancing institutional preparedness and strengthening the ability to respond to future crises and challenges.
This Guidelines serve as a practical reference for regulatory authorities and institutions operating in Arab capital markets. It supports the development of risk management frameworks, promotes financial stability, enhances transparency and governance standards, and contributes to building more resilient, efficient, and sustainable Arab financial markets.