Merger of SCA & IA – Revison of the Government Structure
His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai announced the new ministerial structure, appointment of new ministers and merging of departments. The aim for such a change was to ensure the government is quicker in its decision-making, seizing opportunities and up to date with changes.
The new structure is in line with the announcement made at the end of the UAE Government meeting which was held remotely in May, under the title “The Preparations for the Post-COVID-19 Period.” The meeting had witnessed the participation of international experts and researchers. 
What does the new government structure include?
The new structure includes:
- a closure of government services centers which will transform into digital platforms in the next two years
- mergers of the various federal authorities with other authorities or ministers
- introduction of new ministries
- appointment of new ministers of state and CEOs for specialized sectors.
The mergers in the new government structure include:
- the merger of the Ministry of Energy and the Ministry of Infrastructure to become the Ministry of Energy and Infrastructure
- the merger of the National Media Council (NMC) and the Federal Youth Authority to form the Ministry of Culture
- the merger of the General Pension and Social Security Authority and the Ministry of Community Development
- the merger of the National Qualifications Authority and the Ministry of Education.
Merger within financial services sector:
As regulatory compliance professionals, we could not but highlight the merger of the Insurance Authority (IA) with the Securities and Commodities Authority (SCA) which will be chaired by the Minister of Economy.
Prior to this, the Ministerial Resolution No. 814 of 2019 was released by the UAE Ministry of Justice last September, in accordance to which a ten-member committee was formed to lay a foundation for the merger of the IA and SCA. The members were part of SCA, IA and other bodies such as the Ministry of Finance.
This merger is aimed to help overcome the conflict of coordination and communication between the Regulators and provides a huge potential for innovation.
The UAE Government has proven itself once again to respond quickly and proactively to the current COVID challenge and has announced a solution for faster and more efficient processes across its bodies.
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