An analysis of the potential lessons that can be learned from UK and US financial services regulation in the context of the UAE

This research embarks on a comparative analysis of regulatory landscapes in the financial sectors of the United Kingdom (UK), the United States (US), and within the context of the United Arab Emirates (UAE). The investigation was driven by the aftermath of the Global Financial Crisis (GFC) which exposed significant vulnerabilities within existing financial regulatory frameworks. The study examines a series of regulatory reforms and measures instituted by financial regulators and agencies across these jurisdictions, encompassing capital adequacy requirements, securitisation regulations, corporate governance practices, and the processes for risk management, approval, licencing, and supervision. And the adoption of the Islamic Finance as an alternative option in reforming the financial system. A pivotal finding of this analysis is the acknowledgment of resilient measures and regulatory reforms introduced post-GFC in the UK and the US, aimed at fortifying the financial system's stability. Despite these strides towards robust regulatory frameworks, instances of institutional failures within the US question the comprehensive effectiveness of these reforms. Moreover, the exploration into the UAE's adaptation of Islamic finance rules unveils that despite its ethical and risk-sharing underpinnings, Islamic finance is not devoid of financial distress, challenging its immunity to the factors that precipitated the GFC. The research draws upon an extensive thematic analysis, leveraging NVivo software to dissect the complex perceptions of financial system participants towards these regulatory adaptations. Key themes emerge, illustrating the critical role of corporate governance in Islamic Financial Institutions (IFIs), the varied interpretations of the causes of financial crises among financial system participants in the UK, the US, and the UAE, and the integration challenges and opportunities of Islamic finance within international standards, notably Basel III. Significantly, the research underscores a shared recognition among regulatory bodies in the UK, US, and UAE of the necessity for more proactive and stringent regulatory measures to avert future financial crises. This entails a revaluation of governance structures, the introduction of tailored regulatory standards for Islamic finance, the promotion of innovative and authentic financial products, and enhanced transparency and education in Islamic finance practices. In conclusion, this study advocates for a holistic and adaptable regulatory approach that not only addresses the lacunas revealed by the GFC but also embraces the unique attributes of Islamic finance to potentially offer a more stable and ethical alternative financial system. The recommendations propose further integration of Basel III Accords, refinement of corporate governance, and elevation of risk management and disclosure standards as pivotal to ensuring the robustness and resilience of the financial system against evolving risks and challenges.

Citation

Jamal-Eldeen, N. (2025) An analysis of the potential lessons that can be learned from UK and US financial services regulation in the context of the UAE. University of Wolverhampton. https://wlv.openrepository.com/handle/2436/626191

Publisher

University of Wolverhampton

URI

https://wlv.openrepository.com/handle/2436/626191

Type

Thesis or dissertation

Language

en

Description

A thesis submitted in partial fulfilment of the requirements of the University of Wolverhampton for the degree of Doctor of Philosophy.

Collections

Theses and Dissertations