Financial oversight: New regulatory decision to expand the activities of the "Regional Center for Sustainable Finance and Carbon Markets" and develop its competencies
September 22, 2026
The Board of Directors of the Financial Services Institute, chaired by Dr. Islam Azzam, Chairman of the Financial Regulatory Authority, issued a decision to regulate the Regional Center for Sustainable Finance and Carbon Markets, with the aim of expanding its areas of work to keep pace with the rapid developments in sustainable finance, climate finance and carbon markets.
The decision sets a clear institutional definition of the center’s role, considering it “the technical expertise, research and training center for the Institute of Financial Services in the field of sustainable finance.” The center’s role is not limited to providing traditional training programs, but extends to capacity building, preparing studies and research, providing technical and advisory services, and producing guides, databases, indicators and professional programs, making it a specialized knowledge and technical platform in the fields of sustainable finance.
The center’s role does not detract from the regulatory, supervisory, or legislative powers assigned to the Authority or the General Administration for Sustainable Development, as the decision distinguishes between the production of knowledge and technical expertise on the one hand, and the exercise of regulatory or supervisory powers on the other. The center prepares studies, guides, programs, training, and provides consultations, but it does not replace the competent authorities in issuing rules or exercising control or supervision.
The resolution defines for the center a wide range of tasks, including preparing and implementing training programs, studies and research, technical manuals and working papers, databases, organizing conferences, capacity building, providing consulting and technical services, and preparing professional programs and performance indicators.
Its responsibilities also include supporting innovation in sustainable finance tools, preparing professional certification programs, training trainers and experts, establishing a sustainable finance observatory, a digital library and reserve and databases, as well as preparing curricula, training manuals and applied research.
The decision does not stop at the traditional concept of sustainable finance, as it includes an integrated set of tasks related to the low-carbon economy and carbon markets, such as building the capacities of carbon experts and training on the carbon market, training on emissions reporting, training on climate disclosure standards, as well as preparing training manuals for monitoring, reporting and verification, building the capacities of carbon project developers, and professional accreditation programs in the field of climate finance.
This reflects a clear development in the center’s work from dealing with sustainable finance as a field of awareness and training, to dealing with it as a specialized professional system that requires expertise in measurement, disclosure, verification, development of carbon projects, and building a base of specialists capable of dealing with new tools and concepts.
The center’s responsibilities also include training trainers and experts, professional certification programs, training carbon experts, professional accreditation programs in climate finance, and building the capacities of carbon project developers.
The decision restructures the center's institutional framework by establishing an advisory board comprised of experts in fields related to the center's activities. The institute's board of directors selects the advisory board members based on nominations from its chairperson for a three-year term, renewable once. The board's primary role is to provide opinions and advice on matters related to the center's areas of work and to propose measures deemed necessary for the effective execution of its responsibilities.
As for the Executive Director of the Center, the decision stipulates that he shall be at the level of Head of Central Administration, and he is required to have experience and competence in the areas of work of the Center. He shall manage the activity of the Center, follow up with its employees, and implement the recommendations of the Advisory Council when they are approved by the Board of Directors. He shall propose the executive plans and training and technical programs necessary to implement the policies adopted by the Authority or the Board of Directors of the Institute, and develop plans and requirements for implementing the Center’s services on an annual basis.
The Executive Director is also responsible for proposing the policies and rules necessary to attract distinguished personnel, proposing the necessary financial allocations for the center’s work, supervising the preparation of periodic reports on sustainable financing and responsible investment, as well as preparing and studying draft cooperation agreements and memoranda of understanding with training and consulting entities, preparing and supervising the implementation of programs, courses, conferences and workshops, preparing an annual report on the center’s activity, and proposing the fees for the services it provides.
Dr. Islam Azzam, Chairman of the Financial Regulatory Authority, said that the decision enables the center to provide an integrated knowledge package that begins with research and knowledge production, then prepares guides and curricula, passing through training and capacity building, reaching professional certification programs and accreditation of specialists, and developing databases and a specialized observatory, thus providing a broad information base that supports training, studies and consultations.