Dubai Financial Services Authority Approves 61 New Firms in H1 2024

Photo : Dubai Government Media Office

The Dubai Financial Services Authority (DFSA) has announced impressive achievements for the first half of 2024, highlighting significant progress and growth in the financial sector within the Dubai International Financial Centre (DIFC). The DFSA’s latest report showcases a notable expansion in the number of authorised firms and underscores its commitment to maintaining a robust and resilient regulatory framework.

In the first six months of 2024, the DFSA authorised 61 new firms, marking a substantial 22 percent increase compared to the same period in 2023. This surge brings the total number of regulated entities under the DFSA's oversight to 837. This growth is indicative of the DIFC's increasing prominence as a leading financial hub.

The wealth management sector, in particular, saw a significant 62 percent increase in authorised entities. This growth reinforces the DIFC's position as a premier destination for private banking and asset management services in the region. Furthermore, the DIFC now hosts 27 out of the 29 Global Systemically Important Banks (G-SIBs), highlighting its crucial role in the global banking network.

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The DFSA has also played a pivotal role in the development of the capital markets within the DIFC. The DIFC continues to be the world's largest market for ESG sukuk and the second-largest market for listed sukuk, following Dublin. The value of ESG sukuk in the DIFC stands at $16.6 billion, while the total value of listed sukuk reaches $90.9 billion. The DIFC’s securities market features 199 listings valued at $166.3 billion, including 43 ESG securities worth $28.6 billion listed on Nasdaq Dubai. This solidifies the DIFC's position as a key player in sustainable finance.

In its regulatory role, the DFSA has actively developed and refined its policies to align with international best practices. In the first half of 2024, the DFSA issued six consultation papers addressing various critical topics, including cryptocurrency regulation, the audit regime, crowdfunding, and credit funds. These efforts are aimed at ensuring a robust regulatory environment that adapts to emerging financial trends and challenges.

To safeguard the integrity of the financial services industry, the DFSA undertook one enforcement action and issued nine public alerts about prevalent and sophisticated scams. Additionally, the DFSA published four key reports covering firm disclosures, brokerage practices, private banking, and liquidity coverage ratios, providing valuable insights for industry participants.

The DFSA has also focused on strengthening its relationships with global regulatory counterparts and participating in international standard-setting bodies. This includes engagement with prominent organizations such as the Basel Consultative Group, the International Organisation of Securities Commissions, the International Association of Insurance Supervisors, the Islamic Financial Services Board, the Global Financial Innovation Network, the Network for Greening the Financial System, the International Forum of Independent Audit Regulators, the International Accounting Standards Board, and the Union of Arab Securities Authorities.

Fadel Al Ali, Chairman of the DFSA, commented on the authority's achievements, stating, "The impressive growth of the DFSA during H1 2024 highlights our dynamic regulatory approach and our role in enhancing the DIFC's appeal as a leading global financial hub. By engaging actively with international financial communities and standard-setters, we are advancing our domestic financial landscape and shaping the future of global finance. As we enter the second half of 2024, we remain dedicated to upholding market integrity, protecting investors, and fostering innovation in finance and digital technologies within the DIFC, Dubai, and the UAE."