Dubai Financial Services Authority approves 61 new firms in H1

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The Dubai Financial Services Authority (DFSA) authorised 61 new firms in H1 2024, marking a 22 per cent increase compared to the same period in 2023, bringing the total number of regulated entities to 837.

In 2023, DFSA licensed a record 117 firms, a 25 per cent increase compared to the previous year.

The robust growth highlights the Dubai International Financial Centre (DIFC)’s continued appeal as a premier financial hub.

Fadel Al Ali, chairman of the DFSA, commented, “The impressive growth during H1 2024 reflects our dynamic regulatory approach and our leadership in enhancing the DIFC’s and Dubai’s status as key global financial hubs.

“Our active engagement with international financial communities and contribution to global discussions on financial standards highlight our dedication to fostering a robust and transparent financial landscape.”

DFSA H1 2024 milestones

The wealth management sector was a significant contributor, with a 62 per cent surge in authorised entities.

DIFC now hosts 27 out of the 29 global systemically important banks (G-SIBs), marking its pivotal role in the global banking network.

The authority’s efforts have also bolstered the growth of the capital markets within the DIFC, which remains the world’s largest market for ESG sukuk and the second-largest listed sukuk market globally, trailing only Dublin.

The market’s value reached $16.6bn for ESG sukuk and $ 90.9bn for listed sukuk.

The DIFC’s official list now includes 199 securities, valued at $166.3bn, with 43 ESG securities worth $28.6bn listed on Nasdaq Dubai.

Key initiatives

In H1 2024, the authority demonstrated a proactive approach to regulatory development, issuing six consultation papers on topics such as crypto regulation, audit regimes, crowdfunding, and credit funds.

This initiative aims to ensure that the DFSA’s regulatory framework remains robust and adaptable to emerging financial trends and challenges. The DFSA also reinforced its commitment to safeguarding the integrity of the financial services industry, taking one enforcement action and issuing nine public alerts to protect consumers and the financial community from scams.

Additionally, the DFSA published four key reports offering valuable insights into firm disclosures, brokerage, private banking, and liquidity coverage ratios.

The authority’s outreach efforts included numerous sessions and roundtables with key stakeholders and participation in over 20 high-profile public speaking events, both locally and internationally, focusing on supervisory practices, regulation, financial crime, and sustainability.

On the global stage, DFSA has been strengthening alliances with regulatory counterparts and playing an active role in international standard-setting bodies.

Engagement with organisations such as the Basel Consultative Group, the International Organisation of Securities Commissions, and the Network for Greening the Financial System underscores the DFSA’s commitment to shaping the future of global finance.