Dubai Financial Services Authority registered 117 firms in 2023, reflecting 25% growth

Dubai Financial Services Authority (DFSA) said it had an “exceptional growth” year in 2023.

The regulator licenced and registered a record-breaking 117 firms during the 12 months. This reflected an increase of 25 per cent from the previous year.

Growth in licensing was witnessed in various segments of the financial services sector.

The DFSA noted a remarkable increase in asset and hedge fund managers establishing a presence in the DIFC, with the latter registering 125 per cent year-on-year growth.

Fadel Al Ali, chairman of the DFSA, said: “The remarkable achievements of 2023 are a testament to our dedication to not only regulate the present but to also shape and govern the future. We aim to become a global benchmark as an international regulatory body, delivering excellence in tandem with the government’s strategic vision – including Dubai Economic Agenda D33.”

DFSA enjoyed a year of strong growth

As well as growth in licenced firms, it made significant strides in strengthening ties with local and international regulatory bodies and partners.

It signed a memorandum of understanding with the UAE’s Financial Intelligence Unit to collaborate on anti-money laundering and combating the financing of terrorism.

DFSA also formed a partnership with the Hong Kong Monetary Authority aimed at exploring how to further develop policy and regulatory responses to support and enable climate finance in the Middle East and Asia.

The flagship initiative of this partnership is the upcoming Joint Climate Finance Conference, set to take place in Hong Kong this autumn.

Underscoring its commitment to accelerating the development of sustainable capital markets in the DIFC, the DFSA announced, during COP28’s Finance Day, a regulatory fee waiver for issuers wishing to list sustainability-related debt securities in the DIFC throughout 2024.

“As we set our sights higher for 2024, we aim to stand firm on our four strategic pillars – Delivery, Engagement, Innovation, and Sustainability. These pillars are the foundation of our pursuit to not merely meet standards but to set them, ensuring stability, innovation, and progress in the financial landscape,” Al Ali said.

Furthermore, as of November 2023, Nasdaq Dubai, the DIFC’s exchange, holds the world’s largest listed ESG sukuk market valued at $27bn, including more than 60 per cent of US-denominated ESG sukuk.

Nasdaq Dubai is the world’s second-largest venue for the listed sukuk market.