Dubai Financial Services Authority Boosts Market With 61 New Firms In First Half Of 2024

The Dubai Financial Services Authority (DFSA) has reported notable achievements for the first half of 2024. The DFSA highlighted a significant increase in authorised firms and its dedication to maintaining a strong regulatory environment within the DIFC.

In the first half of 2024, the DFSA authorised 61 new firms, reflecting a 22 percent rise compared to the same period in 2023. This brings the total number of regulated entities to 837. The wealth management sector saw a remarkable 62 percent increase in authorised entities, reinforcing DIFC's status as a leading hub for private banking and asset management in the region.

The DFSA played a key role in supporting the growth of capital markets within the DIFC. The Centre remains the world’s largest ESG sukuk market and holds the second-largest listed sukuk market after Dublin, valued at US$16.6 billion and US$90.9 billion respectively. Additionally, there are 199 securities on its official list, worth US$166.3 billion, including 43 ESG securities valued at US$28.6 billion listed on Nasdaq Dubai.

Policy Development and Stakeholder Engagement

The DFSA's proactive policy development approach has significantly improved its regulatory frameworks by adopting international best practices and engaging stakeholders actively. In H1 2024, six consultation papers were issued on various topics such as crypto regulation, audit regime, crowdfunding, and credit funds. This initiative ensures an adaptive regulatory environment addressing emerging financial trends.

To foster dialogue and engagement, the DFSA conducted numerous outreach sessions and roundtables with key stakeholders throughout H1 2024. They also participated in over 20 high-profile local and international public speaking events focusing on supervisory practices, regulation, financial crime, and sustainability.

Enforcement Actions and Public Alerts

The DFSA reinforced its commitment to protecting the financial services industry's reputation by taking one enforcement action and issuing nine public alerts about common scams. Additionally, four key reports were published on firm disclosures, brokerage, private banking, and liquidity coverage ratios.

Global Alliances and International Engagement

The DFSA has been strengthening relationships with regulatory counterparts globally while actively participating in international standard-setting bodies. Notable engagements include organisations like the Basel Consultative Group, IOSCO, IAIS, IFSB, GFIN, NGFS, IFIAR, IASB, and UASA.

Fadel Al Ali, Chairman of the DFSA stated: "The impressive growth of the DFSA during H1 2024 is a testament to our dynamic regulatory approach and our leading role in enhancing the appeal of the DIFC and of Dubai as a key global financial hub. By actively engaging with global financial communities and contributing to discussions with international standard-setters, we are not only enhancing our domestic financial landscape but also playing a crucial role in shaping the future of global finance."

As we progress into H2 2024, the DFSA remains committed to upholding market integrity while fostering financial innovation within DIFC and beyond.

With inputs from WAM