The Dubai Financial Services Authority (DFSA) has released an update on its performance for the first half (H1) of 2024, showing notable progress and improvements in its regulatory activities. These achievements reflect the DFSA’s dedication to maintaining a strong regulatory environment within the Dubai International Financial Centre (DIFC). This success also highlights Dubai’s growing importance as a global financial hub, with the DFSA playing a key role in ensuring market integrity and supporting innovation.
Strong Growth in New Firms
Between January and June 2024, the DFSA approved 61 new firms to operate within the DIFC. This is a 22% increase compared to the same period in 2023. The rise in the number of firms brings the total number of regulated entities under DFSA’s supervision to 837. This expansion is a positive sign that more companies are choosing the DIFC as their base of operations, showing confidence in the regulatory framework provided by the DFSA.
One of the standout areas of growth was in the wealth management sector. The DFSA reported a 62% surge in the number of authorized entities in this sector during the first half of the year. This growth further strengthens DIFC’s reputation as a leading global hub for private banking and asset management. The increase in firms operating in this sector shows that more companies and investors see the DIFC as a trusted and attractive place for managing wealth and investments.
DIFC’s Global Importance

DIFC has become a significant player on the global financial stage, and its importance continues to grow. Currently, 27 of the world’s 29 globally significant banks (G-SIBs) operate within the DIFC. These banks are recognized as crucial players in the international financial system, and their presence in Dubai highlights the city’s role in global finance. The fact that nearly all the world’s most important banks are operating within DIFC shows that Dubai is now seen as a key location for global banking and finance activities.
Growth in Capital Markets
The DFSA has also played an important role in the growth of capital markets within the DIFC. One key area of success is the market for Environmental, Social, and Governance (ESG) sukuk. ESG sukuk are financial products that meet the standards of Islamic finance while also focusing on sustainable and socially responsible investments. DIFC is currently the largest ESG sukuk market in the world, which shows the growing importance of ethical and sustainable finance.
In addition, the DIFC is the second-largest market for all types of sukuk, with assets valued at an impressive US$90.9 billion. This market includes both Islamic bonds and traditional securities, showing that the DIFC is a hub for both conventional and Islamic finance. The total value of all the securities listed in the DIFC has reached US$166.3 billion, a significant figure that demonstrates the growth and importance of the market.
Nasdaq Dubai, one of the leading exchanges in the region, hosts 199 different types of securities, including 43 ESG securities. These ESG securities alone are valued at US$28.6 billion, reflecting the strong demand for investments that take into account ethical and environmental considerations.
Regulatory Developments and Policy Enhancements
In the first half of 2024, the DFSA took significant steps to further develop its regulatory framework. This was achieved through the release of six consultation papers on key topics like crypto regulation and crowdfunding. Consultation papers are a way for the DFSA to gather feedback from industry experts and stakeholders on proposed changes to its rules. By focusing on critical areas such as crypto regulation, the DFSA is ensuring that it stays ahead of emerging trends and risks in the financial world.
Crypto regulation, in particular, is a topic of growing interest globally. As more investors and companies look to engage with digital assets, it becomes crucial to have clear rules in place to protect market participants and ensure the stability of the financial system. The DFSA’s focus on this area demonstrates its commitment to staying relevant in a rapidly changing financial landscape.
In addition to developing new policies, the DFSA has been actively involved in enforcement activities. During the first half of 2024, the DFSA took enforcement actions against firms that violated its regulations. This includes issuing public alerts to warn people about scams and other fraudulent activities. By taking a proactive approach to enforcement, the DFSA is helping to protect consumers and maintain trust in the financial system.
Furthermore, the DFSA published several key reports during this period, offering valuable insights into the state of the market and the effectiveness of its regulations. These reports provide stakeholders with important information on how the DFSA is working to keep the DIFC a safe and well-regulated environment for businesses and investors.
Commitment to Market Integrity
The Chairman of the DFSA, Fadel Al Ali, expressed pride in the agency’s accomplishments during the first half of 2024. He emphasized that the growth seen during this period reflects the DFSA’s dynamic and proactive regulatory approach. By staying flexible and open to innovation, the DFSA has been able to support the growth of the DIFC while ensuring that market integrity is maintained.
Al Ali noted that the DFSA’s efforts are not just about regulating the market but also about supporting Dubai’s status as a global financial hub. As Dubai continues to attract international companies and investors, the DFSA will play a key role in ensuring that the market remains stable, secure, and innovative.
Outlook for the Second Half of 2024
As the DFSA moves into the second half of 2024, it remains focused on continuing its work to strengthen the regulatory environment within the DIFC. The achievements of the first half of the year provide a solid foundation for further growth and development. With plans to keep refining its policies and taking proactive enforcement actions, the DFSA aims to support the continued expansion of the financial sector in Dubai.
One of the key areas to watch will be the development of crypto regulations. As more firms and investors show interest in digital assets, it is likely that the DFSA will take further steps to ensure that its regulations are up to date and effective in managing the risks associated with these new technologies.
Overall, the DFSA’s achievements in the first half of 2024 demonstrate its strong commitment to promoting a safe, well-regulated, and innovative financial environment. With its forward-looking approach, the DFSA is well-positioned to support Dubai’s continued growth as a leading global financial hub.
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