Dubai’s wealth management sector has experienced a notable expansion in recent years with a 62 percent surge in authorized entities during the first half of 2024 alone, the Dubai Financial Services Authority (DFSA) recently revealed. This expansion has reinforced the Dubai International Financial Center‘s (DIFC) position as a premier hub for private banking and asset management in the region.
The DIFC now hosts 27 out of the 29 global systemically important financial institutions (G-SIBs), underscoring its critical role in the global banking network.
In H1 2024, the DFSA authorized 61 new firms, marking a 22 percent increase compared to the same period in 2023, bringing the total number of regulated entities to 837.
Capital markets in the DIFC grow
In its latest report, the DFSA noted exceptional achievements for the first half of 2024, highlighting continued growth in the number of authorized firms and its ongoing commitment to fostering a robust and resilient regulatory environment within the DIFC.
The DFSA contributed to facilitating the expansion of capital markets in the DIFC, which remains the world’s largest ESG sukuk market and the second largest listed sukuk market after Dublin, with a value of $16.6 billion and $90.9 billion, respectively.
“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,” stated Fadel Al Ali, chairman of the DFSA.
Additionally, the center hosts 199 securities on its official list with a value of $166.3 billion. This also includes 43 ESG securities worth $28.6 billion listed on Nasdaq Dubai, cementing its role as a major player in sustainable finance.
“As we move into the second half of 2024, the DFSA remains dedicated to upholding market integrity, protecting investors, and fostering financial and digital innovation in the DIFC, Dubai, and the UAE,” Al Ali noted.
Read: GCC listed banks post record $14.8 billion net profit in Q2 2024
Enhanced regulatory frameworks
In H1 2024, the DFSA issued six consultation papers on different topics, including crypto regulation, the audit regime, crowdfunding and credit funds. This initiative ensures a robust and adaptive regulatory environment that addresses emerging financial trends and challenges.
Reinforcing its commitment to protecting the reputation and integrity of the financial services industry, the DFSA took one enforcement action and issued nine public alerts to consumers and the financial community about common and more sophisticated forms of scams.
In addition, it published four key reports on firm disclosures, brokerage, private banking, and liquidity coverage ratios, providing valuable insights for the industry.
“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,” Al Ali added.
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