The Dubai Financial Services Authority (DFSA) achieved exceptional growth last year, with a 25 percent jump in licensing and registering of companies during 2023.
This has taken the total number of licensed companies with DFSA to 791.
“2023 was the DFSA’s busiest year in terms of the number of new licenses issued, with more than 100 new financial services firms, surpassing 2022,” Ian Johnston, Chief Executive, DFSA, told WAM.
“We have 27 out of 29 systemically important global banks headquartered in the DIFC, as well as most of the major fund managers and the majority of insurance and reinsurance companies,” Johnston said.
The DFSA CEO pointed to a significant increase in the interest of hedge funds to be present in Dubai amid rapid growth in the sector, noting that many hedge funds and other funds around the world are moving to the DIFC.
During the past year, the DFSA recorded a 125 percent year-on-year increase in the number of asset managers and hedge funds established in the DIFC.
Johnston also highlighted the DIFC’s impressive growth as a leading financial hub, pointing out that the authority has surpassed its regional competitors to become the largest financial centre in the Middle East and a prominent global player.
Currently, over 600 financial services firms operate within the DIFC, employing more than 40,000 people and significantly contributing to the UAE’s economy, he added.
On Nasdaq Dubai, the DIFC’s stock exchange, Johnston said it has emerged as the world’s leading market for environmental, social and corporate governance (ESG) for Sukuk.
The percentage of ESG-related Sukuk denominated in US dollars listed on Nasdaq Dubai reached more than 60 percent, and nearly 40 percent of ESG-related Sukuks in other currencies. The volume of Sukuk issues reached $27 billion, he said.
Beyond traditional finance, Johnston also pointed to the DFSA’s interest in exploring new technologies within the financial sector.
“Dubai is actively positioning itself as a major hub for digital assets, and this strategic focus is expected to attract further investment and innovation to the DIFC,” he said.
Johnston also highlighted the close cooperation between the DFSA and regulatory authorities in China and Hong Kong, reflecting the strong ties between the UAE and these countries in the financial sector.
He mentioned that the DFSA works closely with the Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission of Hong Kong, and that they jointly organise some activities.
Johnston also announced that the DFSA, in collaboration with the HKMA, will host a joint conference on climate finance in Hong Kong this year and in Dubai next year.
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