The DFSA 2023 Annual Report chronicles a year of growth, innovation, and collaboration

Dubai, UAE, 10 May 2024: The Dubai Financial Services Authority (DFSA) issued today its annual report for 2023, showcasing a year of exceptional growth, innovation, and impactful contributions to Dubai’s economic landscape.

In 2023, the leading regulator marked a remarkable 25% increase in licensing from the previous year, bringing the total number of licensed firms to 791. This surge in licensing activity underscores the growing confidence in the DFSA’s regulatory framework and the attractiveness of the region for financial services firms.

Notably, there was a remarkable 50% year-on-year increase in applications across all business models, reflecting the robust growth and diversity of the financial services sector within the Dubai International Financial Centre (DIFC). The wealth management sector experienced significant growth, with increases in licencing applications from Private Banks, Asset Managers, and Fund Management companies. More than 40 domestic fund registration applications were received during the year, signalling a buoyant investment landscape within the Centre.

The DFSA also witnessed robust growth in Environmental, Social, and Governance (ESG) securities listings, recording USD 11.72 billion in total value of new ESG bonds and Sukuk listed – bringing the total outstanding ESG securities to USD 27 billion as of year-end.

Fighting financial crime remained a priority for the DFSA as demonstrated by a Memorandum of Understanding (MoU) signed with the UAE’s Financial Intelligence Unit, enhancing efforts in anti-money laundering (AML) and combating the financing of terrorism (CTF). Amendments to the DFSA’s AML, CTF and Sanctions Module aligned the DFSA’s rules with new regulations and guidelines at the UAE Federal level. Throughout 2023, the DFSA signed a total of 115 bilateral MoUs, five multilateral MoUs, and eight innovation agreements in 2023, further solidifying its international partnerships and commitment to regulatory cooperation.

In line with safeguarding and enhancing the cybersecurity landscape within the DIFC, the DFSA continued to embrace technology and digital transformation as key drivers of efficiency, transparency, and security. Their Threat Intelligence Platform (TIP) achieved a significant milestone with more than six million compromise indicators issued to users since its launch in 2020.

Fadel Al Ali, Chairman of the DFSA, said: “Looking ahead to 2024, the 20th anniversary of the DIFC, we remain committed to supporting the vision of UAE and Dubai, fostering development, and collaboration within the DIFC community. As we celebrate our 20th anniversary, we reflect on our achievements and legacy while paving the way for continued engagement and delivering regulation that upholds the integrity of the DIFC.”