With a record AED 25 billion in assets under management and heightened enforcement actions, the DFSA solidifies its role as a global financial regulator.
The Dubai Financial Services Authority (DFSA) has released its 2024 Annual Report, highlighting a year of significant growth, robust regulatory oversight, and a clear vision for the future of the Dubai International Financial Centre (DIFC). As the DIFC continues to attract global financial institutions, the DFSA's evolving role in regulation and enforcement has never been more critical.
Key Highlights at a Glance
Broadening the Financial Services Sector
- 154 new regulated entities joined the DIFC, bringing the total to 902.
- 136 firms were authorised, and 17 Designated Non-Financial Businesses or Professions regi stered.
- DIFC now hosts 27 of the world’s 29 systemically important banks.
- 946 individuals were authorised, with 57 licence variations granted.
Upholding Market Integrity
- 118 risk assessments were conducted on authorised firms and 16 on registered auditors.
- 8 thematic reviews and risk assessment reports were published, reflecting the DFSA’s ongoing commitment to robust supervision.
Strengthening Capital Markets
- The total value of debenture listings reached $138.5 billion, with $25.3 billion in new listings.
- Sukuk listings stood at $95.4 billion, cementing DIFC’s status as a top global jurisdiction.
- 26 bodies and 45 members received recognition for their roles in the capital markets.
Fostering Global Regulatory Cooperation
- DIFC engaged with 33 local and international delegations and entered into 2 new bilateral memoranda of understanding.
- The DFSA managed 85 outgoing and 90 incoming regulatory requests, underscoring its active participation in global regulatory networks.
DIFC’s 2024 achievements reflect a dynamic, well-regulated, and internationally connected financial ecosystem, poised for continued growth and innovation.
Focus Areas in 2024
- Artificial Intelligence (AI) and Innovation:
The DFSA launched a thematic review on AI use in financial services, underscoring the importance of ethical and transparent adoption of emerging technologies. - Combatting Financial Crime:
Enhanced supervision led to deeper scrutiny of AML/CFT frameworks. Over 80 risk assessments were conducted, and a new cross-border task force was established. - Sustainable Finance:
In line with the UAE’s Net Zero goals, the DFSA made strides in supporting ESG-aligned finance. Several sustainability-linked products were approved during the year. - Cyber Risk and Resilience:
The DFSA ran industry-wide cyber stress tests and increased requirements for incident reporting, reflecting a shift toward more resilient digital infrastructures.
Enforcement in Action
2024 saw a firm regulatory hand with four key enforcement actions, ranging from misleading disclosures to AML failings. Notably, one case resulted in a record USD 3.02 million penalty, sending a strong message on accountability and investor protection.
Looking Ahead: 2025 and Beyond
The DFSA outlined its 2025 strategic priorities, which include:
- Strengthening regulatory technology (RegTech) adoption.
- Increasing global cooperation with other regulators.
- Further embedding sustainability and governance into the licensing process.
With the DIFC forecasted to grow significantly in the next three years, the DFSA is expected to tighten its supervisory grip while facilitating innovation.
Why This Matters for DIFC Firms
As a firm operating within or serving clients in DIFC, keeping pace with the DFSA’s priorities, especially around AI, ESG, and compliance, will be essential for continued success. Regulatory expectations are rising, and firms need to stay audit-ready and governance-strong.
At VelthRad Consultants, we support firms in navigating the DFSA framework; from licensing and internal audit preparation to cybersecurity reviews and compliance outsourcing.
Ready for 2025?
Let Us help you stay ahead of the regulatory curve.
Download the full DFSA 2024 Annual Report here.
