DFSA 2024 Report: Key Regulatory Progress & Stronger Engagement

The Dubai Financial Services Authority (DFSA), the independent regulator overseeing the Dubai International Financial Centre (DIFC), has published its 2024 Annual Report. The document outlines significant regulatory advancements, continuous supervisory initiatives, and increased stakeholder engagement.

Advancing Transparent and Proportionate Regulation

The report reinforces the DFSA’s ongoing commitment to upholding transparent, proportionate, and effective regulation. It emphasizes the Authority’s role in enabling the growth and sophistication of DIFC’s financial services ecosystem while safeguarding its integrity.

Strong Growth in Regulated Entities and Capital Market Activity

As of the end of 2024, the DFSA regulated 902 entities, marking a 14% year-on-year growth. This rise was largely driven by a 75% surge in licences granted to the wealth management sector, including fund managers, investment banks, and private banks. New listings valued at USD 25.3 billion in capital markets brought the total outstanding listings to USD 138.5 billion under DFSA oversight.

Enforcement Actions Underscore Regulatory Rigour

To reinforce compliance and deter misconduct, the DFSA took enforcement actions against five firms and three individuals, resulting in financial penalties amounting to USD 2.5 million. These measures addressed violations such as inadequate systems and controls and breaches of core DFSA principles. Additionally, 30 consumer scam alerts were issued to protect the public and raise awareness within the financial community.

Strengthening Regulatory Framework Through Consultations and Reviews

In 2024, the DFSA maintained its commitment to transparency and international alignment by releasing 10 consultation papers and conducting eight thematic reviews. These efforts ensured that regulations stayed responsive to evolving market dynamics while aligning with global best practices.

Fadel Al Ali, Chairman of the DFSA, said: “In 2024, the DFSA marked two decades of regulatory leadership and remained steadfast in its commitment to fostering a transparent, resilient, and well-regulated financial environment. We also remained focused on being responsive to the market’s evolving needs, maintaining the high standards of regulation and ensuring that every business that chooses the DIFC and Dubai as their home has the support and resources they need to thrive in the dynamic global economy.”

Ian Johnston, Chief Executive of the DFSA, added: “As highlighted in the DFSA Annual Report 2024, much has been achieved in this year of growth, engagement, and collaboration. We have continued to reinforce our commitment to delivering transparent, accountable, and forward-looking regulation. This reflects the dedication of the DFSA’s teams and the strength of our engagement with stakeholders – locally, regionally, and internationally. Together, we have created an environment where the DIFC can continue to thrive as a global financial hub.”

Expanding Global Collaboration and Innovation Agreements

The DFSA broadened its international engagement by entering into 117 bilateral Memoranda of Understanding (MoUs), five multilateral MoUs, and eight innovation partnerships. These agreements enhanced supervisory coordination and promoted cross-border regulatory collaboration.

Embracing Digital Transformation and Talent Development

As part of its digital transformation agenda, the DFSA launched a new phase enabling Representative Office applicants to access real-time, personalised dashboards for application tracking. The Authority also prioritized talent development through leadership training, the expansion of its Graduate Programme (formerly Tomorrow’s Regulatory Leaders), and targeted initiatives aimed at cultivating UAE National talent for future regulatory roles.

A Commitment to Accountability and Strategic Vision

The DFSA’s 2024 Annual Report reflects a firm dedication to principle-based regulation, market confidence, and strategic clarity. It also includes comprehensive financial statements, reinforcing the DFSA’s adherence to transparency and public accountability.