Arab News, Wed, May 08, 2024 | Shawwal 29, 1445
Dubai Financial Services Authority sees 40% surge in new license registrations, CEO reveals
Emirates:
New license registrations through the Dubai Financial Services Authority
increased by 40 percent in the first months of this year compared to the same
period in 2023.
The organization’s CEO, Ian Johnston, confirmed
the issuance growth to the Emirates News Agency on the sidelines of the 2nd
edition of the Dubai Financial Technology Summit.
Johnston stated that 2024 is poised to be the most
dynamic year yet for new license issuances, building on the momentum achieved in
the past two years.
He added that this period will witness an
abundance of new licensing activities, encompassing startups in the financial
technology sector, as well as major corporations and international banks
continuing to converge toward the Dubai International Financial Centre.
DIFC, a hub in the Middle East, Africa, and South
Asia region, connects the area’s fast-growing markets with global economies and
offers dining, retail, and living amenities, according to its website.
The CEO anticipated receiving over 100
applications from companies, with between 130 and 140 new businesses slated for
licensing in the DIFC, reflecting the pace of growth, according to WAM.
He emphasized that the base serves as the primary
international financial destination in the region, contributing to Dubai’s
strategy to enhance its position as a global financial center in the Middle
East.
He stated: “We are not only witnessing an increase
in the number of companies we license, but also witnessing the success of these
companies in the DIFC, facilitating individuals in conducting their business, as
well as facilitating the conclusion of deals.”
Johnston emphasized Nasdaq’s role in Dubai’s
global bond and sukuk listing hub, noting it as the world’s largest sustainable
sukuk market, with over 60 percent in US dollars tied to environmental, social,
and governance criteria, and around 50 percent across all currencies linked to
governance and social responsibility.
He noted that Nasdaq Dubai has become the leading
venue for listing environmental, social, and governance sukuk, demonstrating the
increasing interest in sustainable investments and Nasdaq Dubai’s position as a
preferred platform for such issuances.
Johnston anticipated that the DIFC would continue
to experience further growth and activity in the current year, owing to Dubai’s
established status as a regional financial center, highlighting that the center
accommodates over 40,000 professionals, in addition to those working in finance
outside the center.
The CEO indicated that Dubai is poised to emerge
as one of the top four to five global financial centers in the coming years,
stating: “We are already working toward achieving that as soon as possible.”
He stressed the Dubai Financial Services
Authority’s goal to promote innovation by backing the fintech sector within
regulations. This aligns with companies’ move toward regulatory compliance and
proactive adoption of guidelines for stability and sustainable growth.
The authority had announced earlier in January
that it had an exceptional growth year in 2023, saying in a press release: “The
region’s leading regulator licensed and registered a record-breaking 117 firms
during the 12-month period, an increase of 25 percent from the previous year.”
Johnston explained that regarding rules and
governance, one of the positive developments occurring now is that financial
technology operators are beginning to understand the regulatory process, and the
task as regulators is to ensure that they impose directives to protect
investors.
DIFC had recorded its highest gross written
premiums in its 20-year history, amounting to $2.6 billion in 2023, marking a 23
percent increase from the previous year.
The center also recorded a 20 percent rise in the
registration of insurance and reinsurance firms, including the first move of a
Guernsey-based captive.