Dubai’s Wealth Management Sector Sees 62% Growth in Authorized Entities in H1 2024
Dubai’s Wealth Management Sector Sees 62% Growth in Authorized Entities in H1 2024
Dubai's wealth management sector has seen a dramatic 62% increase in authorized entities in the first half of 2024, according to the Dubai Financial Services Authority (DFSA). This surge cements the Dubai International Financial Center (DIFC) as a leading global hub for private banking and asset management.
Currently, the DIFC hosts 27 out of the 29 global systemically important financial institutions (G-SIBs), emphasizing its crucial role in the global banking system.
DIFC Capital Markets: A Continued Success
In the first half of 2024, the DFSA approved 61 new firms, a 22% increase from the previous year, bringing the total number of regulated entities to 837. This growth underlines the DIFC's expanding influence in the financial world.
The DIFC remains the largest ESG sukuk market globally and the second-largest listed sukuk market after Dublin, with values of $16.6 billion and $90.9 billion, respectively.
“The remarkable growth in the first half of 2024 reflects our dynamic approach and solidifies Dubai’s position as a major financial center,” said Fadel Al Ali, chairman of the DFSA.
The DIFC also lists 199 securities valued at $166.3 billion, including 43 ESG securities worth $28.6 billion on Nasdaq Dubai, highlighting its role in sustainable finance.
Evolving Regulatory Frameworks
In H1 2024, the DFSA released six consultation papers on important topics like crypto regulations, audit practices, crowdfunding, and credit funds. These initiatives ensure that the regulatory environment stays current with emerging financial trends.
The DFSA took one enforcement action and issued nine public warnings about scams, demonstrating its commitment to maintaining the integrity of the financial services industry. Additionally, it published four key reports on firm disclosures, brokerage practices, private banking, and liquidity coverage, offering valuable insights for the industry.
“Our engagement with global financial communities and international standard-setters not only enhances our local financial landscape but also helps shape the future of global finance,” Al Ali concluded.
