Riyadh Sees Surge in New License Registrations Through Dubai Financial Services Authority
In a stunning development, new license registrations through the Dubai Financial Services Authority have skyrocketed by a whopping 40 percent in the first months of this year compared to the same period in 2023.
The CEO of the organization, Ian Johnston, confirmed this remarkable growth to the Emirates News Agency during the 2nd edition of the Dubai Financial Technology Summit.
Johnston boldly stated that 2024 is shaping up to be the most dynamic year yet for new license issuances, building on the momentum achieved in recent years.
He went on to reveal that a plethora of new licensing activities are expected in this period, encompassing startups in the financial technology sector, major corporations, and international banks all converging toward the Dubai International Financial Centre.
DIFC, a vibrant hub in the Middle East, Africa, and South Asia region, acts as a vital connector between the area’s fast-growing markets and global economies, offering a wide array of amenities such as dining, retail, and living spaces, as highlighted on its website.
With an anticipation of over 100 applications from companies, between 130 and 140 new businesses are slated for licensing in the DIFC, showcasing the rapid pace of growth, as reported by WAM.
Johnston emphasized that the DIFC serves as the primary international financial destination in the region, playing a pivotal role in Dubai’s strategy to enhance its position as a global financial center in the Middle East.
He passionately stated: “We are not just 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 and concluding deals.”
Highlighting Nasdaq’s pivotal role in Dubai’s global bond and sukuk listing hub, Johnston noted the world’s largest sustainable sukuk market, with over 60 percent in US dollars tied to environmental, social, and governance criteria, and approximately 50 percent across all currencies linked to governance and social responsibility.
He pointed out that Nasdaq Dubai has emerged as the leading venue for listing environmental, social, and governance sukuk, showcasing the growing interest in sustainable investments and Nasdaq Dubai’s status as the preferred platform for such issuances.
Looking ahead, Johnston anticipated further growth and activity in the DIFC in the current year, owing to Dubai’s established status as a regional financial center, with over 40,000 professionals working in the center, in addition to those in finance outside the center.
The CEO confidently stated that Dubai is on track to become one of the top four to five global financial centers in the near future, affirming: “We are already working toward achieving that goal as soon as possible.”
He emphasized the Dubai Financial Services Authority’s commitment to promoting innovation by supporting the fintech sector within regulations, aligning with companies’ move towards regulatory compliance and proactive adoption of guidelines for stability and sustainable growth.
The authority had reported exceptional growth in 2023, licensing and registering a record-breaking 117 firms during the 12-month period, representing a 25 percent increase from the previous year, as announced in a press release in January.
Johnston highlighted a positive development in the realm of rules and governance, noting that financial technology operators are beginning to grasp the regulatory process, with regulators ensuring directives are in place to protect investors.
In a monumental achievement, DIFC recorded its highest gross written premiums in its 20-year history, reaching $2.6 billion in 2023, marking a remarkable 23 percent increase from the previous year.
Additionally, the center saw a 20 percent rise in the registration of insurance and reinsurance firms, including the first move of a Guernsey-based captive.