As Dubai and the UAE continue to develop, the DFSA has released its Business Plan for 2023–24. The plan is organized around four strategic themes. These themes are designed to encourage business expansion in Dubai. The DFSA has put out a two-year plan to help the Dubai International Financial Centre (DIFC) meet its statutory objectives, such as establishing and keeping the DIFC’s reputation as a top global financial center.
The Dubai Financial Services Authority and Its Long-Term Prospects
The Dubai Financial Services Authority 2023-2024 Business Plan expands upon its dedication to international standards, high-quality regulation, and best practices. All of this is in order to facilitate the growth of the DIFC and the economies of Dubai and the UAE. Fadel Al Ali, Chairman of the DFSA, went on to say that as the DFSA approaches its 20th anniversary, the country’s leaders have shown that they have a clear vision for the country’s prosperity in the future. He added that this vision and purpose had guided their role and understanding of the part they play. Several initiatives spanning multiple themes will be pursued by the DFSA as part of the Business Plan.
To preserve the standing of the DIFC financial services sector, the DFSA will improve its policy framework by adopting international standards, giving more support to trading venues and markets, and tightening its rules for protecting client assets.
The DFSA continues to support the federal authorities in implementing the recommendations resulting from the Financial Action Task Force Mutual Evaluation of the UAE in 2020 while combating financial crime remains a top priority. It will maintain an active relationship with the regulated community and its peer regulators locally, regionally, and globally. Also, the DFSA will collaborate with DIFC firms to enhance engagement and understanding of ESG issues. It will help strengthen the global response needed to achieve the vision of the Paris Climate Agreement by working at the national level to deliver approaches to corporate governance, disclosure, and taxonomy.
The DFSA will encourage the development and adoption of new technologies by the DIFC’s regulated community and boost the use of existing technologies to meet regulatory requirements and challenges. The DFSA’s long-term goal is to be a globally-respected regulator, guiding the expansion of the financial services industry through rigorous but fair oversight. To that end, it will keep updating the DIFC’s broader regulatory regime to reflect the latest market developments (including risks and innovations).
Both the DIFC and the DFSA are developing as financial centers and regulators, respectively, and both are increasingly dependent on international norms. Because of the Centre’s growth, they have to keep up their efforts to encourage innovation in the DIFC financial services sector and keep a strict risk-based approach to regulation. The success of all the projects outlined in the business plan and the groundwork for future growth depend heavily on the company’s internal capabilities.