DIFC growth lifts Dubai finance rank

Dubai’s financial regulator recorded another year of strong licensing activity in 2025, as the emirate’s financial centre crossed 1,000 regulated entities and Dubai rose to seventh place in the Global Financial Centres Index, its highest position to date.

The Dubai Financial Services Authority licensed and registered 182 new firms during the year, a 16 per cent increase on 2024, taking the total number of regulated entities in Dubai International Financial Centre to 1,050 across banking, capital markets, wealth and asset management, insurance and fintech. The annual figures marked the third consecutive year of double-digit growth in the regulated financial services ecosystem.

The advance came as Dubai strengthened its claim as the Middle East, Africa and South Asia region’s leading financial hub, supported by rising flows of asset managers, private banks, hedge funds, insurers and fintech businesses. The March 2026 edition of the Global Financial Centres Index placed Dubai seventh worldwide, up from 12th in the previous year’s ranking, making it the only financial centre from the region in the global top 20.

The DFSA’s 2025 annual report pointed to broad-based expansion rather than growth concentrated in a single segment. Fund management remained one of the fastest-growing areas, with 121 authorised firms and 276 funds operating in the centre. Assets under management in the wider wealth and asset management sector rose to $176 billion, up 4 per cent year on year, while assets under advisory reached $220 billion, an increase of 22 per cent.

The data underline the growing role of Dubai as a base for investment firms seeking access to Gulf capital, cross-border wealth flows and emerging-market opportunities. DIFC has become a top-five global hub for hedge funds, with 87 registered in the centre, including two of the world’s largest. The centre’s appeal has been reinforced by the emirate’s tax environment, time zone, regulatory framework, lifestyle offering and proximity to sovereign wealth funds and family offices across the Gulf.

Banking activity also expanded during the year. The combined balance sheets of banks operating in DIFC reached $251 billion at the end of the fourth quarter, up 19 per cent from a year earlier and 195 per cent higher than at the end of 2015. Private banking assets under advisory rose 23 per cent to $103.8 billion, supported by a client base of more than 14,000.

Capital markets remained a key part of the centre’s growth strategy. New debenture listings totalled $30.6 billion in 2025, lifting outstanding listings to $147.4 billion. DIFC also maintained its position as a major sukuk listing jurisdiction, with $107.9 billion in outstanding listings. Over-the-counter market activity recorded strong expansion, with transaction value and volume exceeding $13 trillion in the fourth quarter.

Insurance and reinsurance activity added to the momentum. The number of insurance-related entities increased by 15 per cent, while gross written premiums reached $4.24 billion for reinsurers and reinsurance underwriters and $3.38 billion for insurance brokers. The figures point to Dubai’s increasing role as a regional risk-transfer and specialist insurance centre as businesses across the Gulf expand infrastructure, trade, aviation, energy and financial activity.

The DFSA’s report also highlighted market integrity as a central concern during a period of rapid expansion. The regulator progressed 17 enforcement matters at the investigative stage during 2025 and concluded seven by year-end. It received 322 complaints involving firms or individuals within its jurisdiction, resolving 81 per cent within 28 days, and issued 49 consumer alerts, a 69 per cent increase from 2024, as scams and unauthorised activity remained a risk for fast-growing financial centres.

Regulatory cooperation continued to deepen. By the end of 2025, the DFSA was a signatory to 120 memoranda of understanding, five multilateral memoranda and eight innovation agreements, giving it channels for cross-border supervision and information-sharing at a time when financial firms are increasingly operating across several jurisdictions.

Technology formed another major theme in the annual report. The DFSA’s Tokenisation Regulatory Sandbox, launched in March 2025, drew 96 expressions of interest from firms across six jurisdictions. Its annual artificial intelligence survey found that 52 per cent of DIFC firms were using AI in 2025, compared with 33 per cent in 2024, while adoption of generative AI rose 166 per cent year on year.

Dubai’s broader financial centre also recorded landmark growth in 2025, with new company registrations at DIFC rising nearly 40 per cent to 1,525 and total active registered firms reaching about 8,840 by the end of December. DIFC is pursuing a long-term expansion plan intended to support further growth towards 2040, after high occupancy and sustained demand from financial services firms placed pressure on available space.