DFSA-Regulated Firms Rise 16% as DIFC Continues Expansion.

Regulated firms operating within the Dubai International Financial Centre (DIFC) increased 16% to 1,050 in 2025, while artificial intelligence adoption among firms rose from 33% to 52%, according to the DFSA Annual Report 2025.

“This signals continued strong confidence in DIFC and Dubai, and a broadening and deepening of the ecosystem, underscored by the DFSA’s risk based, international regulatory environment.” – Mark Steward (Chief Executive)

Commenting on the figures, DFSA Chief Executive Mark Steward said the third consecutive year of double-digit growth reflected continued confidence in DIFC and Dubai, while the financial centre’s ecosystem continued to broaden across banking, capital markets, insurance, wealth management and fintech.

The Dubai Financial Services Authority licensed and registered 182 new firms during the year, marking its third consecutive year of double-digit growth. The report also recorded expansion across banking, wealth management, insurance, capital markets and fintech.

DFSA Annual Report 2025 – Banking, wealth management and capital markets all expanded

The number of authorised fund management firms reached 121

Asset and wealth management remained one of the strongest performing segments within DIFC.

The number of authorised fund management firms reached 121 by the end of 2025, managing $176 billion in assets. Across the wider wealth management industry, more than 320 authorised firms now oversee $220 billion in assets under advisory.

DIFC has also strengthened its position as an international hedge fund destination. By the end of the year, 87 hedge funds were registered within the financial centre, placing Dubai among the world’s leading jurisdictions for hedge fund activity.

The banking sector also recorded steady expansion. The combined balance sheet of DIFC banks reached $251 billion, representing annual growth of 19%, while private banking assets under advisory increased by 23% year on year to $103.8 billion.

Outstanding debenture listings increased to $147.4 billion

Activity in capital markets remained strong throughout 2025.

Outstanding debenture listings increased to $147.4 billion after $30.6 billion in new listings during the year. DIFC also maintained its position as one of the world’s largest sukuk listing centres, with $107.9 billion in outstanding sukuk.

The over-the-counter market recorded $13 trillion in transaction value during the fourth quarter of 2025, demonstrating continued institutional participation across financial markets.

Insurance also delivered another year of growth. Insurance-related entities increased by 15%, while reinsurers and reinsurance underwriters recorded gross written premiums of $4.24 billion. Insurance brokers generated $3.38 billion in gross written premiums.

AI adoption rises to 52% across DIFC firms

The strongest theme in the report is the increasing adoption of emerging technologies.

During the year, the regulator introduced further developments covering digital finance, digital assets, sustainable finance and technology-enabled financial services.

Its Tokenisation Regulatory Sandbox attracted 96 expressions of interest from firms across six jurisdictions, suggesting continued industry interest in tokenised financial products.

Artificial intelligence adoption also accelerated.

The DFSA‘s annual survey found that 52% of firms operating within DIFC actively used AI during 2025, compared with 33% a year earlier. Adoption of generative AI grew by 166% over the same period.

The regulator also introduced DFSA Connect, a digital platform that manages authorisation and approval processes. According to the report, the platform contributed to a 25% increase in authorisation applications while maintaining regulatory oversight.

DFSA expanded international regulatory partnerships

Alongside industry growth, the regulator continued expanding its supervisory activity.

During 2025, the DFSA progressed 17 investigations and concluded seven before year-end. It received 322 complaints relating to regulated firms and individuals, resolving 81% of them within 28 days.

Consumer protection activity also increased. The regulator issued 49 consumer alerts during the year, representing a 69% increase compared with 2024.

International cooperation also expanded. By the end of 2025, the DFSA had signed 120 bilateral Memoranda of Understanding, five multilateral agreements and eight innovation agreements with regulators and organisations across different jurisdictions.

Mark Steward, chief executive of the DFSA, said the third consecutive year of double-digit growth signalled “continued strong confidence in DIFC and Dubai”.

Against a backdrop of global uncertainty, he said investors were looking for jurisdictions with “strong risk-based regulatory frameworks”, institutional depth and long-term strategic credibility.

Dubai is aiming to become one of the world’s top four financial centres by 2033 under the Dubai Economic Agenda (D33) and the DIFC 2030 Strategy. The DFSA said it will continue expanding its regulatory framework across digital finance, AI and tokenisation as those sectors develop.