RIYADH: New license registrations through the Dubai Financial Services Authority increased by 40% in the first months of this year compared to the same period in 2023.

The group’s CEO Ian Johnston confirmed the increase in issuance to Emirates News Agency on the sidelines of the second Dubai Financial Technology Summit.

Mr Johnston said 2024 will be the most dynamic year for new license issuance to date, building on the momentum achieved over the past two years.

He added that this period will see a number of new licensing activities, including start-ups in the financial technology sector, as well as major corporations and international banks that continue to flock to Dubai International Financial Center.

A hub for the Middle East, Africa and South Asia region, DIFC connects the region’s fast-growing markets with the global economy and provides food, beverage, retail and living amenities, according to its website.

According to WAM, the CEO expected applications from more than 100 companies and 130 to 140 new businesses scheduled to be licensed in the DIFC, reflecting the pace of growth.

He stressed that the base will serve as a major international financial destination in the region and contribute to Dubai’s strategy to strengthen its position as an international financial center in the Middle East.

He said: “We are not only seeing an increase in the number of companies obtaining licenses, but we are also seeing these companies succeed in the DIFC, facilitating private business operations and closing deals. ”

Mr Johnston highlighted Nasdaq’s role in Dubai’s global fixed income and sukuk listing hub, noting that the market is the world’s largest sustainable sukuk market, with more than 60% of the market in USD based on environmental, social and governance standards. He pointed out that approximately 50% of all currencies are related to governance. and social responsibility.

He noted that Nasdaq Dubai has become the leading venue for listing environmental, social and governance sukuk, and that the growing interest in sustainable investing and Nasdaq Dubai’s position as the preferred platform for such issuances has led to Nasdaq Dubai becoming the primary venue for listing environmental, social and governance sukuk. He pointed out that it shows.

Mr Johnston expects the DIFC to continue to see further growth and activity this year, thanks to Dubai’s established status as a regional financial centre, with the center employing more than 40,000 people in addition to financial professionals outside the centre. He emphasized that experts are being accommodated.

The CEO hinted that Dubai was poised to emerge as one of the top four to five global financial centers in the coming years, adding: “We are already committed to achieving that as soon as possible. We are working towards that.”

He highlighted Dubai Financial Services Authority’s goal to foster innovation by supporting the fintech sector within regulations. This is in line with companies’ move towards regulatory compliance and proactive adoption of guidelines for stability and sustainable growth.

In early January, authorities announced in a press release that 2023 will be an exceptional year of growth. “The region’s main regulator licensed and registered a record 117 companies in the 12-month period, an increase of 25% on the previous year” last year. ”

Johnston said one of the positive developments happening right now in terms of rules and governance is that financial technology businesses are starting to understand the regulatory process, and their job as regulators is to protect investors. He explained that the aim was to ensure the imposition of the directive.

DIFC recorded the highest gross premium written in its 20-year history, reaching $2.6 billion in 2023, up 23% year-on-year.

The center also recorded a 20 per cent increase in insurance and reinsurance company registrations, including the first relocation of a Guernsey-based captive.