{"id":12830,"date":"2026-05-06T14:49:34","date_gmt":"2026-05-06T11:49:34","guid":{"rendered":"https:\/\/sahfy.net\/news\/?p=12830"},"modified":"2026-05-06T14:49:34","modified_gmt":"2026-05-06T11:49:34","slug":"the-dfsa-moves-to-accelerate-islamic-finance-sector-growth-in-difc-consulting-on-framework-enhancement-to-provide-greater-clarity-and-strengthen-regulatory-guidance","status":"publish","type":"post","link":"https:\/\/sahfy.net\/news\/?p=12830&lang=en","title":{"rendered":"The DFSA moves to accelerate Islamic Finance sector growth in DIFC, consulting on framework enhancement to provide greater clarity and strengthen regulatory guidance"},"content":{"rendered":"

The Dubai Financial Services Authority (DFSA), the independent banking, financial services, and markets regulator of Dubai International Financial Centre (DIFC), today launched a <\/span>public consultation on proposed enhancements to its Islamic finance regulatory framework<\/span><\/a>. The consultation, which seeks to provide greater clarity on endorsement requirements and disclosure standards, signals a regulatory development that aligns with broader national objectives, including the UAE Strategy for Islamic Finance and Halal Industry and Dubai’s Economic Agenda (D33) to strengthen the UAE\u2019s position as a global hub for international Islamic finance.<\/span><\/p>\n

Consultation paper No 172 (CP 172) proposes clearer guidance on when Authorised Persons (Authorised Firms or Authorised Market Institutions) require an endorsement to conduct Islamic financial business, strengthened disclosure requirements for Takaful (the Shari\u2019a-compliant mutual insurance system where members share risk and support each other), and targeted technical amendments to the Islamic Finance Rules (IFR) module of the DFSA Rulebook.<\/span><\/p>\n

The proposals come as the Islamic finance sector continues its development. The UAE is a leading global market for Islamic finance, according to the Islamic Finance Development Indicator (IFDI)<\/span>. In 2024, it ranked fourth globally by assets and third based on financial performance and supporting ecosystem metrics. DIFC is currently one of the world\u2019s largest global venues for the issuance of Sukuk, with more than USD 100 billion of outstanding Sukuk listings, including in relation to Environmental, Social, and Governance (ESG).<\/span><\/p>\n

Charlotte Robins, Managing Director, Policy & Legal, at the DFSA, said:<\/b> \u201c<\/span>As the Islamic finance sector continues its strong growth trajectory within DIFC, the United Arab Emirates, and globally, we want to ensure that our regulatory framework provides the clarity and certainty that firms need to operate confidently within appropriate boundaries. These proposals reflect our ongoing engagement with the industry and our commitment to supporting the development of this strategically important sector.\u201d<\/span><\/i><\/p>\n

The DFSA operates as a \u201cShari’a systems regulator\u201d \u2013 not making determinations on the Shari’a aspects of financial products or services, but requiring that Authorised Persons set up systems and controls to support their Islamic financial business and associated risks.\u00a0<\/span><\/p>\n

Key proposals on CP 172:<\/b><\/p>\n