PART TWO · 08 · Law & Regulation

The DFSA — Regulator

Authored byLegability Reading time · 4 min Updated · Q1 2026

Mandate, Structure, and Governance

The DFSA is the sole independent financial services regulator for the DIFC. Its mandate spans the full spectrum of financial activity conducted in or from the DIFC, including asset management, banking and credit services, securities, collective investment funds, custody and trust services, commodities futures trading, Islamic finance, insurance, an international equities exchange (NASDAQ Dubai), and an international commodities derivatives exchange (Dubai Mercantile Exchange). In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing anti-money laundering (AML) and counter-terrorist financing (CTF) requirements applicable in the DIFC. (DFSA About, dfsa.ae¹)

As of the most recent published data, the DFSA supervises:

Category	Number
Authorised Firms	844
DNFBPs (Designated Non-Financial Businesses and Professions)	119
Registered Auditors	22
Authorised Market Institutions	2

(DFSA Homepage, dfsa.ae²)

The DFSA was established on 13 September 2004, when the Ruler of Dubai enacted the law creating the DFSA as an independent entity within the DIFC. (DFSA Journey, dfsa.ae³)

Board of Directors: The DFSA Board is appointed by H.H. Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, President of the DIFC, for three-year terms. The Board currently consists of 10 Directors, of whom all but the Chief Executive are independent non-Executive Directors drawn from "leading industry, legal and regulatory experts from major international financial jurisdictions." The Chairman is Fadel Abdulbaqi Al Ali, who was appointed following the retirement of Saeb Eigner in 2021. (DFSA Board of Directors, dfsa.ae⁴)

Board Committees: The Board operates through a Legislative Committee (which scrutinises proposed rule and law changes), an Audit Committee, a Risk Committee, a Governance and Nominations Committee, a Remuneration Committee, and an Emirati Working Group. (DFSA Board of Directors, dfsa.ae⁴)

Executive Leadership: Mark Steward was appointed Chief Executive in May 2025. Mr. Steward previously served as Executive Director of Enforcement and Market Oversight and as Executive Director of the International Division at the UK's Financial Conduct Authority (FCA). Notably, he formerly chaired IOSCO's Multi-lateral Memorandum of Understanding Monitoring Group. (DFSA Executive Team, dfsa.ae⁵)

Relationship to DIFC Authority: The DFSA is operationally independent of the DIFC Authority (DIFCA) but functions within the DIFC as a whole. Under the Regulatory Law 2004, the DFSA Board has the power to make or amend rules and will propose primary legislation to the President of the DIFC for recommendation for enactment by H.H. Sheikh Mohammed bin Rashid Al Maktoum. This structure separates day-to-day regulatory activities from the DIFC's broader governance. (DFSA Board of Directors, dfsa.ae⁴)

Regulatory Philosophy: The DFSA's stated approach is to be "a risk-based regulator and to avoid unnecessary regulatory burden." It applies a continuous risk management cycle to identify, assess, prioritise, and mitigate unacceptable risks to its regulatory objectives. The regime focuses on outcomes rather than prescriptive process compliance. (DFSA How We Regulate, dfsa.ae⁶)

Financial Markets Tribunal (FMT): Created under the Regulatory Law 2004, the FMT hears References (full merits reviews of DFSA decisions) and Regulatory Proceedings. It is operationally independent of the DFSA Board and Executive. FMT decisions may be appealed to the DIFC Court on a point of law, with permission of the FMT or the Court. (DFSA FMT, dfsa.ae⁷)

International Cooperation and MoUs

The DFSA has signed bilateral Memoranda of Understanding (MoUs) with more than 110 regulatory authorities across the globe. Its 110th MoU was signed with the International Financial Services Centre Authority (IFSCA) of India. (DFSA Journey, dfsa.ae³)

The published MoU list covers regulators across Abu Dhabi, Australia, Bahrain, Bangladesh, Belgium, Canada, Cayman Islands, China (CBIRC and CSRC), Cyprus, Denmark, Dubai Police, Egypt, ESMA (re Credit Rating Agencies and Central Counterparties), France, Germany, Greece, Guernsey, Hong Kong, Iceland, India (RBI, SEBI, IFSCA), Indonesia, Ireland, Isle of Man, Israel, Italy, Japan, Jersey, Jordan, Kazakhstan (AFSA), Kuwait, Lebanon, Luxembourg, Malaysia (BNM and SC), Malta, Mauritius, Morocco, Netherlands, New Zealand, Oman, Portugal, Qatar (QFCRA), Russia, Saudi Arabia (SAMA), Singapore (MAS), South Africa, South Korea, Sweden, Switzerland (FINMA), Taiwan, Thailand, Turkey, UAE (Central Bank, Insurance Authority, SCA, TRA), the UK (FCA, PRA), and the United States (NY State Banking, CFTC, Federal Reserve/OCC/FDIC, PCAOB). A separate set of 27 agreements with EU member-state regulators has also been signed under the AIFMD framework. (DFSA How We Regulate, dfsa.ae⁶)

IOSCO: The DFSA participates in the work of the International Organisation of Securities Commissions (IOSCO). The DFSA's Chief Executive, Mark Steward, formerly chaired IOSCO's Multi-lateral Memorandum of Understanding Monitoring Group. (DFSA Executive Team, dfsa.ae⁵) The DFSA hosted IOSCO's Emerging Markets Committee Annual Conference in December 2007. (DFSA Journey, dfsa.ae³) In 2007, the IMF's FSAP included a "Detailed Assessment of Observance of IOSCO Objectives and Principles of Securities Regulation" and concluded that the DFSA had "Fully Implemented" 27 of 30 applicable IOSCO Principles and "Broadly Implemented" the remaining two. (DFSA International Assessment, dfsa.ae⁸)

IAIS: The DFSA became a signatory to the International Association of Insurance Supervisors (IAIS) multi-lateral MoU — a first for the GCC — and successfully hosted the 17th Annual Conference of the IAIS in Dubai. (DFSA Journey, dfsa.ae³)

IFIAR (audit oversight): The DFSA signed an international MMoU with IFIAR (International Forum of Independent Audit Regulators) members "aimed to encourage and support information sharing and cooperation to offer mutual assistance among IFIAR Members." The European Commission subsequently granted the DFSA's audit oversight system equivalent status with EU Member States. (DFSA Journey, dfsa.ae³)

NGFS: The DFSA joined the Network for Greening the Financial System (NGFS), becoming one of the first regulatory authorities in the MENA region to do so. (DFSA Journey, dfsa.ae³)

The DFSA — Regulator

Mandate, Structure, and Governance

International Cooperation and MoUs

Sources