To enhance the Islamic finance regulatory framework within the Dubai International Financial Centre (DIFC), the Dubai Financial Services Authority (DFSA) has launched a public consultation, as the UAE eyes consolidating its position as a global hub for Sharia-compliant financial networks.
The consultation, announced through Consultation Paper No. 172 (CP 172), proposes several updates, including clearer guidance on when authorised firms must obtain Islamic finance endorsements, enhanced disclosure requirements for Takaful products, and technical amendments to the DFSA’s Islamic Finance Rules module to provide greater regulatory clarity for firms operating Islamic financial services within the DIFC jurisdiction.
The initiative also aligns with the UAE’s broader strategies focused on expanding its Islamic finance sector, including the UAE Strategy for Islamic Finance and Halal Industry and Dubai’s D33 Economic Agenda. The strategy for Islamic finance and the halal industry, launched in 2025, aims to solidify the Gulf as a major global hub for Sharia-compliant economies by 2031. The framework’s key goals are doubling Islamic banking assets to over AED 2.56 trillion (USD 697 billion) and growing Sukuk listings to over AED 660 billion.
D33 Economic Agenda is a 10-year strategy (2023–2033) launched by UAE PM Sheikh Mohammed bin Rashid Al Maktoum to execute the Middle East nation’s vision of doubling Dubai’s economy to AED 32 trillion, solidifying the urban centre’s position as a top-three global city.
According to DFSA data, the UAE remains one of the leading global markets for Islamic finance, while the DIFC has become one of the world’s largest venues for Sukuk listings, with more than USD 100 billion in outstanding Sukuk issuances.
Charlotte Robins, Managing Director of Policy & Legal at the DFSA, told Emirates News Agency (WAM) that the regulator aims to ensure firms have the clarity needed to operate with confidence as adoption of Islamic finance continues to grow globally.
Among the key proposals under CP 172, the DFSA plans to clarify circumstances where firms presenting products or services as Sharia-compliant would need an Islamic endorsement. Takaful products, on the other hand, will need stronger disclosure requirements, including transparency around fee calculations, surplus-sharing mechanisms, and additional contribution obligations for participants.
“The regulator emphasised that firms distributing Islamic financial products without directly representing them as Sharia-compliant may not require additional endorsements, provided existing client protection obligations are met,” WAM reported.
“Industry participants, authorised firms, advisers, and market institutions are invited to submit comments through the DFSA’s online response platform until June 19, 2026. Following the consultation period, the DFSA will review feedback before finalising potential amendments to the Rulebook,” it added.