DFSA 2025 Annual Outreach: Governance, AI, and DIFC’s Rapid Growth

The Riffle

The DFSA’s 2025 Annual Outreach brought together 500+ industry leaders from across the DIFC to address one clear message: as DIFC grows, governance and compliance frameworks must grow with it.

With Generative AI adoption tripling across firms, rising business complexity, and DIFC crossing 1,000+ regulated entities, the DFSA emphasised the need for proactive oversight, stronger controls, and Board-level involvement to maintain financial integrity and sustainable expansion — all in line with Dubai’s Economic Agenda D33.

Key Highlights

DIFC’s Unprecedented Growth

• Over 1,000+ regulated entities

• USD 240 billion in banking assets

• 11th in GFCI ranking

• Among the Top 4 global FinTech hubs

  This rapid expansion forms the backdrop for the DFSA’s push for stronger systems and controls.

Compliance Must Scale With Expansion

DFSA stressed that internal systems, governance, and risk management cannot remain static as firms grow.

Justin Baldacchino (MD – Supervision) reinforced the core challenge: ensuring systems and controls evolve in step with DIFC’s growth.

Key Findings from Thematic Reviews

• Proactive Compliance Resourcing: Hire ahead of growth, not after.

• Board Oversight: Boards must challenge strategies and document risks.

• Self-Custody Controls: Firms must maintain detailed policies, conflict management, and strong monitoring.

• AI Governance: Generative AI adoption has tripled, but oversight remains insufficient.

Supervisory Focus Areas

DFSA outlined updates across its five core supervision pillars:

• Prudential

• Conduct of Business

• Financial Crime

• Innovation & Technology Risk

• Audit & Infrastructure

Plus updates across Enforcement, Policy, Authorisation, and Markets — including auditor appointments, cyber controls, and financial crime systems.

Conclusion / What Firms Must Do

The DFSA’s message is clear: growth cannot outpace governance.

Firms must:

• Strengthen compliance planning

• Build AI oversight frameworks

• Enhance Board engagement

• Reinforce controls across risk, conduct, and technology

These expectations align with the broader Dubai Economic Agenda D33, supporting DIFC’s position as a leading global financial hub.

Read the full briefing document presented by 10 Leaves here -