The Dubai Financial Services Authority (DFSA), the independent financial services regulator of Dubai International Financial Centre, has launched a public consultation on proposed enhancements to its Islamic finance regulatory framework.
The consultation, published as Consultation Paper No. 172, seeks to provide greater clarity on endorsement requirements and strengthen disclosure standards for Takaful products. According to the DFSA, submissions are invited until 19 June 2026.
The proposals cover three primary areas. First, the DFSA proposes to specify the circumstances in which authorised persons will be considered as holding themselves out to conduct Islamic financial business and therefore require an Islamic endorsement. This includes firms indicating that all or part of their business operates in accordance with Shari'a, firms providing financial services in relation to products presented as Islamic or Shari'a-compliant, and fund managers operating funds held out as Islamic or Shari'a-compliant. Firms simply providing access to or distributing Islamic financial products without making Shari'a compliance representations would not require an endorsement, subject to existing client protection obligations.
Second, the DFSA proposes strengthened disclosure requirements for all Takaful sales, covering contract features, fee calculations, surplus-sharing arrangements, and potential additional contributions, regardless of whether the authorised person holds an Islamic endorsement.
Third, the paper proposes targeted technical amendments to the Islamic Finance Rules module of the DFSA Rulebook.
Market context and regulatory positioning
The proposals are aligned with the UAE Strategy for Islamic Finance and Halal Industry and Dubai's D33 Economic Agenda. The UAE ranked fourth globally by Islamic finance assets in 2024, according to the Islamic Finance Development Indicator. DIFC is one of the world's largest venues for Sukuk issuance, with more than USD 100 billion in outstanding Sukuk listings, including ESG-related issuances.
Commenting on the move, Charlotte Robins, Managing Director of Policy and Legal at the DFSA, noted that the proposals reflect ongoing engagement with the industry and a commitment to ensuring the regulatory framework provides clarity and certainty for firms operating within appropriate boundaries.
