DFSA consults on Islamic finance rules as Dubai pushes sector growth

The Dubai Financial Services Authority has launched a consultation on proposed changes to its Islamic finance regulatory framework, aiming to give firms clearer guidance as activity in the sector expands.

The proposals focus on when authorised firms require an Islamic finance endorsement, as well as stronger disclosure standards for Takaful products. The consultation also includes technical amendments to the Islamic Finance Rules module of the DFSA Rulebook.

The move comes as Dubai continues to position itself as a major centre for Islamic finance. Dubai International Financial Centre (DIFC) is already one of the world’s leading venues for Sukuk listings, with more than $100bn of outstanding Sukuk listings, including ESG-linked issuance, according to the DFSA announcement supplied.

A key element of the proposal is clarity. Firms that hold themselves out as conducting Islamic financial business, provide services connected to Shari’a-compliant products, or manage Islamic funds may require an endorsement. The DFSA also proposes clearer Takaful disclosures covering contract features, fees, surplus-sharing and potential additional contributions.

Charlotte Robins, Managing Director, Policy & Legal at the DFSA, said the regulator wants to ensure firms have the clarity and certainty needed to operate within appropriate boundaries.

The consultation reflects a broader regulatory push to support Islamic finance growth while improving consumer protection, governance and market confidence. The DFSA publishes consultation papers to invite public comments before finalising legislation or rule changes.