United Arab Emirates: Dubai International Financial Centre (DIFC)
The DIFC is a financial free zone in Dubai with an independent regulator, the Dubai Financial Services Authority (DFSA). It hosts wholesale banks, asset and wealth managers, brokers, insurers, crypto and money services firms, and DFSA capital and fees are set in US dollars rather than UAE dirham.
Risk flagStandard
FATFNot listed
EU AML high-risk listNot listed
EU tax listNot listed
Licence regimes7
CurrencyAED
S&P ratingAA
Next electionOctober 2027
The UAE left the FATF grey list on 23 February 2024 and is not on the FATF lists after the 17 to 19 June 2026 plenary; it was removed from the EU high-risk list by Delegated Regulation (EU) 2025/1184 (it had been added by 2023/410) and is not on EU tax Annex I as updated 17 February 2026. Checked 7 October 2026.
Government and politics
Government
Federal elective constitutional monarchy (federation of seven emirates)
President
Mohamed bin Zayed Al Nahyan · since May 2022
Prime Minister and Vice President
Mohammed bin Rashid Al Maktoum
Governing parties
No political parties in government
Last election
Federal National Council (electoral college vote), 7 October 2023
Next election
Federal National Council, October 2027. The Federal Supreme Council's five-yearly election of the President is also due in 2027; political parties are banned
Legislature
Federal National Council (unicameral, advisory; 40 seats: 20 indirectly elected, 20 appointed); the Federal Supreme Council of the seven emirate rulers is the highest constitutional authority
Legal system
Common law framework (DIFC Courts) within the UAE civil law system
Economy and finance
Population
11.5m (2025)
GDP
USD 571.6bn (2025)
GDP per person
USD 50,232 (2025)
Currency
UAE dirham (AED), pegged to USD at 3.6725 per dollar
Central bank
Central Bank of the UAE
Credit rating
S&P AA (stable) · Moody's Aa2 (stable) · Fitch AA- (stable) (as of June 2026)
The Dubai International Financial Centre is a financial free zone with its own civil and commercial laws, English-language common law DIFC Courts and an independent regulator, the Dubai Financial Services Authority (DFSA).
Bank
Licence to carry on Accepting Deposits (Category 1, or Category 5 for an Islamic Financial Institution managing an unrestricted PSIA)
Minimum capitalUSD 10m
TimelineNot published
AuthorityDFSA
USD 10 million Base Capital Requirement for Category 1 and Category 5 (PIB 3.6.2), plus risk-based capital requirements
Application fee USD 70,000 for Accepting Deposits or Providing Credit (FER 2.1.1, version in force from 1 July 2025), plus 100% surcharge where FER 2.1.1(3) factors apply (e.g. multi-level group, DFSA as consolidated supervisor); annual fee base USD 100,000 (FER 3.2.1) plus expenditure-based element.
Passporting
No passport. A DFSA Licence covers Financial Services carried on in or from the DIFC only.
Key requirements
Category 1 applies to firms Accepting Deposits or Managing a PSIAu (PIB 1.3.1); Category 5 to Islamic Financial Institutions managing a PSIAu (PIB 1.3.7)
A Bank must not accept deposits from the State's markets, accept deposits in UAE dirham, or undertake FX involving the dirham (COB 4.2.1)
A Bank must not accept deposits from Retail Clients (COB 4.2.1(d))
Mandatory Authorised Individuals: Senior Executive Officer, Finance Officer, Compliance Officer and MLRO (GEN 7.5.1); SEO, Compliance Officer and MLRO must be UAE resident (GEN 7.5.2)
Licence for Dealing in Investments as Principal or Providing Credit (Category 2)
Minimum capitalUSD 2m
TimelineNot published
AuthorityDFSA
USD 2 million Base Capital Requirement; USD 500,000 where the firm deals as principal only as a Matched Principal (PIB 3.6.2)
Law
DFSA Rulebook PIB 1.3.2; PIB 3.6.2
Fees
Application fee USD 40,000 for Dealing in Investments as Principal (not as Matched Principal) and USD 25,000 as Matched Principal; USD 70,000 for Providing Credit (FER 2.1.1). Annual fee base USD 50,000 for Dealing as Principal, or USD 70,000 if the authorisation covers Crypto Tokens (FER 3.2.1).
Passporting
No passport. A DFSA Licence covers Financial Services carried on in or from the DIFC only.
Key requirements
Category 2 covers firms Providing Credit or Dealing in Investments as Principal that are not in Category 1 or 5 (PIB 1.3.2)
Risk-based capital requirements in addition to base capital
Mandatory Authorised Individuals: Senior Executive Officer, Finance Officer, Compliance Officer and MLRO (GEN 7.5.1); SEO, Compliance Officer and MLRO must be UAE resident (GEN 7.5.2)
Licence for Dealing in Investments as Agent or Operating an Alternative Trading System (Category 3A)
Minimum capitalUSD 200k
TimelineNot published
AuthorityDFSA
USD 200,000 Base Capital Requirement (PIB 3.6.2)
Law
DFSA Rulebook PIB 1.3.3; PIB 3.6.2
Fees
Application fee USD 25,000 for Dealing in Investments as Agent (FER 2.1.1); an ATS carries an additional USD 65,000 application fee, or USD 150,000 if it trades Crypto Tokens or unlisted Security Tokens (FER 2.1.5).
Passporting
No passport. A DFSA Licence covers Financial Services carried on in or from the DIFC only.
Key requirements
Category 3A covers Dealing in Investments as Agent or Operating an ATS where the firm is not in Category 1, 2 or 5 (PIB 1.3.3)
Mandatory Authorised Individuals: Senior Executive Officer, Finance Officer, Compliance Officer and MLRO (GEN 7.5.1); SEO, Compliance Officer and MLRO must be UAE resident (GEN 7.5.2)
Retail Client endorsement carries an extra USD 20,000 application fee (FER 2.1.6)
Licence for Managing Assets or Managing a Collective Investment Fund (Category 3C)
Minimum capitalUSD 140k
TimelineNot published
AuthorityDFSA
Category 3C base capital is USD 500,000, but USD 140,000 where the firm only Manages Assets or manages Public or Credit Funds, and USD 40,000 where it only manages other funds (PIB 3.6.2)
Law
DFSA Rulebook PIB 1.3.5; PIB 3.6.2
Fees
Application fee USD 25,000 for Managing Assets; USD 10,000 for managing Public or Credit Funds; USD 5,000 for Qualified Investor Funds only; USD 2,000 for Venture Capital Funds only (FER 2.1.1).
Passporting
No passport. A DFSA Licence covers Financial Services carried on in or from the DIFC only.
Key requirements
Category 3C also covers custody other than for a Fund, trustee services for express trusts and issuing Stored Value (PIB 1.3.5)
Mandatory Authorised Individuals: Senior Executive Officer, Finance Officer, Compliance Officer and MLRO (GEN 7.5.1); SEO, Compliance Officer and MLRO must be UAE resident (GEN 7.5.2)
Expenditure-based capital minimum also applies (PIB 3.7)
USD 500,000 Category 3C Base Capital Requirement (PIB 3.6.2), with a Stored Value Capital Requirement of 3% of average daily outstanding Stored Value over the previous six months (PIB 3.8A.2)
Law
DFSA Rulebook PIB 1.3.5(a)(vi); PIB 3.6.2; PIB 3.8A (Stored Value Capital Requirement)
Fees
Application fee USD 25,000 for Providing Money Services where the firm issues Stored Value (FER 2.1.1).
Passporting
No passport. A DFSA Licence covers Financial Services carried on in or from the DIFC only.
Key requirements
Firm issuing Stored Value is in Category 3C (PIB 1.3.5)
Stored Value Capital Requirement of 3% of average outstanding Stored Value (PIB 3.8A.2)
Mandatory Authorised Individuals: Senior Executive Officer, Finance Officer, Compliance Officer and MLRO (GEN 7.5.1); SEO, Compliance Officer and MLRO must be UAE resident (GEN 7.5.2)
USD 200,000 for Category 3D payment services firms; USD 140,000 for Category 4 firms providing Money Transmission (PIB 3.6.2)
Law
DFSA Rulebook PIB 1.3.5A and 1.3.6; PIB 3.6.2
Fees
Application fee USD 15,000 for Providing Money Services that do not involve Stored Value and are not only Money Transmission; USD 10,000 for Money Transmission only (FER 2.1.1).
Passporting
No passport. A DFSA Licence covers Financial Services carried on in or from the DIFC only.
Key requirements
Category 3D: provides or operates a Payment Account, executes Payment Transactions on another person's account, or issues a Payment Instrument (PIB 1.3.5A)
Category 4 where the only money service is Money Transmission (PIB 1.3.6)
Transaction-based or activity-based capital requirements also apply (PIB 3.8B, 3.8C)
Mandatory Authorised Individuals: Senior Executive Officer, Finance Officer, Compliance Officer and MLRO (GEN 7.5.1); SEO, Compliance Officer and MLRO must be UAE resident (GEN 7.5.2)
Financial Services relating to Crypto Tokens (DFSA Crypto Token regime)
Minimum capitalDepends on the activity's prudential category: e.g. USD 2 million for Dealing as Principal (Category 2), USD 200,000 for Dealing as Agent or operating an ATS (Category 3A), USD 1 million where the only service is Providing Custody of Crypto Assets (Category 3B) (PIB 3.6.2)
TimelineNot published
AuthorityDFSA
Depends on the activity's prudential category: e.g. USD 2 million for Dealing as Principal (Category 2), USD 200,000 for Dealing as Agent or operating an ATS (Category 3A), USD 1 million where the only service is Providing Custody of Crypto Assets (Category 3B) (PIB 3.6.2)
Law
DFSA Rulebook GEN 3A (Crypto Tokens), in particular GEN 3A.2.1 and 3A.2.2; PIB 3.6.2
Fees
Application fee for the underlying Financial Service (FER 2.1.1); an ATS trading Crypto Tokens pays an additional USD 150,000 (FER 2.1.5); annual fee for Dealing as Principal covering Crypto Tokens is USD 70,000 (FER 3.2.1). Varying an existing Licence to add Crypto Tokens costs USD 10,000 to 40,000 depending on the activity (FER 2.2.6).
Passporting
No passport. A DFSA Licence covers Financial Services carried on in or from the DIFC only.
Key requirements
From 12 January 2026 the firm itself must assess and document that each Crypto Token is suitable before using it; Fiat Crypto Tokens must be assessed as suitable by the DFSA (GEN 3A.2.1)
Privacy Tokens and Privacy Devices are prohibited (GEN 3A.2.2)
Funds investing in unsuitable Crypto Tokens are prohibited (GEN 3A.2.1(1)(d))
Mandatory Authorised Individuals: Senior Executive Officer, Finance Officer, Compliance Officer and MLRO (GEN 7.5.1); SEO, Compliance Officer and MLRO must be UAE resident (GEN 7.5.2)
DIFC firms are licensed by the DFSA, not the Central Bank of the UAE; onshore UAE activity needs separate federal authorisation. DFSA prudential category is driven by the highest-risk activity on the Licence (PIB 1.3). Since 12 January 2026 the DFSA no longer keeps a list of Recognised Crypto Tokens: firms assess suitability themselves (GEN 3A.2.1, amended by RMI423/2025). The DFSA does not publish a statutory licensing timeline that we could verify, so timeline_months is null throughout. dfsa.ae pages were blocked to our fetcher; all DFSA figures come from the DFSA Rulebook site (dfsaen.thomsonreuters.com), which is the DFSA's official rulebook. Gaming: no online gaming licence regime in the DIFC. Fees are in USD; the UAE dirham (AED) is the national currency but DIFC Banks may not take dirham deposits (COB 4.2.1).
General information
About United Arab Emirates
Natural Earth boundaries. Map is indicative.
Status
Financial free zone in the UAE (Dubai)
Capital
Abu Dhabi
Largest city
Dubai
Area
83,600 km²
Official languages
Arabic
Time zone
UTC+04:00
Main exports
crude petroleum
refined petroleum
gold
broadcasting equipment
natural gas
Main export partners
China
India
Japan
Iraq
Thailand
Sources for the country information(13)
Country information checked 9 October 2026. Licensing data updated 7 October 2026. Information only, not legal advice; requirements change. Regulatory notice.
