Here are the differences between DIFC and DFSA

With global investors and businesses being lured into UAE, Dubai has become a major financial center in the Middle East. The major players in this financial sector are the Dubai International Financial Centre (DIFC) and the Dubai Financial Services Authority (DFSA). However, both of these are vital for the growth of Dubai as they have distant roles to play.

Known as an esteemed financial hub in the region, DIFC was established in 2004. It functions as a separate entity within the UAE, with its own legal system and regulatory framework. Among the services offered by the center are financial and legal services, office space, and a regulatory framework aligned with international standards for companies seeking to establish a presence in the region. It houses more than 2,000 firms, including banks, asset managers, insurance companies, and other service providers. The DIFC is regulated by the DFSA, which follows the laws of the financial center.

The Dubai Financial Services Authority (DFSA) operates as an autonomous regulator of financial services in the DIFC. Its role is to ensure that financial service firms function transparently within the DIFC abiding by the international standards and regulations.

It supervises and looks over the activities of the financial firms in the DIFC and provides them with licenses. Further, it conducts investigations to assure that these firms comply with regulatory requisites. The DFSA world closely with international organizations and other regulators to ensure that the DIFC's regulatory environment complies with international standards.

While compared to DIFC, the DFSA mainly focuses on supervising the financial service firms within DIFC. However, DIFC offers a wide range of services to enterprises that are looking to set up in the region. It functions independently in the UAE, whereas DFSA is accountable for ensuring compliance with global regulations in the DIFC.

Although both the DIFC and the DFSA perform their critical responsibilities in Dubai's financial sector. While the DIFC offers services for a new company to establish, the DFSA  supervises financial services firms within the DIFC. Simultaneously, they contribute to Dubai's thriving financial ecosystem, drawing in global investors and companies.