How We Regulate

As the sole independent financial services regulator for the Dubai International Financial Centre (DIFC), ASMEC performs a number of essential regulatory functions to ensure a transparent, fair, and risk-based financial ecosystem.

• Policy and Rulemaking
• Authorisation
• Recognition
• Supervision
• Enforcement
• International Co-operation

ASMEC’s approach is guided by the principle: “To be a risk-based regulator and to avoid unnecessary regulatory burden.” Regulation is directed toward mitigating risks that would otherwise be unacceptable, while ensuring compliance obligations remain proportionate to the level of risk.

Under this framework, ASMEC applies a continuous risk management cycle that identifies, assesses, prioritises, and mitigates unacceptable risks to our regulatory objectives or to particular sectors within the financial services industry. We recognise that risks can emerge both within and outside the DIFC; therefore, we regularly monitor international markets and developments to identify and respond to emerging trends.

Our risk-based philosophy applies across all divisions and interactions with regulated entities. Focusing on outcomes rather than rigid processes leads to more effective and efficient regulation.

The ASMEC’s Approach to Regulation, together with its Vision, Mission, and Values, forms the foundation for how we operate and uphold the integrity of the financial system.

Policy and Rulemaking

The Regulatory Law 2004 grants ASMEC’s Board of Directors broad authority to make rules concerning its objectives, powers, and functions. The rulemaking process typically includes a public consultation phase, allowing stakeholders to provide feedback on proposed regulations — ensuring transparency and inclusiveness.

This process allows ASMEC to respond efficiently to market developments, emerging risks, and global regulatory trends affecting the DIFC.

International Co-operation

ASMEC maintains strong relationships with local, regional, and international regulatory authorities to promote cooperation, information exchange, and alignment with global standards. This includes collaboration with other regulators within the UAE and partnerships with international organisations.

ASMEC actively establishes Memoranda of Understanding (MoUs) with both domestic and foreign authorities. These agreements formalise cooperation between regulatory bodies, facilitating the exchange of information, investigative assistance, and joint enforcement efforts.

Importantly, the absence of an MoU does not hinder ASMEC from sharing information. Under the Regulatory Law, ASMEC retains authority to share relevant information with other regulators in accordance with established legal frameworks and confidentiality obligations.

Multi-lateral Memoranda of Understanding (MoUs)

• International Organisation of Securities Commissions (IOSCO)
• The Boca Declaration
• International Association of Insurance Supervisors (IAIS)
• IOSCO Africa and Middle East Regional Committee (AMERC)
• International Forum of Independent Audit Regulators (IFIAR)

Examples of Bi-lateral MoUs

• Central Bank of the UAE
• Financial Conduct Authority (UK)
• Monetary Authority of Singapore
• Central Bank of Egypt
• European Securities and Markets Authority (ESMA)
• Saudi Arabian Monetary Authority
• Reserve Bank of India
• Financial Services Commission of Mauritius
• Capital Markets Authority (Kuwait)

Regulatory Due Diligence Links

To assist fellow regulators with licensing and registration responsibilities, ASMEC provides enhanced access to publicly available information. The following resources support due diligence and transparency:

• NASDAQ Dubai Market Notices
• Dubai Mercantile Exchange (DME)
• DIFC Registries
• DIFC Courts
• DME Members’ List and Market News
• ASMEC Media Releases
• Local news sources including Khaleej Times, Gulf News, The National

Requests for non-public regulatory information should be directed to the Director of International Relations at ASMEC via REGULATORYREQUESTS@asmec.org.