Dubai has approved its new Financial Sector Strategy, marking a milestone in the emirate’s efforts to expand regulated financial and virtual-asset activity. The Virtual Assets Regulatory Authority (VARA) has overseen AED 2.5 trillion ($680 billion) in licensed transactions this year.
Dubai Financial Strategy Targets AED 2.5 Trillion Virtual-Asset Market Growth
14 October 2025 - 00:35 CEST
Financial sector strategy endorsed
At a meeting of the Higher Committee for the Development of the Economic and Financial Sector, chaired by H.H. Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai and Minister of Finance, the emirate approved a roadmap to double the financial sector’s GDP contribution and expand assets under management.
The Dubai Financial Sector Strategy (DFSS) outlines 15 programmes over three years, targeting capital markets, asset and wealth management, SME financing, fintech, and virtual-asset services. Sheikh Maktoum described the plan as a “major step for Dubai’s financial sector” and said it will help position the city among the world’s top three financial hubs, in line with the Dubai Economic Agenda D33.
VARA: world’s largest licensed virtual-asset market
According to data shared by Sheikh Maktoum on LinkedIn and confirmed by the UAE News Agency (WAM), Dubai now hosts more than 40 licensed virtual-asset service providers (VASPs) and over 600 registered firms engaged in advisory, technology, or proprietary-trading activities that do not require full regulation.
Assets under management in the world’s largest licensed virtual-asset market have surpassed AED 9.6 billion in 2025.
The virtual-assets industry currently contributes about 0.5% of Dubai’s GDP and, under the regulated VARA regime, is projected to scale to 3%.
Legal foundation and oversight
VARA was established under Law No. 4 of 2022 Regulating Virtual Assets in the Emirate of Dubai, with its Virtual Assets and Related Activities Regulations 2023 providing the operational framework.
The regulations define permissible activities, such as custody, exchange, and asset management, and require any firm serving Dubai-based clients or investors to obtain a VARA licence. Officials said the framework balances innovation with financial stability safeguards within clearly defined supervisory boundaries.
Broader financial-market objectives
Alongside VARA’s progress, the committee reviewed the performance of the Dubai Financial Market (DFM). The DFM General Index stands at 5,957.4, up 33.7% year-to-date, despite modest recent declines. Total market capitalization remains near AED 1 trillion, its highest level since 2008.
Major transactions this year included the AED 1.4 billion IPO of ALEC Holding and an AED 3.15 billion secondary public offering for telecom operator DU, both strengthening market depth and liquidity.
The DFSS also introduces measures to encourage family-business listings, expand SME financing models, and attract new asset managers and family offices. Dubai now ranks 11th in the latest Global Financial Centres Index (GFCI 2025), up from 16th last year, leading major financial hubs in projected future growth.
The bigger picture
The Higher Committee said the initiatives align with D33’s goals to enhance Dubai’s competitiveness and long-term growth across both traditional and digital finance. Market participants noted that VARA’s transparent licensing framework and cross-sector coordination strengthens investor confidence in Dubai’s evolving regulatory environment.
