Over the past year, there has been a steady increase in financial services firms setting up in the UAE. Since the start of the year, the sector has accounted for close to one in five new client inquiries, a level of activity that is now difficult to ignore in day-to-day advisory work.
Companies are not entering with a limited presence. In many cases, they are establishing regional bases from the outset, with holding structures and regulated entities set up in parallel. That kind of planning used to come later in the process. It is now happening at the point of entry.
The UAE has moved from being an entry point into the Gulf to a base for regional operations, especially as governments make conscious efforts to support economic diversification across the Emirates. This is particularly clear among firms operating across multiple jurisdictions, where licensing, governance and compliance need to be aligned from the outset.
In previous years, similar structures were often set up in jurisdictions such as Singapore, Luxembourg or the Cayman Islands. The UAE is now competing directly for that role, and in some cases replacing it, particularly where proximity to capital and regional markets matters.
That combination is attracting firms that need both operational flexibility and regulatory certainty. It is also changing how the UAE is positioned internally within these organisations, less as an outpost, more as a core operating base.
Regulatory coordination and clarity
Regulation has developed alongside this growth. Coordination between federal authorities and financial regulators has improved, providing clearer guidance on licensing and oversight across jurisdictions.
For businesses operating internationally, this reduces uncertainty at the point of entry. In practical terms, it means decisions on where to locate regulated activity, holding companies and operational functions are being made earlier and with fewer revisions later.
Frameworks for digital assets, payments and open finance have also been introduced. Open finance allows financial data to be shared securely between institutions, supporting more integrated services.
The result is a more predictable environment for firms that require clear rules before committing capital, particularly those with infrastructure-heavy models.
Abu Dhabi Global Market (ADGM) and Dubai International Financial Centre (DIFC) as financial centres
Abu Dhabi Global Market and Dubai International Financial Centre continue to act as the main hubs for financial service providers and businesses in these activity as the two dedicated financial centres.
ADGM has developed a strong position in funds, fintech companies and digital assets, particularly for firms requiring flexible structuring options. DIFC provides a larger ecosystem, bringing together banks, asset managers and professional firms within a single financial centre.
Many firms operate across both and both of these financial institutions are seeing continued growth in this space. Fund structures and holding vehicles are often based in Abu Dhabi, while advisory and operational functions sit in Dubai. This split is becoming more deliberate as firms design structures around how they actually operate. Growth across both centres has remained strong, supported by continued demand from international firms.
It is important to know that ADGM and DIFC have their own independent financial services regulators that are their to protect, govern and oversee financial services activity. Financial Services Regulatory Authority (FSRA) in ADGM and Dubai Financial Services Authority (DFSA) in the DIFC.
Fintech and digital asset activity
A significant share of new entrants falls within fintech and digital assets. This is no surprise as the country is seeing a huge focus on digital transformation. These include payment platforms, blockchain infrastructure providers and data-driven financial services sectors.
These businesses require clear regulatory treatment, particularly around how digital assets are classified and how cross-border transactions are supervised. The UAE has, over recent years, introduced licensing regimes that address these areas directly, allowing firms to operate within a defined regulatory structure.
What stands out is that many of these are now entering with full models, infrastructure, compliance and scaling plans already in place.
Access to capital and middle east reach
The UAE’s position between Europe, Asia and Africa continues to support its role as a financial centre. Firms based in the UAE can access markets across the Gulf, South Asia and parts of Africa from a single location.
At the same time, the presence of sovereign wealth funds, institutional investors and private capital provides a strong funding base which is part of the reason the UAE is chosen in the first place.
Structured vehicles and investment activity
The increase in financial services activity has also led to greater use of structured vehicles, including SPVs and holding companies.
Most setups now involve more than one entity from the outset. A fund may sit in Abu Dhabi, with investments held through SPVs and advisory functions run from Dubai. As regulatory processes become more aligned, these structures are easier to establish and maintain, removing much of the friction that used to slow down more complex arrangements.
The current level of activity suggests a longer-term shift rather than a short-term increase.
Financial services firms are prioritising jurisdictions that offer regulatory clarity, access to capital and the ability to operate across multiple markets. The UAE is increasingly meeting these requirements, placing it in direct competition with established international financial centres.
If current patterns hold, the UAE’s role is likely to continue moving upstream, from a regional hub to a jurisdiction where structures are designed and managed at a global level.
Sovereign Group supports financial services UAE firms in establishing, from initial structuring through to licensing and ongoing administration. This includes setting up regulated entities, SPVs and holding companies, and coordinating with regulators, banks and professional partners across jurisdictions.
We work across ADGM, DIFC and onshore frameworks, helping clients design structures that are aligned with regulatory requirements and built to support regional operations.
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