Dubai’s financial free zone has reported a dramatic surge in trading activity, with over-the-counter transactions hitting $13 trillion in Q4 2025, more than doubling year-over-year in both value and volume. The Dubai Financial Services Authority disclosed Thursday that derivatives drove the expansion, heavily concentrated in foreign exchange and interest rate products. The growth reflects institutional migration to the Dubai International Financial Centre, with major players like TP ICAP tripling its local presence to bridge Asian and MENA markets.
The DIFC licensed 182 new firms in 2025, pushing total regulated entities to 1,050, while banking balance sheets climbed 19% to $251 billion. New arrivals including retail broker Fortrade and institutional liquidity provider B2PRIME are attracted partly by leverage regulations permitting up to 50:1 on major pairs, exceeding EU and UK caps. Dubai now ranks seventh globally in the Financial Centres Index, up from 11th position.
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FXnCO Insight
** Firms seeking regulatory arbitrage on leverage limits and timezone advantages between Asian and European sessions should monitor DIFC’s OTC liquidity depth as it increasingly competes with established hubs.
Source: Finance Magnates