The Dubai Financial Services Authority (DFSA) continues to support the growth of the Islamic finance sector within the Dubai International Financial Centre (DIFC), while observing rising interest in Shariah-compliant fintech solutions — further reinforcing the UAE’s emergence as a global financial hub, according to a senior official. Charlotte Robins, Managing Director, Policy and Legal at the DFSA, said that regulatory clarity, strong governance standards, and robust disclosure frameworks remain critical to strengthening investor confidence and driving market development. “We have recently launched Consultation Paper 172 (CP 172), which proposes enhancements to the DFSA’s Islamic Finance Rules Module. These efforts support DIFC’s position as one of the world’s leading centres for sukuk issuance, with more than $100 billion in outstanding sukuk listings,” Robins told BTR during an interview. Robins joined the DFSA in May 2024 as Managing Director of Policy and Legal. She is responsible for leading the further development of the DFSA’s policy framework, managing legal risks, providing comprehensive legal advice and support across all DFSA functions, as well as drafting the administrative laws and rules that form the DFSA’s regulatory framework. Robins, who is qualified to practice law in England and Wales, as well as in Hong Kong SAR, accumulated more than 22 years of experience as a private practice lawyer in Hong Kong. She advised a diverse range of financial institutions — including investment and private banks, fund and wealth managers, and insurance companies on financial services regulation — covering conduct and prudential requirements, strategic business development, regulatory change and risk management. Excerpts from the interview: What initiatives have you taken to promote Islamic Finance in DIFC? The Dubai Financial Services Authority’s (DFSA) approach has been to support the continued development of the Islamic finance sector within Dubai International Financial Centre (DIFC) by ensuring that its regulatory framework remains clear, proportionate, and aligned with market developments. This includes addressing areas where greater regulatory clarity or consistency is needed for firms operating in the sector. Most recently, we launched Consultation Paper 172 (CP 172), which proposes enhancements to the DFSA’s Islamic Finance Rules Module. The proposals provide greater clarity on when an Islamic endorsement is required and strengthen Takaful (the Shariah-compliant mutual insurance system where members share risk and support each other) disclosure requirements to help clients better understand how these products operate before making investment decisions. The DFSA also contributes to wider industry initiatives through representation on industry groups and committees, including: · The Islamic Finance Industry Sub-Committee established under the UAE Strategy for Islamic Finance and Halal Industry, which supports the development of the sector, alignment with international practices, and greater integration with sustainability-related initiatives. · The UAE Sustainable Finance Working Group (UAE SFWG), whose principles for sustainability-related disclosures and climate-related financial risks are increasingly relevant in the context of Environmental, Social, and Governance (ESG) Sukuk and other sustainable Islamic finance instruments. · The Islamic Finance Consultative Group organised by the International Accounting Standards Board (IASB), which supports dialogue on accommodating Islamic financial instruments within international accounting standards. These efforts all support DIFC's position as one of the world's largest venues for sukuk issuance, with more than $100 billion of outstanding sukuk listings, including in relation to ESG. As sustainability considerations become increasingly relevant within Islamic finance, regulatory clarity, governance standards, and disclosure frameworks remain important in supporting investor confidence and market development. How do you see the scope of Shariah-compliant fintech products in the UAE? We are observing increasing interest in Shariah-compliant fintech solutions, including from issuers exploring the digitalisation and tokenisation of the sukuk issuance lifecycle. Tokenisation can improve efficiency through faster settlement, enhanced transparency through distributed ledger technology, and broader investor accessibility with fractional ownership which enables smaller investors to participate — whilst maintaining Shariah-compliance requirements. From a regulatory perspective, our focus is not on the technology itself, but on ensuring that the same standards apply regardless of the technology or delivery channel. Firms must clearly explain how Shariah compliance is achieved, the governance arrangements in place, what the clients are investing in, and the associated risks. What are the major challenges in Islamic finance industry development? Please elaborate. We see several key challenges in regard to the development of the Islamic finance industry development, particularly as products and business models continue to evolve across jurisdictions including: Achieving consistency and clarity across jurisdictions — differing Shariah interpretations and documentation approaches can affect market standardisation, execution timelines, and legal certainty; and Clarity around the role and status of firms providing Islamic products — in practice, some firms may distribute or provide access to Islamic products without clearly defining their role or whether they are presenting themselves as providing Islamic financial services. This can create uncertainty both for firms seeking to understand their regulatory obligations and for clients seeking to understand the nature of the services they are receiving.