DFSA's inaugural tokenisation regulatory sandbox attracts expression of interest from close to 100 firms
Dubai, United Arab Emirates: The Dubai Financial Services Authority (DFSA), the independent regulator of the Dubai International Financial Centre (DIFC), has announced that 96 innovative firms have expressed interest in the DFSA's inaugural Tokenisation Regulatory Sandbox. The launch of the sandbox marks a major step forward in the DFSA's strategy to support responsible financial innovation within the DIFC and reflects its growing focus on tokenisation as a transformative force in financial services.
The Tokenisation Regulatory Sandbox forms part of the DFSA's Innovation Testing Licence programme and supports the regulator's broader commitment to fostering innovation while maintaining market integrity and protecting investors. Expressions of interest came from a diverse range of sectors that are exploring the tokenisation of financial assets and instruments, including those associated with the tokenisation of shares, bonds (including Islamic bonds (sukuk)), units in a fund, and the trading and safe custody of those assets – reflecting the broad potential of tokenisation across the financial ecosystem.
The initiative attracted strong interest from both established financial institutions wishing to explore tokenisation use cases and innovative start-ups looking to scale breakthrough digital asset solutions in a regulated environment. This strong engagement underscores DIFC's growing appeal as a global hub for digital finance and innovation.
Justin Baldacchino, Managing Director, Supervision, DFSA, said:"We are excited to see such strong interest in the DFSA's Tokenisation Regulatory Sandbox and to talk about it at the Dubai FinTech Summit. This momentum supports the DFSA's strategic commitment – and aligns with the Dubai Economic Agenda D33 goal – to position Dubai among the world's top four global financial hubs by 2033. The sandbox marks a new chapter in our engagement with innovative financial technologies, enabling firms to safely test tokenised solutions in a transparent, measured, and responsible manner, within a well-regulated environment, without being subject to the full suite of regulatory requirements that would otherwise apply."
The DFSA's themed sandbox approach enables targeted supervision, constructive regulatory dialogue, and the development of tailored policy responses to emerging financial technologies while fostering responsible innovation in the market. It also supports DIFC, Dubai, and the United Arab Emirates' broader ambition to become a global hub for digital assets, fintech, and next-generation financial services and market infrastructure.
Following the Expressions of Interest stage, selected firms will be invited to apply for an Innovation Testing Licence and enter a live testing phase under DFSA oversight, where they can refine their offerings while addressing critical areas such as investor protection, transparency, and financial stability. Upon successful completion of the programme, firms may apply to transition to a full, unrestricted licence, or withdraw their Innovation Testing Licence. For more information on the Innovation Testing Licence, access the explainer guide here.
The DFSA's Tokenisation Regulatory Sandbox underscores the DFSA's commitment to enable innovation in a way that is responsible, informed, and aligned with global regulatory best practice.
For further information, please contact:
Corporate Communications
Dubai Financial Services Authority (DFSA)
Level 13, The Gate, West Wing
Dubai, UAE
Tel: +971 (0)4 362 1500
Email: DFSAcorpcomms@dfsa.ae
https://www.dfsa.ae/
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Khaleej Times
2 hours ago
- Khaleej Times
From GIFT to Singapore: How global hubs are shaping the new playbook
- Associate Partner, MICS Everyone has heard of the UAE's headline single digit nine per cent corporate tax rate. But what most people don't realise is that some of the world's biggest companies despite being based in high-tax jurisdictions, have consistently paid effective tax rates in the single digits, typically ranging from six to nine per cent. How is that even possible? One simple answer: Smart, strategic tax optimisation. So how did these companies structure themselves to achieve such outcomes? Is it still feasible in today's complex and constantly evolving global tax environment? And if so, how complicated is the playbook? Let's unfold the global tax game – and how building the right structure can be your winning move. Where it all begins: Structuring with purpose When companies set up operations, their primary considerations often revolve around ease of doing business, customer proximity, and market access. Surprisingly, tax is rarely the top factor at least initially. But not all functions in a company are tied to these operational dependencies. Some, like headquarters, treasury centres, intellectual property (IP) ownership, holding companies, and SPVs, can be located with greater flexibility. And when done right, these choices can be game-changers for both operational efficiency and tax savings. The big Fours: Holding companies, HQ, treasury, and IP Here's where strategy enters the game: • Holding company: Often used to centralise ownership of subsidiaries and assets, and to efficiently manage dividends, capital gains, and group-level financing. • Headquarters: Can be placed in jurisdictions that offer not only strategic access but also favourable tax regimes. • Treasury functions: Since these involve managing global cash flows and financing, tax and regulatory predictability matter more than physical proximity. • Intellectual Property (IP): IP holding companies are frequently located in countries that offer tax incentives on royalties and capital gains. Locating these functions in jurisdictions with stability, feasibility, predictability, and favorable tax treatment can significantly enhance the bottom line. Equally important are withholding tax (WHT) implications and the availability of double taxation avoidance agreements (DTAAs), which directly impact the tax efficiency of cross-border payments such as dividends, interest, and royalties. Jurisdictions with strong treaty networks often provide reduced or zero WHT rates, making them particularly attractive for housing holding companies, treasury hubs, and IP ownership. There are famous examples – Apple and Google, among others – who have reaped enormous tax benefits simply by strategically housing their IP in favourable jurisdictions. Top jurisdictions for strategic tax functions Each jurisdiction has carved its niche: • Singapore: A globally trusted IP hub offering attractive tax incentives for IP development and commercialisation. • GIFT City (India): Rapidly emerging as a preferred jurisdiction for treasury operations and regional headquarters due to its regulatory clarity and tax exemptions. • Ireland and Luxembourg: Historically favoured for IP and financing structures, though tightening global tax norms have nudged companies to reassess. • UAE: Supported by an extensive network of DTAAs and evolving tax infrastructure, it is gaining ground as a versatile base for several strategic functions. UAE: A strategic player in the evolving tax landscape With the introduction of its corporate tax regime in 2023, the UAE repositioned itself as a credible and competitive jurisdiction in the global tax planning ecosystem. Operating from a qualifying free zone can allow key functions – including HQ, treasury, holding companies, SPVs, and IP – to potentially benefit from a zero per cent corporate tax, subject to meeting substance and activity-based requirements. In addition, access to a growing network of DTAAs allows for potentially favorable withholding tax treatment, enhancing the efficiency of global structures. Rather than aiming to be a low-tax outlier, the UAE is adapting to global standards while still offering targeted advantages that businesses can leverage based on their specific needs. A final reflection In the modern tax environment, where compliance and optimisation must go hand in hand, no single jurisdiction offers a one-size-fits-all solution. Singapore continues to lead as a preferred jurisdiction at least of Asia, for IP and regional HQs due to its R&D incentives and robust legal framework. GIFT City is rapidly gaining ground with focused benefits for treasury operations and financial entities. Ireland and Luxembourg, while reassessing their frameworks post-BEPS, still retain relevance for certain financing and licensing models. The UAE, with its blend of flexibility, treaty access, and evolving infrastructure, is now a serious consideration for global tax planning. Ultimately, the winning move lies in aligning your operational footprint with a tax strategy tailored to your business's functions, risk profile, and growth vision.
Khaleej Times
2 hours ago
- Khaleej Times
UAE infrastructure stocks likely to boom as country embarks on ambitious projects
While the summer season is usually a quieter period for financial markets due to widespread investor holidays, global sentiment remains overshadowed by persistent geopolitical tensions this summer. Escalating concerns over US tariff measures and the intensifying Israel–Iran conflict, with US entering the war on Sunday, have cast a pall over risk appetite, driving cautious investor positioning and heightened market volatility. Yet, against this backdrop of global unease, the UAE is pressing ahead with an ambitious slate of infrastructure projects, using the relative calm of the summer months to accelerate key developments. With lighter traffic during the holiday stretch, authorities are fast-tracking enhancements to the country's transport network, signaling an open window for investors seeking early exposure to the next wave of growth. Major infrastructure initiatives are underway to strengthen both east–west and north–south connectivity across the emirates through new roads and metro extensions. In Dubai, upgrades to Hessa Street and the expansion of the Metro network with the Blue Line are pivotal undertakings aimed at easing congestion and linking emerging residential and commercial hubs. Meanwhile, the landmark Etihad Rail project is progressing steadily, ultimately set to integrate all seven emirates with a modern rail link, opening new avenues for investment in real estate and infrastructure equity. Adding to the skyline's evolution, Dubai Creek Harbour is constructing what is projected to become the tallest tower in the world, surpassing the iconic Burj Khalifa. In tandem, Dubai South continues to evolve as the city's future primary aviation center with the forthcoming Al Maktoum International Airport, cementing the UAE's role as a regional transport and logistics powerhouse. 'These transformative projects are expected to cut travel times by more than 75 per cent' says Razan Hilal, Market Analyst, CMT at adding 'they will boost connectivity across burgeoning districts, laying the groundwork for robust property market performance, economic diversification, and sustainable urban planning for decades to come.' 'While short-term volatility persists due to external shocks, the UAE's commitment to long-term national development plans - Vision 2025, 2030, and 2040 - suggests that current market dips may present strategic entry points for long-term investors', observes Hilal. She adds: 'Amid this climate, portfolio diversification remains prudent. Commodities like oil continue to serve as a hedge against supply disruptions in the region, while gold and silver retain their appeal as safe-haven assets, particularly relevant as industrial demand for silver expands in the technology sector. Several publicly listed companies like Dewa, Union Properties, Tabreed and Salik stand to benefit directly from this wave of development, each playing a strategic role in energy, cooling, real estate, and road toll management respectively. However, despite this local momentum, the MSCI UAE Index has shed over 7 per cent this month, reflecting broader concerns over dollar weakness and geopolitical turmoil. Leading developers such as Emaar Properties have seen share price corrections of around 5 per cent, underscoring the cautious tone prevailing among regional investors. Overall, while global headwinds pose challenges, the UAE's clear focus on future-ready infrastructure and urban resilience reinforces its appeal as a steady beacon of opportunity for investors looking beyond short-term volatility.
Arabian Business
2 hours ago
- Arabian Business
RTA announces major Burj Khalifa-Dubai Mall metro station expansion
Dubai's Roads and Transport Authority (RTA) has announced plans to expand the Burj Khalifa-Dubai Mall Metro Station in partnership with Emaar Properties. The move is part of the authority's efforts to meet rising passenger demand during peak periods including New Year's Eve, public holidays, and national events. #RTA, in collaboration with Emaar Properties, announced the expansion of Burj Khalifa-Dubai Mall Metro Station to boost capacity by 65%. In addition to the planned expansion of the station's area from 6,700 to 8,500 square metres, the project included provisions for enhancing… — RTA (@rta_dubai) June 22, 2025 Dubai Mall/Burj Khalifa metro station expansion to handle 220,000 daily passengers The expansion will increase the station's area from 6,700 to 8,500 square metres, boosting hourly capacity from 7,250 to 12,320 passengers – a 65 per cent increase, the Dubai Media Office (DMO) said in a statement. Upon completion, the station will accommodate up to 220,000 passengers per day. 'The Burj Khalifa/Dubai Mall Metro Station is a key hub in the Dubai Metro network, thanks to its strategic location near Burj Khalifa, Dubai Mall, and )Dubai Downtown(. It serves as a convenient and efficient gateway for residents and visitors, particularly during large-scale events and holidays, particularly New Year's Eve, Eids, national events and public holidays,' Mattar Al Tayer, Director General, Chairman of the Board of Executive Directors of Dubai's Roads and Transport Authority said. 'This expansion project responds to sustained and rising demand for metro services, with projections extending to 2040. Passenger numbers during New Year's Eve exceed 110,000, and the station has recorded an average annual ridership growth of 7.5% over the past five years,' he added. The station has experienced consistent growth since opening in early 2010. Al Tayer revealed passenger numbers rose from 6.13 million in 2013 to 7.254 million in 2016, reaching 7.885 million in 2019 with an average of 43,000 daily boardings and alightings. 'In 2022, the figure climbed to 8.827 million, surpassed 10.202 million in 2023 (56,000 daily average), and exceeded 10.577 million in 2024, with nearly 58,000 daily boarding and alighting,' he revealed. The expansion project includes enhanced entrances and pedestrian bridges to facilitate access, expanded concourse and platform areas, and additional escalators and elevators. Entry and exit gates will be separated to optimise passenger movement, whilst the number of fare gates will increase alongside expanded commercial spaces to boost revenue. The project will integrate with public transport and other mobility modes, and include landscaping enhancements. The architectural design follows the same concept applied to elevated stations on the Red and Green Lines of Dubai Metro. Inspired by the shape of a seashell, the station maintains an interior design philosophy that prioritises safety, security, and ease of movement. The design emphasises clarity and simplicity whilst reducing walking distances where possible. The internal layout preserves visual connectivity, and ground-level entrances are integrated with public transport and alternative mobility options such as bicycles and e-scooters. The station offers direct pedestrian access and integration with the surrounding urban environment. It is designed to be inclusive, considering the needs of People of Determination, senior citizens, residents, and parents with strollers.
