Dubai: Dubai Clear, a subsidiary of Dubai Financial Market (DFM), and Nasdaq Dubai have announced that they have been formally granted Tier 1 Third-Country Central Counterparty (CCP) recognition by the European Securities and Markets Authority (ESMA), effective 31st December 2025. This significant recognition positions Dubai Clear and Nasdaq Dubai as the only central counterparties in the Middle East and North Africa (MENA) to achieve ESMA Tier 1 status.
According to Emirates News Agency, this achievement underscores the credibility of the UAE's financial market infrastructure and highlights Dubai's emergence as a globally recognized center for internationally aligned post-trade services. The Tier 1 designation is set to attract market participants and institutions from European Union Countries as clearing members, thereby strengthening cross-border connectivity between Dubai and Europe's capital markets.
ESMA's decision confirms that Dubai Clear, regulated by the UAE Securities and Commodities Authority (SCA), and Nasdaq Dubai, regulated by the Dubai Financial Services Authority (DFSA), operate under regulatory frameworks aligned with the European Market Infrastructure Regulation (EMIR). This recognition reflects the strength and maturity of Dubai's regulatory environment and its alignment with international best practices in risk management and market oversight.
Hamed Ali, CEO of Dubai Financial Market and Nasdaq Dubai, remarked that this milestone showcases the progress Dubai has made in establishing market infrastructure recognized by global investors. He noted that ESMA Tier 1 recognition enhances Nasdaq Dubai's capacity to connect regional opportunities with international capital and supports Dubai's Capital Markets Development Strategy.
Fatma Bin Qedad, General Manager of Dubai Clear, highlighted that ESMA's Tier 1 recognition marks a significant step in Dubai Clear's international growth journey. She emphasized that it enhances their ability to support cross-border activity and deliver efficient, resilient clearing services aligned with global standards.
As licensed central counterparties, Dubai Clear and Nasdaq Dubai play a pivotal role in maintaining the resilience and integrity of Dubai's post-trade environment, supporting the long-term growth and international integration of the emirate's capital markets. The recognition also underscores the growing cooperation between UAE and European regulators, reinforcing Dubai's commitment to transparency, financial stability, and world-class market infrastructure.
