In a landmark achievement for the United Arab Emirates' financial market, Dubai Clear and Nasdaq Dubai have been granted Tier 1 Third-Country Central Counterparty (CCP) recognition by the European Securities and Markets Authority (ESMA). This prestigious status, effective from December 31, 2025, positions Dubai as the only market in the Middle East and North Africa (MENA) region to achieve such recognition, underscoring its growing credibility on the global stage.

ESMA's Tier 1 recognition is a testament to the robust regulatory and risk frameworks under which Dubai Clear and Nasdaq Dubai operate, aligning them with the European Market Infrastructure Regulation (EMIR). This alignment with EU market infrastructure standards not only highlights the maturity of Dubai's regulatory environment but also enhances its attractiveness as a global financial hub.

The strategic importance of this recognition cannot be overstated. It enables Dubai Clear and Nasdaq Dubai to attract market participants and institutions from the European Union, thereby strengthening cross-border connectivity and reinforcing their role as a bridge between regional issuers and global investors. This development is a significant boost to Dubai's Capital Markets Development Strategy, enhancing access, efficiency, and investor confidence.

Hamed Ali, CEO of Dubai Financial Market and Nasdaq Dubai, emphasized that this milestone reflects the progress Dubai has made in building market infrastructure that global investors recognize and rely on. Fatma Bin Qedad, General Manager of Dubai Clear, also highlighted that ESMA's Tier 1 recognition marks a significant step in Dubai Clear's international growth journey, enhancing its ability to support cross-border activity and deliver efficient, resilient clearing services aligned with global standards.

As Dubai's licensed central counterparties, Dubai Clear and Nasdaq Dubai play a central role in ensuring the resilience and integrity of the emirate's post-trade environment. This recognition not only highlights the growing cooperation between UAE and European regulators but also reinforces Dubai's long-term commitment to transparency, financial stability, and world-class market infrastructure.

Given these developments, the future of Dubai Financial Market PJSC appears promising. The ESMA Tier 1 recognition is likely to attract more international investors, increase trading volumes, and enhance liquidity. Therefore, for investors looking to capitalize on Dubai's growing stature as a global financial hub, the recommendation is to buy and hold onto shares of Dubai Financial Market PJSC.