The Dubai Financial Services Authority (DFSA), the independent regulator of the Dubai International Financial Centre (DIFC), today published its latest report, Cyber and Artificial Intelligence Risk in Financial Services: Strengthening Oversight Through International Dialogue. The full report is available for download here. The report provides timely insights into the evolving digital risk landscape and explores how emerging technologies such as Artificial Intelligence (AI) and quantum computing – which allow the process of complex problems much faster than traditional computers – are reshaping regulatory priorities.
The publication follows the DFSA’s inaugural Cyber and AI Risk Regulatory College, held in May 2025, which brought together 70 senior representatives from 18 financial authorities across the Middle East, North America, Europe, Africa, and Asia. The College served as a platform for international dialogue on the increasing complexity and interconnection of cyber risks, AI adoption, and the long-term implications of quantum computing.
Justin Baldacchino, Managing Director, Supervision, DFSA, said: “Digital risks are no longer peripheral – they are fast becoming systemic. This report reflects a growing supervisory consensus on where these risks are converging and how regulatory approaches are evolving. At the DFSA, we were proud to host our first Cyber and AI Risk Regulatory College, and we look forward to continuing meaningful dialogue with our regional and international peers in support of a secure, resilient, and trusted global financial system.”
The report explores supervisory perspectives on three interconnected areas: cybersecurity threat landscape, quantum computing, and AI emerging risks. It draws on global insights and expert discussions on how financial regulators can respond to emerging risks without compromising innovation.
Key themes highlighted in the report include:
- The increasing frequency and sophistication of cyberattacks, including threats arising from emerging technologies and supply chain dependencies.
- The potential for quantum computing to render current encryption in critical communication systems obsolete, and the importance of early coordinated planning around post-quantum cryptography (the cryptographic algorithms that are designed to be secure against the potential threats posed by quantum computers).
- The growing adoption of AI across financial services highlights the importance of enhancing explainability and interpretability methods, robust third-party risk oversight, and responsible governance.
Herman Schueller, Director, Innovation & Technology Risk Supervision, DFSA, commented: “As innovation accelerates, financial regulators globally are actively examining how best to adapt oversight practices. This report reflects the value of open, cross-border dialogue in building mutual understanding of the regulatory, technical, and operational dimensions of digital risks.”
The report contributes to the DFSA’s wider commitment to forward-looking supervision and its role in fostering collaborative, principle-based approaches to regulating emerging technologies. The DFSA continues to engage in international dialogue on emerging technology risks through initiatives such as its Threat Intelligence Platform, evolving work on AI oversight, and broader innovation agenda within the DIFC.
The full report is available at for download here.
