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DIFC AI Regulation

DIFC Data Protection Regulation 10 of 2023 (AI Provisions)

First enacted AI-specific regulation in the Middle East, Africa, and South Asia (MEASA) region. Establishes risk-based framework for AI systems in the DIFC financial free zone, with requirements for transparency, human oversight, and accountability.

Jurisdiction

UAE - Dubai International Financial Centre

AE-DIFC

Enacted

Sep 1, 2023

Effective

Jul 1, 2025

Enforcement

DIFC Authority

Enacted September 1, 2023 (Regulation 10 of DIFC Data Protection Regulations). Full enforcement January 2026. First enacted AI-specific regulation in MEASA region.

Who Must Comply

This law applies to:

  • DIFC-registered entities using AI systems
  • Financial services firms in DIFC
  • Technology companies operating in DIFC

Who bears obligations:

This regulation places direct obligations on deployers (organizations using AI systems).

Safety Provisions

  • Risk-based classification of AI systems
  • Mandatory registration of AI systems
  • Transparency requirements for AI decisions
  • Human oversight for high-risk applications
  • Accountability and governance requirements

Compliance Timeline

Jul 1, 2025

AI system registration requirements begin

Jan 1, 2026

Full enforcement of all requirements

Enforcement

Enforced by

DIFC Authority

Penalties

license revocation

License revocation

Administrative fines and potential license revocation for non-compliance

Quick Facts

Binding
Yes
Mental Health Focus
No
Child Safety Focus
No
Algorithmic Scope
Yes

Why It Matters

First enacted AI regulation in MEASA region. Sets precedent for AI governance in UAE and broader Gulf region. Important for companies with Middle East operations.

Recent Developments

Registration phase began July 2025. Full enforcement commences January 2026.

What You Need to Comply

AI systems must be registered and comply with risk-appropriate governance, transparency, and human oversight requirements

NOPE can help

Cite This

APA

UAE - Dubai International Financial Centre. (2023). DIFC Data Protection Regulation 10 of 2023 (AI Provisions). Retrieved from https://nope.net/regs/ae-difc-reg10

BibTeX

@misc{ae_difc_reg10,
  title = {DIFC Data Protection Regulation 10 of 2023 (AI Provisions)},
  author = {UAE - Dubai International Financial Centre},
  year = {2023},
  url = {https://nope.net/regs/ae-difc-reg10}
}

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