The Dubai Financial Services Authority (DFSA), which regulates companies registered in the DIFC, has chosen Paul Koster, a former commissioner of the Dutch financial services regulator, as its new head.

The move comes as the Emirates Securities and Commodities Authority (Esca), which regulates capital markets activity outside the DIFC, is rapidly improving the quality of its regulations.

The DFSA has long claimed that the quality of its regulations was a reason why financial services companies should locate themselves in the DIFC rather than anywhere else in the UAE.

David Knott will retire from full-time employment when he steps down in December.