DIFC continues to drive the future of finance
The Dubai International Financial Centre (DIFC), the leading global financial centre in the Middle East, Africa and South Asia (MEASA) region, have announced outstanding results for the first half of 2024. Coinciding with its 20th anniversary, the results reinforce DIFC’s growing role in driving the future of finance, and reaffirm Dubai’s position as a top global ecosystem for innovation and business growth.
His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance of the UAE and President of DIFC, said, “DIFC’s exceptional performance in the first half of 2024 reflects the comprehensive development vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. Over the past two decades, DIFC’s commitment to innovation, excellence, and strategic growth has not only shaped Dubai’s reputation as a major global financial centre but also contributed to the UAE’s sustainable growth and the economic development of the region.”
“By fostering a robust financial ecosystem, attracting top-tier talent and institutions, and establishing strong networks of global cooperation, DIFC has opened new growth avenues, positioning Dubai as a key focal point for international finance and commerce. Consistent with the goals of the Dubai Economic Agenda D33 to establish the city as one of the world’s top three urban economies and double its GDP over the next decade, we will continue to expand and diversify the financial services community in DIFC. We are also steadfast in our commitment to driving the growth of emerging sectors and advanced financial technologies. Over the coming years, we seek to further enhance DIFC’s industry ecosystem to meet the evolving needs of the global economy and enable businesses, entrepreneurs and investors to tap promising new opportunities,” His Highness added.
20 years of driving growth
The number of active registered companies in DIFC exceeded 6,000 for the first time, increasing from 4,949 to 6,153 year-on-year, representing 24 per cent growth. A total of 820 new companies also joined DIFC in the first six months, a record 24 per cent increase from the same period last year. Reflecting the Centre’s focus on FinTech and Innovation, firms in these sectors grew from 811 to 1,081, up 33 per cent year-on-year. DIFC companies continue to attract talent from across the world and created 4,647 new jobs during the last 12 months. The total workforce now stands at 43,787, an increase of 12 per cent from the first half of last year.
DIFC is home to the largest cluster of financial firms in the region and outperforms the market for growth. Over 370 wealth and asset management firms, including more than 50 pure play hedge funds are now based in the Centre, originating primarily from the GCC, Europe, UK and the US. Assets Under Management in DIFC have increased from USD 444 billion (AED1.630 trillion) to USD 700 billion (AED2.57 trillion), an increase of 58 per cent. The number of funds being marketed in or from DIFC has advanced to 10,032, increasing from 7,641 – a substantial 31 per cent increase. The insurance and reinsurance sector now includes 125 companies, up from 110 which represents 14 per cent growth. During the first half of 2024, it was confirmed that 2023 Gross Written Premiums for the insurance sector reached USD2.6 billion (AED9.55 billion), rising from USD2.1 billion (AED7.71 billion), an increase of 24 per cent.
Occupancy levels for DIFC owned and managed properties remained high at 99.6 per cent. Third party commercial office space occupancy stands at 89 per cent. To address the high demand for A-grade, LEED certified commercial premises, DIFC will bring another 1.6mn sq. ft. of commercial space to market over the next three years. The expansion further highlights DIFC’s growth plans and premium urban real estate ambitions, creating capacity that caters to the demand from wealth and asset management firms, family offices, insurance and re-insurance companies, innovation firms, and the banking and capital markets sector.
FDI Intelligence data identified DIFC as the number one free zone in the world for greenfield FDI projects, which totalled 116 and were valued at USD481 million (AED1.765 trillion) in 2023. Since 2021, the number of projects has increased by 53 per cent.
His Excellency Essa Kazim, Governor of DIFC, commented, “Aligning with the Dubai Economic Agenda D33, DIFC continues to showcase unparalleled growth, cementing its position as the leading global financial centre in the region. Coinciding with the Centre’s 20th anniversary, DIFC’s achievements ensure the financial services industry continues to increase its contribution to the economy. We remain laser-focused on delivering DIFC’s Strategy 2030 by driving growth and shaping the future of finance which will be achieved by keeping innovation at the top of our agenda.”
Arif Amiri, Chief Executive Officer of DIFC Authority, added, “DIFC’s consistently strong performance over the last 20 years, including the first half of 2024, solidifies our prominence as the number one financial centre in the Middle East, Africa and South Asia. The Centre is now home to more than 6,000 companies and close to 44,000 professionals. This significant scale provides DIFC and its clients with an unrivalled opportunity to collectively drive the future of finance across the region.”
