Dubai International Financial Centre boosts Dubai's economy
The DIFC has recorded its highest level of activity in its 17-year history. In fact, it is the leading Financial Centre for the entire Middle East, Africa and South Asia (MEASA) region. DIFC's success can be traced to the strategies undertaken by Sheikh Maktoum bin Mohammed bin Rashid bin Rashid al-Maktoum, Deputy Governor of Dubai, Deputy Prime Minister, Minister of Finance and Chairman of the Dubai International Financial Centre. These measures have contributed to the UAE's growing economy, positioning the Dubai Financial Centre as a leading player in the global financial industry.
"Dubai's economy recovered faster than many world economies following the impact of the COVID-19 pandemic. DIFC has helped drive this new phase of growth and we are proud to be a significant contributor to Dubai's GDP. Our focus in 2022 will be to drive the future economy by attracting more financial sector investment to the UAE," said Essa Kazim, Governor of DIFC.
DIFC is comprised of 3,644 entities from various fields. It comprises 17 of the world's top 20 banks, 25 of the world's top 30 global systemic banks, five of the top 10 insurance companies, five of the top 10 asset managers, as well as the world's leading law and consulting firms. There are currently 1,124 active innovation-related financial institutions operating in the Financial Centre, up from 915 in 2020.
Last year, the Centre achieved the growth targets set in Strategy 2024, three years ahead of schedule, further strengthening its global economic profile in a year marked by the global pandemic, registering a total of 996 companies in DIFC in 2021, up 36% from 2020. Thanks to the increase in companies, the DIFC saw annual revenues increase by 16 per cent to Dh897 million compared to Dh774 million in 2020. All of this is a reflection of the strong financial position DIFC enjoys.
"DIFC's improved annual performance reflects Dubai's position at the forefront of the global recovery in the financial sector and the wider economy. The Centre's ability to continue to build a thriving financial community amidst a rapidly changing international environment demonstrates the far-reaching vision that has enabled the emirate to create a strong innovation-driven economy," said the chairman of the Dubai International Financial Centre. "DIFC's exceptional results are also a testament to the confidence that local, regional and global businesses have placed in the Centre as a financial industry hub that promotes growth and commercial enterprise. DIFC's continued success has also been driven by the strong and enduring partnerships that Dubai has built with leading global financial companies by providing them with the high-quality hard and soft infrastructure needed to enhance their competitiveness in an evolving industry," added the Sheikh.
One factor driving the growth of the emirate's Financial Centre was the increase in new clients, many of them from the FinTech and innovation sectors, from 303 to 503 in 2021, but there has also been a growth in clients from business sectors such as banking, capital markets, wealth and asset management, and professional services. New firms joining DIFC included Air Liquide Middle East & India Holding Limited, BentallGreenOak Advisors (UK) LLP, DP World Financial Services, Dual Corporate Risks Limited, General Reinsurance AG, Howden Insurance Brokers Limited, Hines, Mamopay, Richemont and Thunderbird Global Innovation Center.
Following the success of Strategy 2024, Strategy 2030 was adopted last year, reflecting DIFC's important role in supporting sustained economic growth and differentiating Dubai as a global hub for financial institutions, FinTech companies and innovation companies. The Financial Centre also launched the DIFC Innovation Hub, the region's largest cluster of FinTech and innovation companies, which will triple the size of the Centre by the end of 2023. The DIFC also established an Innovation Panel, which brings together global and regional thought leaders on the future of finance from industry, academia and regulation.
While DIFC is the leading global financial centre in the area, the new Strategy 2030 will see it become a global centre for business and innovation, enabling DIFC to double in size and double its economic contribution to Dubai's GDP. It will also continue to strengthen the UAE's competitiveness by working closely with the UAE Central Bank to drive the digitalisation of the UAE's financial sector.