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Dubai International Financial Centre (DIFC) has cemented its position as the leading financial hub in the Middle East, Africa, and South Asia region (MEASA) with a record-breaking 12 months that saw the Centre reach new heights as it enters its 15th year of operations.
In 2018, DIFC reported a year of unprecedented growth, bringing the number of new company registrations to a record high of 437 as of 31 December – the highest since the Centre’s inception in 2004. This growth has resulted in a 15 percent year-on-year increase in the total number of active registered companies operating from the Centre to 2,137, from 1,853 in 2017. Of these, 625 were financial firms. The DIFC has also attracted an influx of local and international talent with 1,226 new jobs created, bringing the size of the Centre’s workforce to 23,604 professionals as at year-end 2018.
The Centre also achieved strong financial performance with net profit increasing by 11% to USD 88 million, from USD 79 million in 2017, excluding fair value (FV) gain on Investment properties.
His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai and President of DIFC, said: “Dubai International Financial Centre was established in 2004 with the vision to become a global financial hub, which we have successfully achieved under the guidance and support of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, over the last 15 years. Today, the Centre’s enabling environment and infrastructure have solidified Dubai’s positioning as a preferred business and lifestyle destination.”
“As the region’s leading financial centre enters a new period of growth through the recently announced plans for DIFC 2.0, this pioneering spirit underpins a new vision to drive the future of finance in MEASA and across the globe. By aligning with the national government agenda that aims to ensure Dubai’s sustained prosperity and accelerate the development journey of the emirate, DIFC will remain at the forefront of financial sector advancement.”
His Excellency Essa Kazim, Chairman of DIFC Authority Board of Directors and Governor of DIFC, said: “The success of 2018 demonstrates that DIFC is clearly on track for our ambitious 10-year strategy to triple in size by 2024. Over the last 15 years, we have achieved the scale, flexibility and sophistication of the world’s most advanced financial ecosystems, bolstered by Dubai Financial Services Authority, our internationally recognised regulator, and the Dispute Resolution Authority, our platform for delivering legal excellence in the Middle East.
“The Centre is home to the largest cluster of financial institutions and most diverse pool of financial talent in the MEASA region. We continue to deliver on our commitment to lead the way towards a new financial landscape, and reinforce the foundations of a thriving business community and an inclusive financial sector.”
The geographic representation in DIFC remained consistent year-on-year, with 36% originating from the Middle East, 33% from Europe, 11% from Asia, 10% from the United States, and 10% from other countries.
Arif Amiri, Chief Executive Officer of DIFC Authority, said: “2018 has been a year of unprecedented success for DIFC, not only in terms of growth, but also the depth of our offering and partnerships.
“We have seen increased momentum across all our key sectors, and particularly in FinTech, wealth management and aviation financing, all benefitting from the evolving legal and regulatory environment we offer. The new partnerships we have forged around the world, and the existing relationships we have strengthened, ensure the transfer of knowledge and continuous development of human capital in the region, which remains a priority for us in the year ahead.”
Accelerating the future of finance
DIFC is today home to some of the biggest names in the financial services industry, working side by side with start-ups and entrepreneurs with a vision of being the leaders of tomorrow. In 2018, among the firms that joined our thriving community were Al Ahli Bank of Kuwait, Berkshire Hathaway Specialty Insurance, Middle East Venture Partners, and State Street Global Advisors.
The aviation financing sector in particular has gathered momentum in 2018, with firms utilising flexible structure solutions such as special purpose companies and vehicles. As a result, an increased number of sector-related companies are operating in the Centre, which stood at 25 firms as at the end of 2018 doubling from 13 in 2017. This momentum was driven by the projected growth of aviation in the MEASA region, as well as the rising importance of aircraft financing as an alternative asset class. DIFC is the only jurisdiction in the MEASA region to offer such a diverse collection of carefully considered aviation clients.
The DIFC FinTech ecosystem has also demonstrated remarkable growth over the course of 2018, fostering a dynamic community of over 80 sector-related companies, 35 of which are active registered companies in the fields of FinTech, InsurTech and RegTech.
The Centre has also expanded its international partner network into 11 global FinTech hubs, including New York, London, Hong Kong, Kuala Lumpur, Singapore, and Mumbai, and hosted the sixth annual International Finance Corporation (IFC) FinTech CEO Summit, which was the first edition to be held outside the IFC’s Washington D.C. headquarters. The Summit gathered close to 200 of the world’s leading CEOs and innovators in the world of FinTech in Dubai.
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