DIFC adds 309 new firms in 2015

Essa Kazim, DIFC Governor

Dubai International Financial Centre, or DIFC, welcomed 309 new companies in 2015, up almost 28 per cent from the year before, with growth among financial services firms surging by 13 per cent. 
Announcing another record year in 2015, DIFC said on Wednesday that the number of new company registrations last year was the highest achieved in a single year to date. 

The size of the total workforce employed within DIFC also grew up to 19,808, an 11 per cent increase compared with last year and around 40 per cent of the overall target DIFC has set as part of its 2024 growth strategy.
 The growth is in line with DIFC's plans to increase the number of domiciled financial firms from 362 in 2014 to 1,000 in 2024 and boost assets under management from $17.4 billion to $250 billion. The global financial services hub also seeks to double the amount of leased space from 2.5 million sq ft in 2014 to 5.5 million sq ft in 2024, with its workforce projected to reach 50,000 as per its 2024 strategy
 Essa Kazim, DIFC Governor, said the centre passed a number of significant landmarks in 2015. "Although we had a very good year in 2014, last year exceeded our expectations, in line with our strategy to triple our numbers by 2024."
 He said the size and diversity of DIFC client portfolio continues to expand alongside its evolution from an international financial centre into a global financial hub. "As far is our finance is concerned, we are in an extremely strong position after issuing our own sukuk. We have a strong cash position in excess of $368 million. Our EBIDTA is still in line with our expectations and ranging from $120 million to $150 million," Kazim said at a media briefing. Currently, DIFC-owned properties within the development are 99 per cent occupied, while third party developments have an occupancy rate of 67 per cent. Around 1,445 active registered firms now operate within DIFC, compared with 1,225 firms at the end of 2014, an increase of 18 per cent recording the highest number since DIFC inception.
Among active registered firms, financial services account for 408 firms while the non-financial services sector is made up of 835 companies. Some of the new entrants included insurance firm Lloyd's of London, Lebanese lender BankMed, Philippines' BDO Unibank, law firm Bae, Kim and Lee and lender Shinhan Bank from South Korea and Access Bank UK, a subsidiary of Nigeria's Access Bank.
 In 2015, DIFC continued to expand its retail offering, adding 18 retailers (a year-on-year increase of 11 per cent). An additional 335,600 square feet of office space was leased, 19 per cent more new office than in 2014, DIFC governor said.
  Kazim said DIFC's interest in China is in line with its 2024 strategy. We have been in talks with two other Chinese banks that are in the process of being licensed at DIFC. Our top four Chinese banks have upgraded their licences Category 1 licence. From a representative bank, these banks are now branches. Furthermore, they have been expanding in terms of their asset accumulation. In the last 18 months, the Chinese banks in the DIFC have doubled their balance sheet to in excess of $20 billion between them. Such growth demonstrates great numbers in terms of asset accumulation."
 He said DIFC's retail project is well underway. In 2016, investment in the retail project will be approximately Dh300-350 million and financing for Gate Village 11 will be around Dh150 million
 "We have just about completed the design documentation and it is going into construction tender in the next few months. And we expect the completion of the project by end of 2017," he said.
 On competition from Abu Dhabi Global Market, the governor said:  "It has always been our position that (the two financial centres) are complementing each other. The UAE government's focus on diversifying the economy away from oil is really commendable. In my opinion, one of the most promising growth sectors is the financial services sector. By complementing the two Centres, we can create a scale to position the UAE to become a strategic hub for financial activity."
 "When we launched DIFC in 2004, the contribution of Dubai's financial sector to the total GDP stood approximately at 5.5 percent. Today, it is exceeding 12 per cent," said the governor.
 In line with Dubai's 'Smart City' initiative, DIFC launched a fully-integrated client portal in 2015, said Arif Amiri, CEO of DIFC Authority.
In 2015, during GITEX, DIFC signed an MOU with its telecommunication partner du to reduce the global costs of telecommunications and improve efficiencies for our clients in the DIFC. "We are pleased to inform you that our costs are now discounted up to 50 per cent, which is benchmarked against international telecommunication costs standards, said Amiri.
- issacjohn@khaleejtiems.com