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DIFC continues to drive future of finance with outstanding H1 2024 results

Number of active registered companies exceed 6,000 for the first time

The number of active registered companies in the Dubai International Financial Centre (DIFC) exceeded 6,000 for the first time in the first half of 2024, increasing from 4,949 to 6,153 year-on-year, representing 24 percent growth, data showed on Wednesday.

A total of 820 new companies also joined DIFC in the first six months, a record 24 percent 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 percent 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 percent from the first half of last year.

The above data were revealed as the centre released its results for the first half of 2024.

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: “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. 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.”

DIFC is home to the largest cluster of financial firms in the region and outperforms the market in terms of 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 US$444 billion to $700 billion, an increase of 58 percent. The number of funds being marketed in or from DIFC has advanced to 10,032, increasing from 7,641 - a substantial 31 percent increase. The insurance and reinsurance sector now includes 125 companies, up from 110 which represents 14 percent growth. During the first half of 2024, it was confirmed that 2023 Gross Written Premiums for the insurance sector reached $2.6 billion, rising from $2.1 billion, an increase of 24 percent.

Occupancy levels for DIFC owned and managed properties remained high at 99.6 percent. Third-party commercial office space occupancy stands at 89 percent. To address the high demand for A-grade, LEED-certified commercial premises, DIFC will bring another 1.6 million 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 reinsurance 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 $481 million in 2023. Since 2021, the number of projects has increased by 53 percent.

Essa Kazim, governor of DIFC, said: “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, said: “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.”

DIFC’s 20-year track record as the region’s leading global financial centre continues to help attract significant new client names from the financial services industry.

The recently launched Dubai AI Campus at the DIFC Innovation Hub will support the Centre’s next phase of growth by accelerating AI adoption across all industries. The Dubai AI Campus offers dedicated co-working spaces to tech start-ups, including AI businesses, of which 75 businesses are already operating from the 10,000 sq. ft. phase one of the campus. Phase two, which will see the campus expand to more than 100,000 sq. ft., is set to attract 500 companies and create 3,000 jobs by 2028.

DIFC introduced some of the world’s most innovative laws to bring further confidence and market certainty to both FinTech and digital asset classes. Most recently, this included the world’s first Digital Assets Law.

Reflecting two decades of supporting the sector, more than 600 active entities are affiliated with family businesses in DIFC. This includes over 120 of the world’s wealthiest families and individuals with a total net worth exceeding $1.2 trillion.

Properties owned and managed by DIFC continue to be in high demand. As a result, over 1.6 million sq. ft. of commercial space is being developed over the next three years. Aligned with DIFC’s track-record of bringing premium and sustainable real estate to market, new buildings will be constructed to LEED certification standards.

To address immediate demand, over 200,000 sq. ft. was added in Q1 2024 when DIFC Innovation One opened its doors to the future of FinTech and Innovation firms.

DIFC Living & Innovation Two, a 590,000 sq. ft. development which includes DIFC’s first residential project, has 203,000 sq. ft. of commercial space. The project is on track for handover in Q3 2026.In May, ground was broken on Immersive Tower by DIFC, which will provide 630,000 sq. ft. commercial space in Q2 2027.

Most recently, the Centre also broke ground on DIFC Square in June, a landmark development and commercial project comprising three interconnected buildings, with the handover scheduled for Q1 2026. DIFC Square will offer 607,000 sq. ft. of commercial space.