In a new milestone that reflects the success of the emirate's ambitious business approach to the highest global leadership in various fields, Dubai ranked eighth among the most important financial centers in the world, according to the World Financial Centers Index. With more than 100 centers around the world, four places, ranking 12th in the previous index, is the best since its inception.
His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai and Chairman of the Dubai International Financial Center (DIFC), stressed that Dubai continues to make steady progress towards the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. His Highness praised the good achievements of the Dubai International Financial Center (DIFC), which reinforces his contribution to this ambitious vision and establishes the UAE and Dubai as the premier destination for financial industry in the region.
His Highness said: “Dubai continues to progress steadily and confidently in various indicators of global competitiveness. "We are delighted that the Center will have an influential role at the heart of the development and growth process in which we are taking the lead in the future."
“In line with the vision of His Highness Sheikh Mohammed bin Rashid, we pledge to continue working to support our existing partners and provide additional benefits to attract new partners, in parallel with the continuous development of the capabilities of the Center and its organizational frameworks and services designed to support all our partners with whom we look forward to continuing our success. Together to contribute to the outlines of the future of the global financial industry and to achieve first place.
The DIFC, home to the largest and most advanced financial technology system in the region, is the only financial center in the Middle East, Africa and South Asia that ranks among the top ten rankings in the rankings, placing it among other pivotal global financial centers in London, New York and Hong Kong. Hong Kong and Singapore.
The Dubai International Financial Center (DIFC) has been ranked 12th in the Global Financial Centers Index in its previous edition, confirming its success in achieving continuous progress in the rankings since the launch of the index 12 years ago. The 2007 ranking ranked 25th, and the latest rating reflects Dubai's seven-point increase in the global financial position index compared to the previous index.
“The DIFC has been a pioneer in the financial services industry since its inception in 2004 and has continued to achieve success and strengthen its global position as a major economic powerhouse and pivotal business hub,” said DIFC Governor Issa Kazim.
“The financial sector is one of the main pillars of the UAE's economy, hence the importance of the DIFC as a magnet for foreign investment and a major center of international trade. Accelerating the growth of the financial sector in Dubai is a key priority in line with the 'Fifty Document'. Published by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai in January 2019 to support the national economy.
“Dubai's ranking as one of the top ten global financial centers is a testament to our commitment to our community, stakeholders and global partners. Our continued pursuit of excellence and our focus on technology and innovation have provided an integrated plan for sustainable growth, as we continue to strive for a bright future for the financial sector. The new rating underscores the region's economic potential and Dubai's prominence as a global destination of choice for international institutions, startups and financial technology leaders for partnerships and growth. '
The Global Financial Centers Index report, published semi-annually by the London-based Zin Corporation and the China Development Institute, provides an assessment of competitiveness and a ranking of major global financial centers. The 26th edition of the Global Financial Centers Index ranks more than 114 financial positions based on more than 133 factors. The DIFC has been recognized among all five key factors that the index adopts for evaluation: business environment, human capital, infrastructure, financial sector development, and reputation, which establishes its position as a stable and dynamic financial center offering extensive financial services.
An active business environment
The Dubai International Financial Center (DIFC) has been at the forefront of developing its business environment, which is the number one factor in influencing the global competitiveness of financial centers, and has enhanced its legal and regulatory framework to foster growth opportunities within the Middle East, Africa and South Asia. Based on its leading position in the region, the Center recognized the need to provide greater stability to the institutions and companies running its operations from the Center.
The DIFC's legal and regulatory framework is one of the most sophisticated and supportive governance systems in the region and is in line with the highest international standards and practices. In May 2019, the Dubai Financial Services Authority (DFSA), the independent regulator of the Dubai International Financial Center (DIFC), in collaboration with other financial regulators in the UAE, announced the launch of the new Financial Services Licensing System (Passporting), a regulatory mechanism for the promotion and supervision of investment funds. Foreign companies licensed in financial free zones in other countries are encouraged to enter the domestic market.
The Financial Center unveiled the new Financial Insolvency Law in June 2019, which was issued by His Highness Sheikh Mohammed bin Rashid Al Maktoum with the aim of establishing a more efficient and effective system of restructuring and dealing with cases related to financial default and bankruptcy of the parties involved in the Center. The DIFC then announced the launch of a new, streamlined and more expansive system for registered companies, making the structure and financing of the center faster, more flexible and more cost-effective, as well as contributing significantly to aviation finance and generating significant interest from family businesses. That seek to utilize these structures in succession planning.
In the same month, the DIFC unveiled a new recruitment law that aims to address key issues such as paternity leave, sick leave paid, end-of-service adjustments, etc. to support the workforce at the center, as well as safeguarding and balancing the rights and duties of employers and employees. In line with the global trend in the field of pension funds, the Center has launched the Employee Savings Funds in the Workplace, which will see the development of the end-of-service benefits scheme from a reward-based scheme to a contribution-based scheme as well as a voluntary savings component for employees.
Human capital and talent development
The Dubai International Financial Center (DIFC) has more than 24,000 dedicated employees working in more than 2,200 registered companies, encompassing the largest and most diverse pool of talent in the region. Investment in the development of regional talent continues to be an important factor influencing growth. As part of the Centre's endeavors to support professional development and human capital development, the DIFC Academy provides a world-class financial and legal education system through strategic partnerships with 26 academic institutions and government entities. To date, more than 5,500 graduates of executive education courses and programs in finance, business, law and master's programs in law have graduated.
Strong infrastructure to support sustainable growth
Accessibility, transportation and infrastructure are major strengths of the DIFC and the Emirate of Dubai in general, allowing the Center to expand and diversify its financial services. Dubai's strategic location in the Middle East, Africa and South Asia is another important factor that allows organizations to take advantage of the business opportunities in the region effectively and smoothly.
The financial center witnessed sustained growth during the first half of 2019, receiving more than 250 new companies, bringing the total number of active companies registered to 2,289, an increase of 14% year on year. The Center currently has more than 671 financial sector-related companies, an increase of 11% over the same period last year.
In January 2019, the Dubai International Financial Center (DIFC) reaffirmed Dubai's drive to become a major economic powerhouse in the Middle East by unveiling a new phase of an ambitious expansion project that will see the financial center tripled.
Financial Sector Development
As the leading global financial center in the Middle East, Africa and South Asia, the DIFC is at the forefront of the development of the financial sector. The index highlights the strong presence of international institutions and companies, government support and the diversity of financial sector offerings. The Wealth and Asset Management market at the Center is currently valued at US $ 424 billion, equivalent to approximately 30% of the combined GDP of the GCC, demonstrating the firm financial standing of the DIFC. Key factors that support the center's competitiveness include its focus on fostering financial sector development, investing in innovation and strengthening the financial technology system, as well as continuing efforts to establish fruitful partnerships with leading international accelerator programs.
The DIFC is home to the largest and most sophisticated financial technology system in the region and includes more than 100 international and regional financial technology companies that have chosen DIFC as a preferred destination to expand their business in the region.
The financial center has also witnessed a significant increase in the number of financial technology companies wishing to join their accelerator programs, which are today the first step to test the regional market for many global startups. The third batch of Vintec Hive received 425 applications from startups in the regulatory, Islamic financial, insurance and financial technology sectors, representing a 42% increase over the number of applications registered in the 2018 cycle.
Supported licensing options and access to the US $ 100 million Financial Technology Fund managed by Middle East Venture Partners and Wamda Capital, as well as access to partners and advisory and mentoring services, have created an ideal environment for financial technology companies. Continuing the growth and prosperity, which reinforces Dubai's position as the region's leading financial technology hub that supports building a promising future for the financial sector.
Distinguished reputation
With a reputation for excellence, DIFC has been recognized as the best global financial center to lead the region's finance sector and is a well-established and widely recognized leading center. Innovation and global competitiveness were key factors supporting the center's performance.
Dubai is ranked 7th globally in terms of economic potential of financial technology, according to the FDI Data Services Index of the Financial Times, and one of the top 10 financial technology centers, according to The Banker, also a subsidiary of Britain's Financial Times. . Vintec Hive's ranking as one of the top 25 financial innovation labs affirms DIFC's global position as one of the world's leading business hubs.
In addition, the DIFC retains its position as the preferred destination for doing business, offering a comprehensive lifestyle offering in over 400 restaurants and retail stores, three five-star hotels, seven elite art galleries and over 100 A day of unique arts, culture and wellness events, the DIFC is an ideal destination for the perfect balance between work and modern lifestyle.