Establishing Dubai as a prestigious global financial destination
Dubai International Financial Center records strong growth in the first half of 2022
The Dubai International Financial Center, the leading financial center in the Middle East, Africa and South Asia, continued to record strong growth in the first half of 2022, paving the way for achieving the objectives of the DIFC 2030 strategy to advance the future of the financial services sector and consolidate Dubai's position as a global destination for financial institutions and companies Fintech and innovation companies, as well as enhancing the center's contribution to Dubai's GDP.
The total number of registered and active companies in the DIFC has grown, with 537 new companies joining the DIFC system in the first half of 2022, an increase of 11% to date.
This brings the total number of companies registered in the center from 3,297 to 4,031 companies by the end of June 2022, an increase of 22% year-on-year. The region's most diversified, while this growth was accompanied by an increase in the demand for commercial spaces in the center.
long-term vision
On this occasion, His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai and President of the Dubai International Financial Centre, said: "The DIFC's continued achievement of strong growth rates, despite the exceptional circumstances the global economy is going through, translates the long-term vision of His Highness. Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, may God protect him, when His Highness directed, about twenty years ago, the establishment of a financial center in Dubai, and His Highness’s continuous directives to enhance the competitiveness of the center among the best in the world. The first of this year, as a new testimony to Dubai’s ability to maintain growth in a rapidly evolving international environment, while growth is supported by a strong, stable and sustainable economy based on knowledge and innovation.”
His Highness added: "The Dubai International Financial Center has established an ideal platform for major international financial companies, as well as promising pioneering projects in the field of innovation and strongly emerging financial technologies. The Emirate and the interests of the partners The continued expansion of the DIFC community demonstrates the extent of the confidence it has among the major international financial institutions in its capabilities and in the exceptional opportunities it provides for expansion and growth.The DIFC will continue to build fruitful and long-term partnerships with financial companies from around the world And providing it with the necessary infrastructure and support to enhance its stability, increase its competitiveness, and pave the way for further growth and excellence.”
strong growth indicators
With an operational environment, industry-leading legal and regulatory frameworks, an abundance of innovative offerings and a depth of management ecosystem, the DIFC is now home to 1,252 financial and innovation-related firms, a 22% increase over the same period in 2021. The first six months witnessed From 2022, the number of financial technology companies and innovation companies registered in the center has increased to 599 compared to 406 companies, achieving an increase of 23% on an annual basis.
The list of new clients included Tarabut Gateway, the first open banking platform licensed by the Dubai Financial Services Authority;
KMMMRCE Holdings, a leading provider of digital technology solutions headquartered in Dubai;
Oneglobal Broking, a leader in the insurance sector;
Abu Dhabi Islamic Capital for Wealth and Asset Management, in addition to
His Excellency Essa Kazim, Governor of the Dubai International Financial Center, said: “As we look forward to broader growth prospects, the ambitious steps taken by Dubai, and specifically the DIFC, to push the future of the financial sector towards new heights, will contribute to creating a wide range of quality opportunities for companies. In addition, these remarkable results will pave the way for continued economic growth in the region and the world, thus enhancing our competitiveness and consolidating Dubai's position as a global center for financial services, financial technology and innovation."
For his part, Arif Amiri, Chief Executive Officer of the DIFC Authority, said: “The DIFC has, over the years, played an influential role in shaping the financial sector in the region. During the first half of this year, the center continued its pioneering role in defining the parameters of the region’s financial sector. The sector by launching initiatives in line with its 2030 strategy, which contributed to attracting new business and talents to our exceptional system at an unprecedented pace.Our successes have been based on several factors, including launching financial technology and innovation initiatives, developing laws and regulatory frameworks, and working on creating patterns of economic thought. Influential and effective with our counterparts around the world, which will allow our partners and customers to move towards a prosperous future for the financial sector, and support the aspirations of the UAE with an innovative economic system.”
DIFC is a driving force for innovation
The Dubai International Financial Center continues to lead the way in financial technology and innovation.
Last June, the center hosted FinTech Week, the region's largest gathering of fintech innovators, leading investment firms, banks, decision makers, and financial services firms. The objectives of the meeting focused on accelerating the adoption of next-generation technology solutions across the FinTech sector.
Driven by its keenness to boost the growth of FinTech companies and support innovation in the region, the Dubai International Financial Center has expanded its innovation hub offerings, by launching an incubator of “enterprise studios” and funding opportunities worth $100 million through the Venture Investment Fund. ".
Following the memorandum of understanding signed between the Central Bank of the United Arab Emirates and the Dubai International Financial Center Authority in support of the efforts to develop and prosper the financial technology sector in the UAE, the Dubai International Financial Center revealed the first of its kind Open Finance Lab initiative in the region.
The lab will serve as an umbrella platform for banks, fintech companies, regulators, and financial sector stakeholders.
It will be able to unleash the next wave of growth for the sector, enhance consumer protection, support financial inclusion initiatives, and enhance social benefits and economic opportunity.
During the first half of this year, an agreement was signed to "bridging startups between the UAE and India", and an artificial intelligence and programming license was launched to urge more companies to establish a presence in the Dubai International Financial Center.
The Dubai International Financial Center revealed a plan to expand the scope of the “Dubai Government Employees Provident Fund” to include foreign Dubai government employees, in support of the center’s vision to develop the future of the financial sector in the region by restructuring the end-of-service benefits plan for employees working in the Dubai International Financial Center in line with International Standards for Retirement Savings.
A catalyst for economic growth and customer business
The Dubai International Financial Center is the region's largest destination for financial services and related businesses.
It is estimated that the center will contribute about 5% of the value of the nominal GDP of the Emirate of Dubai during 2021, while the contribution of financial companies operating from the Dubai International Financial Center in the financial services sector in the United Arab Emirates exceeds 13%, making the center of the financial services sector in the United Arab Emirates more than 13%. Dubai International Finance is a major driver of economic growth in Dubai and the UAE.
Of the 4,031 registered companies, the DIFC is home to 17 out of the top 20 banks in the world, 25 out of the top 30 banks of systemic importance globally, 5 out of the top 10 insurance companies, and 5 out of the top 10 Asset management firms, among others, many of the world's leading law firms and advisory firms.
In addition to supporting new clients, the DIFC is collaborating with its existing clients to seize further opportunities in the region.
The year 2022 witnessed a number of clients seeking to upgrade their license to work in the center, including Societe Generale Bank, which is one of the most prominent financial groups in Europe;
and Al Ahli Bank of Kuwait, which is considered one of the leading banks in the region.
Best-in-class business empowerment platform
The Dubai International Financial Center has introduced and updated applicable laws and regulations, with the aim of strengthening its position as the leading financial center in the Middle East, Africa and South Asia region.
The list of amendments that occurred to the laws and regulations of the Dubai International Financial Center during the first half of this year included the incorporation of amendments to the data protection law that ensured that its regulatory framework was compatible with international best practices.
The law supports the continuity of technological and innovative progress while ensuring that companies operating in the Dubai International Financial Center and those dealing with them provide maximum protection for individuals' data.
The new data protection law is currently undergoing final assessment at the DIFC in line with UK privacy laws, a partnership that will provide practical solutions to the complex issues involved in cross-border data exchange.
The Dubai International Financial Center also highlighted promising investment opportunities in Dubai by organizing a successful tour and roadshows in the United States of America, which saw the attendance of senior executives from more than 100 leading American financial services and technology companies.
In addition, the center's promotional tour in Turkey included holding a series of strategic meetings with clients and key partners in Istanbul, as part of a move aimed at building strong partnerships with companies there.
At the level of the Middle East, the Dubai International Financial Center organized a roadshow of great importance in the Egyptian capital, Cairo, which was attended by 89 companies and entrepreneurs.
The tour reviewed the role of the Emirate of Dubai and the Dubai International Financial Center in providing support and assistance to family businesses to upgrade their institutional and financial system, seize the opportunities available in the market, and employ and adopt modern digital technologies.
The center held an important discussion session in Tel Aviv, Israel, with about 30 potential clients, where a wide range of business fields within the financial services sector and future cooperation opportunities were reviewed, especially in the field of financial technology.
The Dubai International Financial Center issued a working paper entitled "The Future of Financial Centers" that focuses on how financial centers around the world address the important issues currently facing society. The paper reveals the 2030 vision of financial centers.
This came in cooperation with the World Alliance of International Financial Centers (WAIFC) and the consulting group Z/Yen.
Through this paper, the Center has contributed by putting forward many important and pioneering recommendations.
The Dubai International Financial Center chairs the Dubai Sustainable Finance Working Group, which was established in 2019 with the aim of creating a leading sustainable financial center in the region.
During the current year, the group announced the formation of four sub-working groups with the aim of developing specialized reports and tools for the sector to enhance awareness of environmental, social and corporate governance standards and contribute to expanding the adoption of these standards in Dubai and the region in general.
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