DUBAI: The Dubai International Financial Centre (DIFC) saw 34% growth in new registrations last year, helped by demand from companies in a broader range of sectors and new industries such as fintech, boosting the city’s status as the Gulf financial hub.
DIFC posted a net profit of $203 million in 2023, up about 45% year on year, while combined revenue rose 23% to $352 million, it said on Thursday.
The total number of active companies stood at 5,523 at the end of 2023.
“The overall growth of companies has been supported by both financial and innovation companies and non-financial companies,” DIFC Governor Essa Kazim told reporters.
There is increasing competition among Gulf states to develop their financial sectors as part of economic diversification, with the likes of Abu Dhabi, Riyadh and Doha bolstering investment in their own financial centres.
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Kazim said he was not concerned about competition from Saudi Arabia, the Arab world’s largest economy, or others when it came to attracting companies, and that economic growth across the region meant the pipeline was growing bigger for everyone.
A quick post-COVID economic rebound, neutral political stance, and ease of doing business have boosted the UAE’s appeal among businesses and wealthy individuals in recent years amid global economic uncertainties and growing geopolitical risks.
“We anticipate demand to remain strong. This is nder-pinned by limited supply entering the market and strong demand from international occupiers looking to set up in the region, such as banks and wealth managers,” said Adam Wynne, co-head of Industrial and Logistics UAE at Knight Frank consultancy in Dubai.
A rising number of Asia-based wealth managers and family offices are setting up shop in Dubai, and Chinese asset managers have also applied for licences to operate in the city.
Demand from hedge funds to set up in DIFC is significant, with growth of 124% last year and strong interest from Britain, Europe and the United States, Kazim said.
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