Dubai International Financial Centre (DIFC) on Tuesday reported its best annual performance in its 16-year history with the number of new firms growing by 20 percent in 2020, taking the total to 2,919.
Reaffirming Dubai’s growing reputation across the global finance industry, a total of 915 financial companies are now active in DIFC, up 24 percent from 735 in 2019 while the number of businesses in the fintech and innovation ecosystem more than doubled with 189 joining in 2020, taking the total to 303.
The DIFC workforce rose 4 percent to 26,773 while the market size of DIFC-based activities grew to $784 billion, an increase of 12 percent from the previous year
“This represents substantial progress on DIFC’s 2024 vision and strategy to drive the future of finance. The wide range of new clients further contributes to the breadth and depth of DIFC, underscoring the solid foundations that the centre has been built on,” a statement said.
It added that business sectors across DIFC achieved “exponential” growth, including banking, capital markets, wealth and asset management, fintech and professional services.
Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai and president of DIFC said: “DIFC’s best ever annual performance in its history, achieved in the country’s 50th anniversary year, also reflect the UAE’s and Dubai’s ability to partner with its business communities to facilitate continued growth despite the most challenging conditions we have seen in the international economy.”
“Furthermore, the expansion across the centre’s business sectors validates Dubai’s unyielding focus on diversification, innovation and value addition and its deep commitment to providing a supportive environment for businesses across the spectrum – from the world’s largest financial institutions to local entrepreneurs.
“The remarkable growth in 2020 enhances the diversity and sophistication of DIFC’s financial ecosystem, further raising Dubai’s status as a major focal point for global finance and a growth multiplier for the industry,” Sheikh Maktoum added.
His comments come as Saudi Arabia is increasing pressure on international firms to shift their Middle East hubs to the kingdom.
Starting on January 1, 2024, the Saudi government and state-backed institutions will stop signing contracts with foreign companies that base their Middle East headquarters in any other country in the region in a move intended to limit “economic leakage” and boost job creation.
The decision is the latest measure designed to encourage firms to beef up their presence in Saudi Arabia’s capital of Riyadh, supporting a broader plan to diversify the economy of the world’s largest crude exporter.
Notable financial services firms opening headquarters and regional offices in DIFC in 2020 included TATA Asset Management, Samba Financial Group, Caixabank and AfricaRe. FinTechs included global and regional names such as Ebury, Ripple, Adyen, KoFax Me and Tabby.
In 2020, total banking assets booked in DIFC increased 6 percent to $189 billion while an additional $64 billion of lending was also arranged by DIFC firms.
DIFC’s operating profit was $125 million, broadly consistent with the prior year despite global economic headwinds, the statement said.
Essa Kazim (pictured above), governor of DIFC, said: “During 2020, we have delivered exceptional growth across all business sectors, which reflects the confidence the global finance industry holds in DIFC. During 2021 we will continue to demonstrate resilience following the Covid-19 pandemic, are well-positioned to make further progress on our key 2024 priorities and will contribute further to Dubai’s long term economic growth.”
Arif Amiri, CEO of DIFC Authority, added: “DIFC’s commitment to driving the future of finance has delivered tremendous growth in the fintech and innovation sector. This is an area where we will continue to lead the way in the region given the industry is accelerating its implementation of technologies, recognising strategies and operating models need to change in a post pandemic world.”
DIFC also continues to be a magnet for some of the world’s finest restaurants, fashion boutiques, home-grown brands and galleries.
DIFC, encompassing Gate District and Gate Village, raised its profile as a vibrant business and leisure community, with its retail and dining venues growing to 351 including 90 new retailers that joined in 2020.
In 2020, DIFC also welcomed more than 20 fine dining restaurants and gourmet concepts, including Clap Restaurant, L’Atelier de Joel Robuchon, Cé La Vi, Hutong and The Arts Club, the first international outpost of the renowned private members establishment established in London. DIFC also launched a new urban dining destination, the South Market in Gate Avenue.
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