DIFC Sees Number of Active Companies Surpass 6,000 for the First Time

DIFC’s 20th Anniversary Results Highlight Its Role in Shaping the Future of Finance

Coinciding with its 20th anniversary, the Dubai International Financial Centre (DIFC), a Middle East-focused financial hub, has reported milestone results for the first half of 2024. These results reinforce DIFC’s growing role in driving the future of finance and reaffirm Dubai’s position as a top global ecosystem for innovation and business growth.

His Highness 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: “DIFC’s exceptional performance in the first half of 2024 reflects the comprehensive development vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. 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 nurturing a robust financial ecosystem, drawing top-tier talent and institutions, and building strong global networks, DIFC has created new growth opportunities, establishing Dubai as a central hub for international finance and commerce. Aligned with the Dubai Economic Agenda D33’s objective to position the city among the top three global urban economies and double its GDP over the next decade, we will continue to expand and diversify DIFC’s financial services community. Our commitment remains firm in advancing emerging sectors and cutting-edge financial technologies. In the years ahead, we aim to further enhance DIFC’s industry ecosystem to address the evolving demands of the global economy and provide businesses, entrepreneurs, and investors with new promising opportunities.”

20 Years of Driving Growth

The number of active registered companies in DIFC surpassed 6,000 for the first time, rising from 4,949 to 6,153, marking a 24 percent increase year-on-year. In the first half of the year alone, 820 new companies joined DIFC, representing a record 24 percent growth compared to the same period last year. Reflecting the Centre’s emphasis on FinTech and Innovation, companies in these sectors grew from 811 to 1,081, a 33 percent increase year-on-year. DIFC continues to attract global talent, creating 4,647 new jobs over the past 12 months, bringing the total workforce to 43,787, a 12 percent rise from the first half of the previous year.

DIFC boasts the largest cluster of financial firms in the region and consistently outperforms market growth expectations. The Centre is home to over 370 wealth and asset management firms, including more than 50 pure play hedge funds, with firms predominantly from the GCC, Europe, the UK, and the US. Assets Under Management in DIFC have surged from $444 billion to $700 billion, marking a 58 percent increase. The number of funds marketed in or from DIFC has grown to 10,032, up from 7,641, a substantial 31 percent rise. The insurance and reinsurance sector now includes 125 companies, up from 110, representing a 14 percent growth. Additionally, Gross Written Premiums for the insurance sector reached $2.6 billion in 2023, up from $2.1 billion, a 24 percent increase.

Occupancy rates for DIFC-owned and managed properties remain high at 99.6 percent, while third-party commercial office space occupancy stands at 89 percent. To meet the high demand for A-grade, LEED-certified commercial premises, DIFC plans to introduce an additional 1.6 million square feet of commercial space over the next three years. This expansion underscores DIFC’s growth strategy and its focus on premium urban real estate, catering to the needs of wealth and asset management firms, family offices, insurance and reinsurance companies, innovation firms, and the banking and capital markets sector.

Top in Greenfield FDI Projects

According to fDI Intelligence data, DIFC was ranked as the top free zone in the world for greenfield FDI projects, with a total of 116 projects valued at $481 million in 2023. Since 2021, the number of such projects has increased by 53%.

His Excellency Essa Kazim, Governor of DIFC, remarked: “In alignment with the Dubai Economic Agenda D33, DIFC continues to demonstrate exceptional growth, reinforcing its status as the leading global financial centre in the region. On the occasion of the Centre’s 20th anniversary, DIFC’s accomplishments ensure that the financial services industry further enhances its contribution to the economy. We remain committed to achieving DIFC’s Strategy 2030 by driving growth and shaping the future of finance, with innovation remaining at the forefront of our agenda.”

Arif Amiri, Chief Executive Officer of DIFC Authority, stated: “DIFC’s strong performance over the past 20 years, including the first half of 2024, reinforces our position as the top financial centre in the Middle East, Africa, and South Asia. With over 6,000 companies and nearly 44,000 professionals based here, DIFC offers unparalleled opportunities for driving the future of finance across the region.”

Attracting Big New Financial Services Clients

DIFC’s 20-year legacy as the region’s premier global financial centre continues to attract major new clients from the financial services industry. Recent additions include Africa Specialty Risks, AllianceBernstein, Audere Capital Limited, Banca Del Sempione Ltd, Balyasny Asset Management, Baring Asset Management, Blue Owl Capital, Capital Asset Management, Carrhae Capital, El Dorado Capital Limited, Exodus Point, GID Investment Advisors LLC, Hayfin, Lone Star Europe Acquisitions, Novia Global Limited, Ominvest Capital (DIFC) Limited, Patient Square Capital, Point72 (DIFC), Revolut, State Street Global Advisors, Taula Capital Management (DIFC) Limited, and Theia Investments Limited.

The newly launched Dubai AI Campus at the DIFC Innovation Hub is set to support the Centre’s next growth phase by accelerating AI adoption across various industries. This DIFC-led initiative, inaugurated by His Highness Sheikh Hamdan bin Mohammad bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister and Minister of Defence of the UAE, Chairman of The Executive Council of Dubai, and Chairman of the Higher Committee for Future Technology and Digital Economy, is the first initiative under the Dubai Universal Blueprint for Artificial Intelligence (DUB.AI), which was unveiled in May.

The Dubai AI Campus provides dedicated co-working spaces for tech start-ups, including AI businesses. Currently, 75 businesses are operating from the 10,000 sq. ft. phase one of the campus. Phase two will expand the campus to over 100,000 sq. ft., aiming to attract 500 companies and create 3,000 jobs by 2028.

DIFC has introduced some of the world’s most innovative regulations to enhance confidence and market certainty in both FinTech and digital asset classes, including the world’s first Digital Assets Law.

20 Years of Nurturing Family Businesses

Celebrating two decades of supporting the sector, DIFC now has over 600 active entities affiliated with family businesses, including more than 120 of the world’s wealthiest families and individuals, with a total net worth exceeding $1.2 trillion.

Highlighting its role in shaping family wealth, the DIFC Family Wealth Centre marked its first anniversary. The number of DIFC-based foundations grew significantly to 548, reflecting a 55% year-on-year increase. To further support the family business sector, DIFC has introduced a comprehensive guide, ‘Prosperity Across Generations: Unlocking the Power of DIFC for Families,’ which provides families with valuable insights on structures, governance, wealth management, succession, and estate planning in Dubai.

20 Years of Investing in the Future of Real Estate

Properties managed and owned by DIFC remain highly sought after. To meet this demand, DIFC is developing over 1.6 million sq. ft. of commercial space over the next three years. Consistent with its track record of offering premium and sustainable real estate, new buildings will adhere to LEED certification standards.

In response to immediate demand, over 200,000 sq. ft. of space was added in Q1 2024 with the opening of DIFC Innovation One, designed for FinTech and innovation firms. DIFC Living & Innovation Two, a 590,000 sq. ft. development including DIFC’s first residential project, features 203,000 sq. ft. of commercial space and is expected to be completed by Q3 2026. Ground was broken in May on Immersive Tower, which will provide 630,000 sq. ft. of commercial space, scheduled for Q2 2027.

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

As part of its ongoing efforts to enhance connectivity and mobility for its community, DIFC has unveiled its new 116-meter-long air-conditioned Link Bridge. This bridge connects key areas within the Centre, providing improved access between DIFC’s major landmarks, including Central Park Towers, Innovation One, and Gate Avenue.

20 Years of Industry Development

DIFC has marked two decades of excellence with a series of initiatives aimed at advancing the local, regional, and global finance industries. The celebrations began with the Dubai World Insurance Congress, drawing 1,300 delegates from over 70 countries. This was followed by the second edition of the Dubai FinTech Summit, which attracted more than 8,000 delegates from 118 countries. The Summit saw 50 agreements signed with global financial leaders, underscoring the event’s significance for growth and innovation. Additionally, DIFC hosted nearly 200 hedge fund decision-makers from around the world for the inaugural Hedge Fund Middle East Summit.

DIFC’s Sustainable Finance Catalyst, launched during COP28, was honored as the Sustainable Finance Initiative of the Year by the Finance Middle East Awards 2024. Reflecting DIFC’s progress in sustainability, Dubai continues to strengthen its position as the region’s leading green finance center, as recognized in the Z/Yen Green Financial Centre Index rankings.