DIFC’s H1 results show 23% rise in companies joining financial centre

Image: Dubai Media Office

The Dubai International Financial Centre (DIFC) witnessed double-digit growth in the first half of 2023, with 661 new entities registering during the period in the centre, as per state news agency WAM.

The total number of companies operating in DIFC rose from 4,031 to 4,949 at the end of June 2023, a year-on-year increase of 23 per cent.

DIFC said its performance underscored its role in growing the finance industry in the region as well as in raising Dubai’s status as a leading growth catalyst for financial institutions, FinTech firms, and innovation companies in the region.

Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance and President of DIFC, said, “DIFC’s exceptional performance in H1 2023 once again demonstrates the strength of the ecosystem it offers for investment, innovation and enterprise to flourish in the financial industry. DIFC has not only propelled Dubai’s development into a pre-eminent global financial hub but also helped create new spirals of growth in the wider region.

“As the emirate enters a new phase of growth with the implementation of the Dubai Economic Agenda D33, DIFC will be a vital contributor to the emirate’s efforts to open new horizons of sustainable development and unlock the potential of advanced financial technologies.”

I reviewed @difc first half of 2023 results, which recorded exceptional growth. The total number of companies operating in DIFC rose to 4,949 (an increase of 23%) & the number of fintech companies reached 811 companies (an increase of 35 per cent). The centre fosters 1,443 companies in… pic.twitter.com/iQaMyM5KqF

— Maktoum Bin Mohammed (@MaktoumMohammed) August 1, 2023

DIFC as a finance and innovation hub

The number of firms in DIFC’s FinTech and Innovation sectors grew from 599 to 811, a 35 per cent growth year-on-year. DIFC’s community of 811 FinTech and Innovation firms represents the largest cluster of its kind in the region.

Additionally, during the first half of 2023, DIFC hosted 632 financially regulated firms, the number surpassing 600 for the first time. New firms that registered with DIFC in 2023 include Asia Research and Capital Management, Edmond de Rothschild, EnTrust Global, Hudson Bay Capital, King Street Capital, Nomura Singapore, St. James’s Place, and Verition Fund Management.

The growth in registered companies has led to a surge in jobs created by the financial centre. The total number of employees based in DIFC grew by 3,057 to reach 39,140, up 20 per cent year-on-year. The growth supports the goals of DIFC’s 2030 Strategy, to strengthen Dubai’s position as a global hub for talent.

The first six months of the year saw high demand for commercial space. DIFC leased over 233,000 square feet of owned and managed commercial space. The centre said its occupancy rates stood at 99 per cent for the first half of the year.

Essa Kazim, Governor of DIFC, said DIFC plays a pivotal role in driving Dubai’s economic growth in line with the Centre’s Strategy 2030 and the Dubai Economic Agenda (D33). “Dubai’s official global leader status will help DIFC differentiate our position with international finance and business communities, ensuring we can continue to advance our contribution to the economy,” he added.

The centre recently announced the ‘Dubai AI and Web 3.0 Campus’. Aimed at creating the largest cluster of artificial intelligence (AI) and tech companies in the region, the campus hopes to bring in over $300m in collective funds, house over 500 global AI and Web 3.0 start-ups, and create over 3,000 jobs by 2028, as per the centre’s quarterly report.

To support innovation and growth in the region, DIFC’s Innovation Hub introduced its venture-building platform, DIFC Launchpad. The DIFC Launchpad expects to support the launch of more than 200 new ventures in Dubai, create over 8,000 jobs and attract over Dhs2bn in venture capital.

Arif Amiri, chief executive officer of DIFC Authority, said, “DIFC’s tremendous success in the first half of 2023 continues to illustrate how we are shaping the future of finance. Our unwavering commitment to growth has yielded outstanding results, with client attraction and expansion leading to a remarkable increase in job creation, bolstering the international workforce in DIFC. This achievement reinforces DIFC and Dubai’s prominence as a global destination for top-tier talent as we continue to deliver to our Strategy 2030.”

DIFC’s work to support Family Offices

DIFC said its work to advance its ecosystem to help families manage their wealth included the new DIFC Family Arrangements Regulations 2023 which were developed to help DIFC-based family offices grow and manage their wealth efficiently.

DIFC also launched the global DIFC Family Wealth Centre. The first such office in the world, the centre provides tailored services to support family businesses in their journey to preserve and grow their legacies across generations and geographies.

The initiative aligns with the Dubai Government’s commitment to supporting family businesses, which continue to play a prominent role in accelerating the growth of Dubai’s economy.

Path to COP28

Ahead of the COP28 in November and December 2023, DIFC established a Path to COP28 programme for the global finance community. In partnership with the Global Ethical Finance Initiative (GEFI), the programme continues to bring the global finance community together to address climate change.

Key activities held as part of this programme included industry roundtables, summits, and an education programme organised through the DIFC Academy.

The Dubai Sustainable Finance Working Group (DSFWG), chaired and powered by DIFC, has published reports to help companies bring a structured approach to delivering net zero, ESG innovation, and sustainability-linked lending.