Over the years, the Dubai International Financial Centre (DIFC) has charted new growth avenues by fostering a robust financial ecosystem, attracting top talent and engaging in global collaborations. Consistent with the Dubai Economic Agenda (D33) goals to establish the city as one of the world’s top three urban economies and double its GDP over the next decade, DIFC aims to continue expanding and diversifying the financial services community. The Centre provides unrivalled access to the region’s competitive and globally connected markets, along with deep pools of talent and expertise.
DIFC’s 20-year track record as the region’s leading global financial centre continues to attract significant new client names from the financial services industry. A sustained focus on innovation and technological progress, along with groundbreaking regulations such as the world’s first Digital Asset Law, has enabled fintech organisations to set up their businesses confidently. “Our conducive business environment and world-class infrastructure further lend credibility and stability to our business proposition,” said Arif Amiri, CEO of DIFC Authority, in an exclusive interview. “Our strategic location attracts talented entrepreneurs, encourages collaboration and provides global connectivity—a gateway between the East and the West, and a true convergence point for global markets.”
DIFC is home to the region’s largest cluster of financial firms and outperforms the market for growth. In the first six months of 2024, the number of active registered companies in DIFC exceeded 6,000 for the first time, with 820 new companies joining the Centre during this period. Firms in the fintech and innovation sectors grew from 811 to 1,081, up 33% year-on-year. The total workforce now stands at 43,787, up 12% from the first half of last year.
Over 370 wealth and asset management firms, including more than 50 pure-play hedge funds, are now based in the Centre, originating primarily from the GCC, Europe, the UK and the US. Assets under management (AUM) in DIFC have increased from $444 billion to $700 billion, reflecting a 58% surge. The number of funds being marketed in or from DIFC has advanced to 10,032, up from 7,641—an increase of 31%.
“DIFC has bolstered its position as MEASA’s top financial centre for wealth and asset management companies looking to access vast pools of wealth in Dubai, the UAE and the wider region,” noted Amiri. “We are committed to driving innovation through the growth of emerging financial technologies to deepen the financial sector. Over the coming years, we aim to further enhance DIFC’s ecosystem to meet the evolving needs of businesses and the global economy.”
Emphasising its position in the global financial landscape, fDI Intelligence data identified DIFC as the number one free zone in the world for greenfield FDI projects, which totalled 116 and were valued at $481 million in 2023.
DIFC’s 20-year track record of strategic growth has supported businesses operating out of the region, elevating Dubai’s position as a global financial centre and driving sustainable growth for the UAE. In addition to fostering a robust financial ecosystem, the Centre is spearheading the growth of emerging sectors and advanced financial technologies.
DIFC’s Strategy 2030 aims to double the size of the Centre and substantially increase its contribution to Dubai’s GDP, aligning with the Dubai Economic Agenda. “We are on track to achieve this growth, with more than 6,000 active businesses and nearly 44,000 employees registered at the Centre in the first half of 2024,” stressed Amiri.
In the near term, we seek to further develop DIFC’s ecosystem to cater to the growing needs of the global economy.
Arif Amiri, CEO of DIFC Authority
Home to fintechs in the region
DIFC is an internationally recognised financial hub, playing an increasingly pivotal role in shaping the fintech movement globally. The Centre has invested in developing its fintech ecosystem by ensuring a supportive and agile regulatory framework, providing access to funding, sandbox environments, and state-of-the-art infrastructure for startups and established companies.
Initiatives such as the Dubai Fintech Summit also offer opportunities for collaboration between traditional financial institutions and fintech firms, especially with rapid AI advancements driving innovation within the sector. “Our visionary leadership has always enabled Dubai and DIFC to take a leading role in driving the future of finance and innovation, enabling us to create the most comprehensive proposition for our clients,” noted Amiri. “Under the DIFC Innovation Hub, we have numerous success stories from the many accelerator programmes we have initiated, such as the FinTech Accelerator Programme, AccelerateHer and the Metaverse Accelerator Programme, in addition to the Dubai AI Campus.”
These initiatives provide startups with mentorship opportunities and access to investors. To date, DIFC has welcomed more than 1,000 fintech companies, marking a significant contribution towards the D33 Agenda.
Family businesses
Today, more than 600 active entities affiliated with family businesses operate in DIFC under the DIFC Family Wealth Centre (DFWC). This includes over 120 of the world’s wealthiest families and individuals with a total net worth exceeding $1.2 trillion. “This year, DFWC celebrated its first anniversary and to further support family businesses, DIFC launched a new comprehensive guide titled ‘Prosperity Across Generations: Unlocking the Power of DIFC for Families’ to empower families with access to knowledge and expertise on structures, governance, wealth management, succession and estate planning in Dubai,” DIFC chief stated. To further support families on their legacy planning journey, DFWC, in collaboration with M/HQ, has produced a thorough guide on DIFC Foundations as a wealth and estate planning tool. Recognising Dubai’s significance as a global centre for family wealth, the Centre’s impactful initiatives underscore its commitment to fostering prosperity and security for generations to come.
DFWC acts as a platform that enables family businesses to preserve their legacy. It offers compliance accreditation in areas such as ESG practices and corporate governance, among others. It also provides access to a trusted network of certified family business experts, including advisors and consultants specialising in succession planning, legal affairs, international taxation, sustainability and ESG, learning and leadership, and dispute resolution.
The next five years
DIFC’s strategic goals are linked to Strategy 2030, which aims to transition the region’s leading financial Centre to a global centre of excellence for business and innovation. “In the coming years, we expect DIFC to double in size, as well as double its economic contribution to Dubai’s GDP,” explained Amiri. “The Centre will continue to support companies in fast-tracking their expansion and growth. We remain focused on driving the future of finance by nurturing innovation and technology in a robust ecosystem, supported by the most progressive legal and regulatory environment.”
Speaking about AI, Amiri stressed that DIFC recognises the critical role of AI in driving transformational impact, which paved the way for the launch of the Dubai AI Campus cluster in May this year. “This cutting-edge hub is driving AI adoption by building a thriving ecosystem for AI businesses in the region,” he added. “It is expected to become the largest cluster of AI and tech companies in the MENA region, which will help establish Dubai as a global hub for the digital economy, in line with the objectives set out in the D33 Agenda.”
The cluster is a key phase of the annual Dubai Universal Blueprint for Artificial Intelligence and currently hosts more than 75 registered businesses. Once completed, the cluster will encompass 100,000 sq. ft., attract more than 500 companies and over $300 million in capital, and create more than 3,000 jobs by 2028. This cluster will provide world-class infrastructure for AI companies, collaborative spaces for global talent, superior government services, and accelerator programmes, positioning Dubai as a global hub for AI governance and legislation.
By 2033, Dubai seeks to consolidate its position among the top three global cities. The Dubai Economic Agenda envisions 100 transformative projects, Dh25.6 trillion ($6.97 billion) in foreign trade, and connectivity with 400 cities as key trading partners, elevating transportation and construction projects. These plans seek to create a stable financial market, a globally connected business ecosystem, an efficient workforce, and a world-class infrastructure to support economic growth. DIFC is strongly positioned to align with these objectives.
“As the world enters a new era in sustainable finance, asset owners are showing an increased appetite for strategies that incorporate ESG, as governments, companies and investors progressively turn to innovative financing solutions to mitigate global challenges,” noted Amiri. “By driving meaningful and actionable solutions, we are driving the transformation needed for a sustainable future.”
One such innovative solution is the DIFC’s innovative Digital Assets Law, which addresses practical considerations in the digital assets space, such as how interested parties may control, transfer and deal with digital assets. The law provides much-needed clarity and transparency on the mechanics surrounding smart contracts, digital currencies and trading for such assets.
The Digital Assets Law is the first legislative enactment to comprehensively set out the legal characteristics of digital assets as a matter of property law and to provide for how digital assets may be controlled, transferred and dealt with by interested parties. “The new law brings market confidence to businesses in fintech and digital asset classes, while reflecting the Centre’s commitment to maintaining a transparent and efficient legal and regulatory framework in line with global best practices,” he stressed.
The legislative enactments ensure that DIFC laws align with the rapid pace of international trade and financial markets arising from technological developments, and provide legal certainty for investors in, and users of, digital assets.
Arif Amiri, CEO of DIFC Authority
DIFC’s strategic initiatives and regulatory advancements position it as a global leader in finance and innovation. With a clear focus on expanding its ecosystem, fostering technological growth and aligning with Dubai’s broader economic goals, DIFC is set to play a critical role in driving the future of the financial industry and contributing significantly to Dubai’s economic landscape. As it continues to attract businesses, talent and investment, the DIFC remains a central pillar in Dubai’s ambition to solidify its place among the world’s top financial hubs.