DIFC posts robust growth in H1

 

Dubai / WAM

Dubai International Financial Centre (DIFC), has recorded strong growth in H1, 2016, becoming the number one financial centre in the Middle East and Africa, with 143 new companies licensed, including 39 leading financial firms.
The DIFC has registered significant growth in workforce to over 21,000 professionals across more than 1,500 firms and continued infrastructure development including launch of Gate Avenue at DIFC.
The results were characterised by developments in the following areas: Growth in new companies and enhancing client ecosystem; Job creation and workforce; Infrastructure development; International outreach and partnerships; Building DIFC as a financial technology hub and community building and engagement.
DIFC Governor, Essa Kazim, said, “Dubai and DIFC serve as the gateway to the world’s fastest growing markets across the MEASA region. This is reflected in our latest results and initiatives, which represent a major milestone in delivering on the centre’s forward-looking 2024 strategy.”
“We continue to invest in building our world-class ecosystem, and are committed to creating an environment that enables our clients to take advantage of new opportunities that arise in the region,” he added.
Newly registered firms included companies taking the highest category licenses, such as HSBC, which announced moving its Middle East Headquarters and US$40 billion of assets to the centre. The first six months also saw reputable regional banks join the DIFC, including Ahli United Bank Limited and Bank of Palestine, which set up its first overseas operation. In other key sectors, the centre welcomed its first Indian reinsurance firm, HDFC International Life and Re Company Limited, to its portfolio, along with leading Kuwaiti asset management firm, KAMCO Investment Company Limited, which established its first international office in DIFC.
The 1,539 active firms in the centre are now made up of a record 425 financial services firms (an increase of 11 percent on this time last year), 914 non-financial firms (a 22 percent increase on this time last year) and 192 retailers (2 percent increase on this time last year), taking a further 81,300 square feet of leased space. Occupancy rates remain extremely high representing the ongoing demand for DIFC space and in retail, the new Gate Avenue at DIFC project will significantly increase the size of the centre’s retail portfolio.
These global firms come from around the world with 33 percent from the Middle East region, 18 percent from the EU, 15 percent from the UK, 12 percent from the US, 12 percent from Asia and a further 10 percent from elsewhere in the world.
DIFC surpassed 21,000 employees working in the centre’s firms, an important landmark as the centre looks to target 50,000 employees by 2024, meaning 42 percent of the target has been met. Some 21,076 employees, an increase of 14 percent or over 2,500 new professionals, from this time last year, now work in the centre.
The launch of Gate Avenue at DIFC, a retail development will link up all the centre’s areas through 660,000 square feet of premium retail space hosting over 150 exclusive dining, shopping and leisure attractions. Set for completion at the end of 2017, the project represents the centre becoming a premium lifestyle destination and a new concept of urban development in the region.
The infrastructure was further developed by the addition of a number of real estate offerings. The joint venture between Investment Corporation of Dubai (ICD) and Brookfield Property Partners broke ground on its $1billion development in DIFC in January. The 282 metre-high, 54-storey ICD Brookfield Place tower will contain more than 900,000 square feet of Grade A office space and connect to a 150,000 square feet, 5-storey retail centre.
In March, luxury hotel chain Four Seasons opened its second property in Dubai, an eight-storey hotel located in DIFC’s Gate Village, featuring 106 rooms and suites. In addition, strong construction progress has been made on Gate Village Building 11. Across a total built-up area of 200,000 square feet, the premises will offer 160,000 square feet (82 percent) of office space and nearly 40,000 square feet (18 percent) for retail and F&B outlets.
At the same time, DIFC signed an important agreement with DEWA’s Etihad ESCO, to replace nearly 30,000 LED light-bulbs in order to drive 72 percent energy savings over the next six years.
In line with the centre’s 2024 strategy, focused on facilitating business transactions, trade and investments across the South-South corridor, DIFC leadership undertook a number of highly successful roadshows to international markets, such as China, India, Singapore as well as London and Luxembourg.
In addition, DIFC now has over 90 memoranda of understanding (MoUs) in place with jurisdictions in the region and around the world, including the recently signed strategic partnership agreement between DIFC and Dubai Economic Council (DEC), which mandates the two entities to share best practices in the areas of financial studies, economics, research and corporate governance.
The rest of 2016 and the next year will focus on DIFC’s growth strategy and leverage the momentum of the previous first half. This includes continuing to build up the centre’s client base, developing new synergies and growth in its target sectors.