The Dubai International Financial Centre (DIFC) has reported its best annual performance to date, with increases posted across a range of metrics.
In 2021, the financial hub recorded 996 company registrations, the highest ever figure for a single year and a 36 percent increase from 2020. The growth in company numbers is also more than triple the average number across the last decade, UAE state-news agency WAM reported.
The number of active registered firms in DIFC also increased to 3,644, a 25 percent jump from 2,919 in 2020. DIFC also said that 1,124 financial and innovation related entities are now active and operating within the centre, a 23 percent increase over 2020.
Dubai’s financial hub reported its highest ever annual revenue and operating profit in 2021, with revenue hitting AED897m, 16 percent up from AED774m in 2020, and 7 percent up from 2019’s pre-pandemic AED838m. Operating profit, meanwhile, reached AED573m, 26 percent up from AED457m in 2020, and 13 percent up from AED510m in 2019. DIFC assets also crossed AED14.8bn ($4bn) for the first time.
“DIFC’s best-ever annual performance reflects Dubai’s position at the forefront of global recovery in the financial sector and the broader economy,” Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, Deputy Prime Minister, Minister of Finance and President of the Dubai International Financial Centre, said, according to WAM.
“The Centre’s ability to continue building a thriving financial community amidst a rapidly changing international environment demonstrates the far-reaching vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, which has enabled the emirate to create a strong economy fuelled by innovation,” he added.
DIFC as a global hub
Dubai’s financial hub is home to 17 of the world’s top 20 banks, 25 of the world’s systemically important banks, five of the top 10 insurance companies, and five of the top 10 asset managers. In 2021, the centre also added a significant number of fintech and innovation firms to its ranks, with numbers of these companies increasing to 503 from 303 in 2020.
“DIFC’s exceptional results are also a testament to the trust that local, regional and global businesses have placed in the Centre as a financial industry hub that promotes growth and business enterprise. DIFC’s continued success has also been driven by the solid and enduring partnerships Dubai has built with leading global financial companies by providing them the high-quality hard and soft infrastructure needed to raise their competitiveness in an evolving industry,” His Highness added.
Firms that joined DIFC in 2021 included: Air Liquide Middle East & India Holding Limited, BentallGreenOak Advisors (UK) LLP, DP World Financial Services, Dual Corporate Risks Limited, General Reinsurance AG, Howden Insurance Brokers Limited, Hines, Mamopay, Richemont and Thunderbird Global Innovation Center.
“Dubai’s economy rebounded more quickly than many global economies following the impact of the Covid-19 pandemic. DIFC has helped drive this new phase of growth and we are proud to be a significant contributor to Dubai’s GDP. Our focus in 2022 will be on driving the future economy by attracting more financial sector investment into the UAE,” DIFC Governor Essa Kazim (pictured above) said.
“DIFC had an exceptional 2021 and delivered its 2024 Strategy growth targets three years ahead of schedule. The performance was impressive for any financial centre against the current global macroeconomic environment. We expect DIFC’s approach will help Dubai continue to build its reputation as a hub for technology and innovation, as well as allow us to further differentiate ourselves as the region’s leading global financial centre,” Arif Amiri, CEO of DIFC Authority added.
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