Dubai: The Dubai International Financial Centre (DIFC) yesterday said its sub-economy that jumped 47.1 per cent in 2008 to $2.8 billion (Dh10.2 billion), accounts for 3.4 per cent of Dubai's GDP of Dh302 billion ($82 billion).
"The growth reflects the substantial expansion of banking, financial and related activities in DIFC in 2008 and the large influx of new companies that were attracted by the region's growth prospects, which remain strong despite the global financial crisis," DIFC said in a statement.
"Calculated according to the ‘value-added' of the DIFC sub-economy, the GDP of $2.8 billion accounts for 3.4 per cent of Dubai's GDP of Dh302 billion."
Data for the survey was obtained from questionnaires answered by 404 of the 715 companies registered in the financial district in 2008.
Ahmad Humaid Al Tayer, Governor of DIFC, said: "DIFC's achievements represent the success of the UAE's dynamic econ-omic diversification programmes that have been guided by the vision of President His Highness Shaikh Khalifa Bin Zayed Al Nahyan, and His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.
"The 2008 GDP figures validate the significant impact that DIFC is having on the development of both Dubai and the UAE."
Abdullah Mohammad Al Awar, CEO of the DIFC Authority said: "DIFC has become a significant catalyst of economic growth in Dubai and the UAE. In 2008, the range of banking and financial services and expertise delivered out of DIFC expanded significantly. During that year, DIFC's financial services cluster also played a key role in supporting and promoting investments in other sectors."
Apart from its direct contribution to the GDP, the DIFC sub-economy also had a significant ‘multiplier effect' on the economy.
Dr Nasser Al Saidi, Chief Economist of the DIFC Authority, said: "DIFC's contribution to the economy of Dubai goes beyond the value added, produced within the borders of the financial district. Members of the DIFC community boost demand for both basic and luxury goods and services in the UAE by spending in sectors like travel and tourism, education, health care, real estate, retail, lifestyle and hospitality. As their earnings tend to be in the top brackets, the stimulus to the economy from their spending is substantial."
