Dubai: Establishment of DIFC marked the transformation of UAE as a leading global financial services hub

The establishment of Dubai International Financial Centre (DIFC) in 2004 marked the beginning of the transformation of the UAE into one of the leading global financial centres. The DIFC was launched in accordance with United Arab Emirates (UAE) Federal Decree No. 35 of 2004 as a part of Dubai’s strategic vision to diversify its economic resources and attract capital and investments in the region.

DIFC is a special economic zone in Dubai covering 272 acres, established in 2004 and a financial hub for the Middle East, Africa and South Asia (MEASA) markets. The DIFC has a 16-year track record of facilitating trade and investment flows across the region, connecting local markets with the economies of Asia, Europe and the Americas.

DIFC has its own independent, internationally recognised regulator, the Dubai Financial Services Authority (DFSA). The DFSA supervises regulated companies and monitors their compliance with applicable laws and rules.

DIFC has its own independent judicial system. Operating within a common law framework, DIFC Courts ensures the highest international standards of legal procedure and dispute resolution. The DIFC Courts acts as an independent administrator of justice for resolving all civil and commercial laws. DIFC’s unique legal and regulatory framework is based on international standards and principles of common law that is tailored to the region’s unique needs.

DIFC is the region’s largest financial ecosystem. Reaffirming Dubai’s growing reputation across the global finance industry, the number of new firms operating in DIFC grew 20 per cent in 2020, taking the total to 2,919. A total of 915 financial services companies are now active in DIFC, up 24 per cent from 735 in 2019.

2020 marked DIFC’s best ever annual performance in its history, coincided with the country’s 50th anniversary year, also reflect the UAE’s and Dubai’s ability to partner with its business communities to facilitate continued growth despite the most challenging conditions in the global economy.

The DIFC today comprises of a variety of world-renowned retail and dining venues, a dynamic art and culture scene, residential apartments, hotels and public spaces, DIFC continues to be one of Dubai’s most sought-after business and lifestyle destinations.

The DIFC’s vision is to drive the future of finance. Today, it offers one of the region’s most comprehensive FinTech and venture capital environments, including cost-effective licensing solutions, fit-for-purpose regulation, innovative accelerator programmes, and funding for growth-stage start-ups.

In 2020, total banking assets booked in DIFC increased 6 per cent to $189 billion. An additional $64 billion of lending was also arranged by DIFC firms in 2020. DIFC based wealth and asset management portfolio managers invested $203.5 billion, up by 106 per cent, from $99 billion in 2019, with the industry now worth $528.5 billion. DIFC’s operating profit was $125 million last year, broadly consistent with the prior year despite global economic headwinds.

DIFC’s commitment to driving the future of finance has delivered tremendous growth in the FinTech and Innovation sector. The number of FinTech and Innovation firms in DIFC almost doubled in 2020 and has tripled in the last two years.

Dubai International Financial Centre (DIFC) was officially launched with a grand opening on November 12, 2005.

Construction work in 2005.