Dubai: Dubai International Financial Centre (DIFC) achieved strong financial performance with net profit increasing by 25 per cent to $99 million in 2017 from $79 million in 2016, excluding $412 million of fair value gain on Investment properties.
The Centre also achieved sustained growth of its financial community with the total number of registered companies from all over the world rising by 12 per cent to 1,853.
“As a top ten ranked international financial centre, DIFC is a true reflection of the success story of Dubai. The emirate is a global example of economic diversification and the financial services sector remains one of the most significant contributors to Dubai’s GDP. Today, the Centre is the leading financial hub in MEASA [Middle East Africa and South Asia] and is constantly exploring new opportunities to ensure the development of the regional financial services landscape,” Shaikh Maktoum Bin Mohammad Bin Rashid Al Maktoum, Deputy Ruler of Dubai and President of DIFC, said in a statement.
Presenting the operating review of the DIFC for last year Eisa Kazim, Chairman of DIFC Authority Board of Directors and Governor of DIFC, said in 2017, DIFC made notable progress towards the delivery of its 2024 growth strategy, which aims to increase the number of active financial firms to 1,000 and the combined workforce of DIFC-registered companies to 50,000.
“DIFC’s financial services sector grew to 473 firms, and the Centre’s workforce increased to 22,338 professionals. During the same period, an additional 384,200 square feet of space was leased, with DIFC properties maintaining a 99 per cent of occupancy rate,” said Kazim.
DIFC reported a total of 315 new registrations in 2017, representing an average of 26 new registrations per month. The geographic representation in DIFC remained broadly similar year-on-year, with 36 per cent originating from the Middle East, 33 per cent from Europe, 11 per cent from Asia, 10 per cent from the United States, and 10 per cent from other countries.
DIFC continued to see growth from the registered Chinese financial institutions, which accounted for 22 per cent of total assets booked in the Centre as at the end of the third quarter of 2017. The total value of these assets reached $33.4 billion, a 30.5 per cent increase from $25.6 billion reported in year-end 2016. DIFC is also home to China’s four largest banks in terms of total assets; Bank of China, Agricultural Bank of China, ICBC and China Construction Bank Corporation.
In 2017, DIFC’s combined revenue was $221 million at a similar level of 2016. DIFC’s total assets grew to $3.55 billion, an increase of 15 per cent compared to $3.08 billion in 2016. During the same period, DIFC’s operating profit, excluding Fair Value (FV) gain on Investment properties, grew by 8 per cent to $140 million compared to $130 million in 2016.
“2017 was another record year for DIFC. Not only did we strengthen our position as MEASA’s leading financial centre, but we also continued to actively support the development of regional economies. We are committed to shaping the future of financial services in the region, and we continue to support Dubai’s role as an essential component of the global financial system. Today, we remain on course to achieve the goal we set in 2014 of tripling the scale of DIFC by 2024,” said Kazim.
DIFC has increased its commitment to FinTech. In 2018 the Centre has launched two new programmes, focusing on RegTech and InsurTech, in addition to the existing Fintech Hive at DIFC. The InsurTech will focus on start-ups that specialise in finding technological solutions for insurance companies, while RegTech will focus on companies specialised in issues pertaining to regulation.
