Dubai has transformed from a global player in the international property investment market into a regional financial and blockchain investment hub with eye-watering speed. The Dubai International Financial Centre (DIFC) lies at the heart of much of this change but what exactly does it do?
From the trillion-dollar hedge fund to the stock market app on your phone, the DIFC has a hand in making the smartest investments possible in a region already famous for its business intelligence.
A Short History of the Dubai International Financial Centre
The DIFC is one of the most influential financial centers in the region. For the last 20 years, it has provided the innovation-focused legal framework and independent regulatory function that has made the city such a sought-after destination for FinTech and venture capital investors.
More than a centre of business activity, the DIFC is a special economic zone covering 272 acres of land and has its own court system and laws outside of the UAE legal system. The laws are written in English for maximum transparency and are based on English common law practice.
Foreign investors hesitant to establish their business in the UAE due to concerns about language and legal barriers have flocked to the DIFC as a result and the centre is now home to over 36,000 professionals and more than 4,300 registered companies in the FinTech and investment space.
Today it has, by far, the largest concentration of industry talent in the region and the centre's services cater to business interests not only in the MEASA (Middle East, Africa, and South Asia) region but far beyond into the Americas and Europe as well.
The centre even has its own shopping experience, art galleries, fine dining, and leisure options that make it not only a place to work but to unwind as well!
The Main Functions and Purpose of the Financial Centre
Companies use the DIFC to access the vast wealth of resources offered by the centre, including tax incentives, professional expertise, and access to international capital markets.
The DIFC also offers a wide variety of services to companies looking to establish themselves in the region. This includes incorporation services, fast-track immigration, inward investment visas, and various government incentives.
The business-friendly environment of the economic zone and of the Dubai authorities make the DIFC not only an attractive destination for companies looking to do business in the Middle East but by far the premium choice among a host of other regional options.
FinTech Hive at DIFC
In 2017 the DIFC announced the launch of the ‘FinTech Hive at DIFC’. The Hive is an accelerator programme providing mentorship and networking opportunities for innovators in the FinTech space to connect with financial, banking, and corporate service providers who work with the DIFC.
Most importantly, the transparent legal underpinning provided by the centre gives international investors a guarantee of security that is essential to the conduct of business on a global scale.
What kind of companies use the Dubai International Financial Centre?
The range of businesses is diverse, with a variety of companies from different sectors that goes far beyond pure FinTech. This includes, but is not limited to, tech startups, investment firms, private equity firms, and asset managers.
The DIFC is currently home to 25 of the world's top 30 banking institutions, five out of ten of the world's top asset managers, and five of the top ten insurance providers.
Some notable players currently operating successfully in the centre include the gas and industry technology giant, Air Liquide Middle East & India Holding Limited, the UK global real estate investing platform BentallGreenOak Advisors LLP, and the internationally renowned Thunderbird School of Global Management.
This is a major financial hub for companies of all sizes from large banks to tech startups and with its access to world-class financial markets, range of services, and strong digital infrastructure, the DIFC has become the premier destination for companies looking to take advantage of the Middle East's financial opportunities.
The future is bright and includes everyone
The vision of the DIFC, steered by His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, His Excellency Essa Kazim, Governor of DIFC, and Arif Amiri, Chief Executive Officer of DIFC Authority, is inclusive for companies and investors of every size.
2022 was a year of incredible growth for the DIFC with the FinTech sector taking the lead. Employment at the centre was the fastest ever year on year with an annual increase of 22%, the most commercial space leased in a single year ever, and combined revenues exceeding AED 1 billion for the first time.
The future looks bright for the DIFC and participating in this growth is easier than ever. With stock market investment apps for the retail investor readily available at your fingertips there is no reason to be left behind as the Gulf region forges ahead on the global investment stage.
