DIFC continues to drive the future of finance with outstanding H1 2024 results

Government of Dubai Media Office – 30 July 2024: The Dubai International Financial Centre (DIFC), the leading global financial centre in the Middle East, Africa and South Asia (MEASA) region, today announced outstanding results for the first half of 2024. Coinciding with its 20th anniversary, the results reinforce DIFC’s growing role in driving the future of finance, and reaffirm Dubai’s position as a top global ecosystem for innovation and business growth.

His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance of the UAE and President of DIFC, said: "DIFC’s exceptional performance in the first half of 2024 reflects the comprehensive development vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. Over the past two decades, DIFC’s commitment to innovation, excellence, and strategic growth has not only shaped Dubai's reputation as a major global financial centre but also contributed to the UAE’s sustainable growth and the economic development of the region.”

“By fostering a robust financial ecosystem, attracting top-tier talent and institutions, and establishing strong networks of global cooperation, DIFC has opened new growth avenues, positioning Dubai as a key focal point for international finance and commerce. Consistent with the goals of the Dubai Economic Agenda D33 to establish the city as one of the world’s top three urban economies and double its GDP over the next decade, we will continue to expand and diversify the financial services community in DIFC. We are also steadfast in our commitment to driving the growth of emerging sectors and advanced financial technologies. Over the coming years, we seek to further enhance DIFC’s industry ecosystem to meet the evolving needs of the global economy and enable businesses, entrepreneurs and investors to tap promising new opportunities," His Highness added.

20 years of driving growth

The number of active registered companies in DIFC exceeded 6,000 for the first time, increasing from 4,949 to 6,153 year-on-year, representing 24 per cent growth. A total of 820 new companies also joined DIFC in the first six months, a record 24 per cent increase from the same period last year. Reflecting the Centre’s focus on FinTech and Innovation, firms in these sectors grew from 811 to 1,081, up 33 per cent year-on-year. DIFC companies continue to attract talent from across the world and created 4,647 new jobs during the last 12 months. The total workforce now stands at 43,787, an increase of 12 per cent from the first half of last year.

DIFC is home to the largest cluster of financial firms in the region and outperforms the market for growth. Over 370 wealth and asset management firms, including more than 50 pure play hedge funds are now based in the Centre, originating primarily from the GCC, Europe, UK and the US. Assets Under Management in DIFC have increased from USD 444bn to USD 700bn, an increase of 58 per cent. The number of funds being marketed in or from DIFC has advanced to 10,032, increasing from 7,641 - a substantial 31 per cent increase. The insurance and reinsurance sector now includes 125 companies, up from 110 which represents 14 per cent growth. During the first half of 2024, it was confirmed that 2023 Gross Written Premiums for the insurance sector reached USD 2.6bn, rising from USD 2.1bn, an increase of 24 per cent.

Occupancy levels for DIFC owned and managed properties remained high at 99.6 per cent. Third party commercial office space occupancy stands at 89 per cent. To address the high demand for A-grade, LEED certified commercial premises, DIFC will bring another 1.6mn sq. ft. of commercial space to market over the next three years. The expansion further highlights DIFC’s growth plans and premium urban real estate ambitions, creating capacity that caters to the demand from wealth and asset management firms, family offices, insurance and re-insurance companies, innovation firms, and the banking and capital markets sector.

fDI Intelligence data identified DIFC as the number one free zone in the world for greenfield FDI projects, which totalled 116 and were valued at USD 481mn in 2023. Since 2021, the number of projects has increased by 53 per cent.

His Excellency Essa Kazim, Governor of DIFC, commented: “Aligning with the Dubai Economic Agenda D33, DIFC continues to showcase unparalleled growth, cementing its position as the leading global financial centre in the region. Coinciding with the Centre’s 20th anniversary, DIFC’s achievements ensure the financial services industry continues to increase its contribution to the economy. We remain laser-focused on delivering DIFC’s Strategy 2030 by driving growth and shaping the future of finance which will be achieved by keeping innovation at the top of our agenda.”

Arif Amiri, Chief Executive Officer of DIFC Authority, said: “DIFC’s consistently strong performance over the last 20 years, including the first half of 2024, solidifies our prominence as the number one financial centre in the Middle East, Africa and South Asia. The Centre is now home to more than 6,000 companies and close to 44,000 professionals. This significant scale provides DIFC and its clients with an unrivalled opportunity to collectively drive the future of finance across the region.”

20 years of attracting industry leading firms

DIFC’s 20-year track record as the region’s leading global financial centre continues to help attract significant new client names from the financial services industry. The recent influx of firms include Africa Speciality Risks, AllianceBernstein, Audere Capital Limited, Banca Del Sempione Ltd, Balyasny Asset Management, Baring Asset Management, Blue Owl Capital, Capital Asset Management, Carrhae Capital, El Dorado Capital Limited, Exodus Point, GID Investment Advisors LLC, Hayfin, Lone Star Europe Acquisitions, Novia Global Limited, Ominvest Capital (DIFC) Limited, Patient Square Capital, Point72 (DIFC), Revolut, State Street Global Advisors, Taula Capital Management (DIFC) Limited and Theia Investments Limited.

20 years of driving the future of innovation

The recently launched Dubai AI Campus at the DIFC Innovation Hub will support the Centre’s next phase of growth by accelerating AI adoption across all industries. This DIFC-led initiative, inaugurated by His Highness Sheikh Hamdan bin Mohammad bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister and Minister of Defence of the UAE, Chairman of The Executive Council of Dubai and Chairman of the Higher Committee for Future Technology and Digital Economy, is the first initiative under the Dubai Universal Blueprint for Artificial Intelligence (DUB.AI) launched in May.

The Dubai AI Campus offers dedicated co-working spaces to tech start-ups, including AI businesses, of which 75 businesses are already operating from the 10,000 sq. ft. phase one of the campus. Phase two, which will see the campus expand to more than 100,000 sq. ft., is set to attract 500 companies and create 3,000 jobs by 2028.

DIFC introduced some of the world’s most innovative laws to bring further confidence and market certainty to both FinTech and digital asset classes. Most recently, this included the world’s first Digital Assets Law.

20 years of nurturing family businesses

Reflecting two decades of supporting the sector, more than 600 active entities are affiliated with family businesses in DIFC. This includes over 120 of the world’s wealthiest families and individuals with a total net worth exceeding USD 1.2 trillion.

Underscoring its pivotal role in shaping the landscape of family wealth, the DIFC Family Wealth Centre celebrated its first anniversary. DIFC-based foundations grew substantially to 548, an increase of 55 per cent year-on-year. To support further growth in the family business sector, DIFC introduced a new comprehensive guide ‘Prosperity Across Generations: Unlocking the power of DIFC for families’ to empower families with access to knowledge and expertise on structures, governance, wealth management, succession and estate planning in Dubai.

20 years of investing in the future of real estate

Properties owned and managed by DIFC continue to be in high demand. As a result, over 1.6mn sq. ft. of commercial space is being developed over the next three years. Aligned with DIFC’s track-record of bringing premium and sustainable real estate to market, new buildings will be constructed to LEED certification standards.

To address immediate demand, over 200,000 sq. ft. was added in Q1 2024 when DIFC Innovation One opened its doors to the future of FinTech and Innovation firms.

DIFC Living & Innovation Two, a 590,000 sq. ft. development which includes DIFC’s first residential project, has 203,000 sq. ft. of commercial space. The project is on track for handover in Q3 2026.

In May, ground was broken on Immersive Tower by DIFC, which will provide 630,000 sq. ft. commercial space in Q2 2027.

Most recently, the Centre also broke ground on DIFC Square in June, a landmark development and commercial project comprising of three interconnected buildings, with handover scheduled for Q1 2026. DIFC Square will offer 607,000 sq. ft. of commercial space.

As part of the Centre’s ongoing commitment to strengthen connectivity and ease-of-mobility for its community, DIFC also opened its air-conditioned 116 metres-long Link Bridge. The Link Bridge connects the main areas of the Centre allowing for greater ease of access between DIFC’s hotspots, including Central Park Towers, Innovation One, and Gate Avenue.

20 years of industry development

DIFC has commemorated two decades of excellence with a series of initiatives that will contribute to the development of the local, regional, and global finance industry. This kicked off with the Dubai World Insurance Congress, which attracted 1,300 delegates from over 70 countries. The second edition of the Dubai FinTech Summit followed and welcomed over 8,000 delegates from 118 countries. Recognising unprecedented opportunities for growth and innovation, 50 agreements were signed with global financial leaders during the Summit. DIFC also welcomed close to 200 hedge fund decision makers from across the world for the inaugural Hedge Fund Middle East Summit.

DIFC’s Sustainable Finance Catalyst, which was launched during COP28, was recognised as the Sustainable Finance Initiative of the Year by Finance Middle East Awards 2024. Demonstrating progress made by DIFC on sustainability, Dubai continues to advance its position as the region’s leading green finance centre in the Z/Yen Green Financial Centre Index rankings.