According to Arif Amiri, CEO of the Dubai International Financial Centre (DIFC) Authority, the center now accounts for around 5% of the nominal GDP of the emirate of Dubai and has emerged as a significant economic development engine for Dubai and the UAE.
“The centre is the largest in the area for wealth and asset management, with more than 250 businesses managing assets worth more than $450 B and more than 100 foreign funds operating locally,” said Amiri in an interview with Emirates News Agency (WAM).
According to projections, the financial services industry in the nation exceeds 13% of the nominal GDP of the emirate of Dubai in 2021 from financial firms operating out of DIFC, he continued. According to him, the centre is currently one of the most significant financial hubs in the world and the region’s leading financial hub for the Middle East, Africa, and South Asia (MEASA), which is made up of more than 72 countries and has a population of about 3 billion people and an estimated GDP of US$8 T.
Amiri emphasized that DIFC is one of the most technologically-advanced financial centres in the world, in addition to being the largest financial system in the region. The centre has maintained its top ranking among global financial centres, with Dubai ranking first in the Middle East and among the top 20 globally on the Global Financial Centres Index for 2022.
In addition to the 4,031 companies registered there, he noted that DIFC is home to 17 of the top 20 banks in the world, 25 of the top 30 banks in terms of systemic importance globally, 5 of the top 10 insurance companies, 5 of the top 10 asset management companies, as well as numerous other top law and consulting firms on a global scale.
In addition to the abundance of innovative offers and the depth of its administrative system, according to Amiri, DIFC also benefits from a cutting-edge operating environment and legal and regulatory frameworks that are in line with the best international standards. These factors helped the centre attract 1252 related companies with a focus on finance and innovation, while the first half of last year saw an increase in the number of financial technology companies.
The strategic position of the centre, he added, facilitates access to burgeoning wealth in the MEASA region’s rapidly expanding markets for wealth and asset managers. The CEO of DIFC Authority stated that by launching initiatives that are consistent with its strategy for the year 2030, the centre will continue to play a pioneering role in defining the parameters of the sector and will do so at an unprecedented rate by luring new businesses and talents to the centre’s exceptional system.
He stated that a number of things contributed to the success of the centre, including the introduction of initiatives for financial technology and innovation, the creation of laws and regulatory frameworks, and efforts to forge effective and influential economic thought patterns with counterparts from other financial centres around the world.
Amiri stated that the successful tours and promotions DIFC carried out in the US, which attracted senior executives from more than 100 top American financial services and technology businesses, helped to draw attention to the excellent investment prospects in Dubai. In addition, a number of important clients and partners were met in Istanbul as part of the centre’s promotional trip of Turkey.
Amiri clarified that in addition to assisting new clients, DIFC works with its current clients to take advantage of greater prospects in the area. “The past year witnessed a number of clients seeking to upgrade their work licences at the centre, including Societe Generale Bank and Al Ahli Bank of Kuwait,” he added, according to The Zawaya. The CEO of DIFC Authority emphasised that the centre introduced and updated existing laws and regulations to strengthen its leadership position, which included incorporating amendments to the data protection law to ensure that its regulatory framework is compatible with the best international practices.
When asked about the most prominent international companies and institutions that have recently joined DIFC, Amiri mentioned Tarabut Gateway, the first UAE-based platform fully authorized by the Dubai Financial Services Authority (DFSA) for Open Finance activities; KMMRCE Holdings, a leading Dubai-based digital-first technology provider; Oneglobal Broking, a specialist international broking company; and ADIB Capital for Wealth and Asset Management.
Amiri noted that DIFC signed several agreements and Memorandums of Understanding (MoU) last year, including one with the UAE Central Bank to support efforts to develop and expand the country’s financial technology sector, as well as the Open Finance Lab initiative, the first of its kind in the region, and the signing of the “India-UAE Startup Bridge” agreement. He also stated that the “Artificial Intelligence (AI) and Coding licence” was introduced in order to encourage more enterprises to establish a presence in DIFC.
