The Dubai International Financial Centre (DIFC) experienced remarkable growth in the first half of 2023, witnessing a significant 23% year-on-year increase with 661 new entities registering during this period.
This impressive performance solidifies DIFC’s position as a leading influence in shaping the future of finance and reinforces Dubai’s status as a thriving growth catalyst for financial institutions, FinTech firms, and innovation companies in the region.
By June 2023, the total number of companies operating within DIFC rose to 4,949, showing a remarkable year-on-year increase of 23%. Notably, the FinTech and Innovation sectors witnessed exceptional growth, expanding by 35% from 599 to 811 firms, further establishing DIFC’s global reputation as a hub for these sectors.
With a remarkable 15% year-on-year growth, DIFC is now home to 1,443 financial and innovation-related companies. This growth in registered companies has also led to a significant increase in job creation, with the total number of employees based in DIFC reaching 39,140, a 20% year-on-year rise, aligning with the goals of DIFC’s 2030 Strategy and reinforcing Dubai’s status as a premier global talent hub.
The high demand for commercial space continued in the first six months of the year, with DIFC leasing over 233,000 sq. ft. of owned and managed commercial space, achieving an impressive occupancy rate of 99%.
Dubai’s Global Financial Hub Recognition
Dubai’s growth as a global financial hub received further recognition from esteemed international indices, including the spring 2023 edition of the Global Financial Centres Index, which classified the city as one of only ten financial centres worldwide with broad and deep capabilities. Notably, Dubai stands as the sole financial centre in the Middle East, Africa, and South Asia region to be included in this prestigious classification.
H.H. Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance and President of DIFC, said, “DIFC’s exceptional performance in H1 2023 once again demonstrates the strength of the ecosystem it offers for investment, innovation and enterprise to flourish in the financial industry. DIFC has not only propelled Dubai’s development into a pre-eminent global financial hub but also helped create new spirals of growth in the wider region.
Role in Dubai’s Economic Growth and Strategy 2030
“As the emirate enters a new phase of growth with the implementation of the Dubai Economic Agenda D33, DIFC will be a vital contributor to the emirate’s efforts to open new horizons of sustainable development and unlock the potential of advanced financial technologies.”
Essa Kazim, Governor of DIFC, said DIFC plays a pivotal role in driving Dubai’s economic growth in line with the Centre’s Strategy 2030 and the Dubai Economic Agenda (D33).
“Dubai’s official global leader status will help DIFC differentiate our position with international finance and business communities, ensuring we can continue to advance our contribution to the economy,” he added.
Arif Amiri, Chief Executive Officer of DIFC Authority, said, “DIFC’s tremendous success in the first half of 2023 continues to illustrate how we are shaping the future of finance. Our unwavering commitment to growth has yielded outstanding results, with client attraction and expansion leading to a remarkable increase in job creation, bolstering the international workforce in DIFC. This achievement reinforces DIFC and Dubai’s prominence as a global destination for top-tier talent as we continue to deliver to our Strategy 2030.”
DIFC, with its increasing number of 632 financially regulated firms, has surpassed 600 for the first time in the first half of 2023. This influx of top firms highlights Dubai’s appeal as a global financial industry hub and DIFC’s exceptional value proposition for industry players.
DIFC’s cluster of 811 FinTech and Innovation firms is the largest of its kind in the region, collaborating with the broader ecosystem of 4,949 companies to drive the future of finance using DIFC’s growth-enabling platform.
Dubai FinTech Summit’s Success and Collaborative Agreements
The inaugural Dubai FinTech Summit in May 2023, under the patronage of His Highness H.H. Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, attracted 5,300 visitors from 92 countries and witnessed the signing of over 20 Memorandums of Understanding (MoU), including 12 MoUs with leading global finance and technology firms.
To foster innovation and growth, DIFC introduced the ‘Dubai AI and Web 3.0 Campus’, set to become the largest cluster of AI and tech companies in the region, attracting over $300M in collective funds and housing over 500 global AI and Web 3.0 start-ups, creating over 3,000 jobs by 2028.
The Innovation Hub launched DIFC Launchpad, a venture-building platform aimed at supporting more than 200 new ventures in Dubai, generating over 8,000 jobs, and attracting over AED2 billion in venture capital.
To support family offices, DIFC developed the DIFC Family Arrangements Regulations 2023, while also launching the global DIFC Family Wealth Centre, the world’s first center providing tailored services for families with long-term visions and global ambitions.
DIFC’s commitment to addressing climate change led to the establishment of the Path to COP28 program for the global finance community ahead of the 28th session of the Conference of the Parties (COP28) to the UNFCCC in Dubai.
This initiative, conducted in collaboration with the Global Ethical Finance Initiative (GEFI), included industry roundtables, summits, and an education program organized through the DIFC Academy, with reports published by the Dubai Sustainable Finance Working Group (DSFWG) to promote structured approaches to delivering Net Zero, ESG innovation, and sustainability-linked lending.
DIFC’s ongoing initiatives are set to foster the growth of sustainable finance in the region leading up to COP28 and beyond.
