DIFC Transforming UAE as a Global Financial Hub

Established in 2004, Dubai International Finance Centre (DIFC) marked the evolution of the UAE’s progression into one of the world’s top financial centers. The DIFC was established in line with Federal Decree No. 35 of the United Arab Emirates (UAE) as part of Dubai’s strategic goal to diversify its economic resources and attract money and investments to the area. With a 17 year track record of enabling regional trade and investment movements, linking the Middle East, Africa and South Asia (MEASA) markets, DIFC is transforming UAE as a global financial hub.

Being the region’s largest financial ecosystem, it has one of the most complete FinTech and venture capital environments in the area, with cost-effective licensing options, fit-for-purpose legislation, innovative accelerator programs, and growth-stage start-up investment.

DIFC is one of Dubai’s independent free zones which offer companies 100% ownership.

The advantages of setting up business in DIFC are as follows:
Regulated business Environment
Exemption from tax
Capital Repatriation
Strategic Location and best network connectivity
Diverse Ecosystem with high concentration of regional and International Firms

The Dubai Financial Services Authority is the DIFC’s own independent, internationally recognized regulator (DFSA). The DFSA oversees regulated businesses and ensures that they follow all applicable laws and regulations. As per reports, in the global financial industry the number of new firms operating in DIFC increased by 20% in 2020, bringing the total number of enterprises to 2,919. There are now 915 financial services businesses operating in DIFC, up from 735 in 2019. Adding to DFSA, DIFC has its own legal system that is separate from the rest of the UAE. The DIFC Courts maintain the highest international standards of judicial procedure and conflict resolution by operating under a common law framework. For the purpose of settling all civil and commercial laws, the DIFC Courts serve as an independent administrator of justice.

The DIFC’s mission is to shape the financial future. In 2020, the total bank assets recorded by the DIFC increased by 6% to US$189 billion. DIFC also arranged an additional loan of US$64 billion in 2020. DIFC-based asset and wealth management portfolio managers invested US$203.5 billion, an increase of 106% from the US$99 billion in 2019, and the industry is now worth US$528.5 billion. Despite the global economic downturn, DIFC’s operating profit last year was US$125 million, basically the same as the previous year.

One of the key elements in the financial centre is the privately operated financial exchange, known as NASDAQ Dubai, debuted in September 2005 as Dubai International Financial Exchange (DIFX), but was renamed as NASDAQ Dubai in 2008 which is regulated by DFSA. It enables businesses to tap into a unique investor pool that blends regional and worldwide wealth, making it a globally unique platform for businesses to raise capital and investors to discover exciting opportunities.

Covering a vast 272 acre area of special economic zone and home to an internationally recognized independent regulator, DIFC is transforming UAE as a global financial hub. This premier destination is considered as a gourmand’s haven as it is home to a diverse range of internationally recognized retail and culinary establishments with a thriving art and cultural scene, as well as residential flats, hotels, and public spaces. Dubai International Financial Centre (DIFC) is a vibrant district, alive with art galleries representing work by emerging and established artists from around the world set among state-of-the-art urban architecture, upscale apartments, and power-lunching city workers.

Our team at Aon Management Consultants, Dubai gives flawless solutions to our clients with well informed decisions about starting a business. The most essential steps we take to keep our client’s information transparent are to assist and envision them to complete the project. We have a sleek approach for the to-do lists, and using a simplified method, we guarantee that everything is completed in an organized way.