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29 March 2024

DIFC set to triple in size by 2024

The Special Tribunal set up to hear claims submitted against Dubai World companies will physically hold its hearings in the DIFC. (EB FILE)

Published
By Wam

Dubai International Financial Centre (DIFC) is poised to grow three-fold over the next 10 years through the integration of a four-pronged strategy that includes deepening core client synergies, enhancing infrastructure, increasing the availability of skilled staff, and stepping up access to the South-South trade corridor.

H.H. Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai and President of DIFC, underlined the ambitious plans of DIFC in expanding and reinforcing its position as an international financial hub.

He said, "DIFC’s ambitious 10-year strategy reflects a clear understanding of the future, inspired by the wisdom and insightful vision of the UAE’s leadership. It consolidates the accomplished successes of the past, and builds on the achievements, to live up to the aspiration of the UAE’s people. This strategy will mark a new beginning and the initiation of an innovative phase, with a focus on opportunities that strengthen our nation’s position as an important link and regional centre of significance, to create an impact on the world economic map."

Sheikh Maktoum noted that the experience and confidence gained by DIFC over the past decade qualifies the Centre today to offer new dimensions to the legislative, financial and investment ecosystem in order to sustain the growth and prosperity of the national economy, as well as local and international partners.

He said, "In our strategy for the next 10 years, we look forward to stimulating and driving our collective aspirations to enter a new phase of leadership, in a way that puts us at the forefront of financial centres on the global landscape."

The announcement was made at a media briefing headlined by Essa Kazim, Governor of DIFC.

The strategy outlines goals and opportunities that the centre aims to achieve in the next decade, through continuing to expand its physical and legislative infrastructure, to keep pace with targeted growth, and to ensure that DIFC ranks within the top 10 financial centres globally.

DIFC also aims through its 10-year strategy to align its goals and Dubai Plan 2021, to reinforce its position as an international centre for legislative and Islamic financial services.

Key highlights of DIFC’s 2024 strategy include the following core areas:

DIFC expects to increase the number of active domiciled financial firms to 1,000 by 2024 in comparison to 362 in 2014.

Align a broader human skill-base with the substantial development of infrastructure. The combined workforce of DIFC-registered companies is set to grow from 17,860 to 50,000 over the next decade.

Consolidate net additional 5.5 million sq. ft. commercial office space, as against 2.5 million sq. ft. in 2014.

To encourage robust best-practices, DIFC will further develop services and business capabilities that ensure the delivery of quality growth in the coming years.

Overall assets under management of fund managers and financial institutions are expected to rise to an estimated US$250 billion by 2024, up from a total of US$10.4 billion in 2014.

In addition, DIFC anticipates financial firms to strengthen their balance-sheet by an estimated value of US$400 billion, compared to US$65 billion in 2014, through enhancing liquidity to fuel future growth.

Addressing the media briefing, Essa Kazim, Governor of DIFC and Chairman of DIFC Authority, said: "The unwavering support of our clients has made DIFC a tremendous success story in the last decade. The number of registered firms climbed 18 per cent to 1,225, with 242 new companies licensed in 2014 alone. The total workforce at the financial hub as of 2014 stood at 17,860.

"Going forward, we aim to enhance our services and product offerings towards boosting business and establishing new benchmarks. In line with the Dubai Plan 2021, DIFC’s strategy identifies the key engines of growth, focusing on new solutions and structural reforms. The Centre is critically important to the emirate's ability to finance growth and create jobs by attracting global investors."

He added: "Based on the fundamentals of sustainable and inclusive growth, DIFC has identified key goals towards drawing new financial services firms, expanding the presence of a skilled workforce, enhancing infrastructure to optimise occupancy, increasing assets under management, and strengthening our balance-sheet position to eventually cement our position as one of the leading financial centres globally.

"DIFC believes the implementation of these recommendations is crucial to boosting the growth of not only the financial centre, but also that of the UAE and the wider region."

To enhance DIFC’s real estate proposition, aggressive plans are underway to combine all plots together to form a pivotal retail project. With the design being finalised, the Centre aims to complete the project by Q2 of 2017.

Collectively, the financial district aims to align its goals with Dubai Plan 2021 to transform DIFC as a global financial services hub.

The Dubai Financial Services Authority (DFSA) in conjunction with DIFC Courts has evolved as the most transparent, secure, and professional regulatory and legal system in the region. Going forward, the Centre aims to bring domestic regulators on par with international standards, securing a leading position not just in the Middle Eastern region but on a global scale.