DIFC adds 20% more leasing area

Leasing area in Dubai International Financial Centre (DIFC) has gone up, it says.

Spread over total available area, including third party developers, of 2,116,311 square feet of office space, DIFC's annualised growth rate was 20 per cent in terms of additional office space leased in the financial free zone, it said in a statement issued on Tuesday.

Occupancy of the DIFC's Gate District which includes Gate Building, Gate Precinct and Gate Village remains high at 92 per cent of the leasable space.

Total office space in the DIFC's Gate District is 1,471,625 square feet and an additional 170,000 square feet of leasing units will become available shortly. This represents an annualised growth rate of 20 per cent in terms of additional office space leased in the DIFC. In total, the Centre saw take up of over 160,000 square feet of commercial office space during the period, much of which was on behalf of existing clients focused on growing their business in the region. The area leased in the first half of 2010 exceeded the total area leased in the whole of 2009.

DIFC said the number of companies in the free zone remained static at 745 year-to-date with 67 fresh companies were registered mainly from emerging markets such as China, Malaysia and Indian Subcontinent.

DIFC clients are beginning to move into the new offices provided by third party developers (Currency House, Currency Tower and Liberty House) and demand for these units is proving robust.
 

The total retail space available is 211,966 with 66 pre cent of which is currently occupied. The DIFC is in the process of revising its retail strategy to bring the services offered into closer alignment with the needs of the DIFC community. Following consultation with clients, a new range of retailers will be joining the Centre, featuring more fine and casual dining restaurants, groceries and food shops as well fine art galleries.

DIFC said the cost of doing business will be reduced to encourage the growth of businesses.
Ahmed Humaid Al Tayer, Governor of the DIFC, said: "Since its inception in 2004, the DIFC has grown to become one of the world's top international financial centres connecting the MEASA region and the world.

Today, the DIFC with its modern infrastructure, free zone status and self-governing laws and courts, is globally recognised as the pre-eminent and favoured financial centre in the region. These facets enable the DIFC to make a major contribution to the UAE economy.

"While the DIFC continues to evolve, we have achieved a very encouraging performance so far this year, especially in light of the global economic backdrop of the last two years. The MEASA region has significant economic advantages from its commodity-based economies, its geographical position and the depth of its talent pool. As the recovery continues to take hold, these factors will once again act as catalysts for the future economic growth of the region and the DIFC".

Abdulla Al Awar, CEO of DIFC Authority said: "We are now embarking on a new phase of growth and continue to act as a gateway between the MEASA region and the world's capital markets. Our focus is to expand and grow our existing client partnerships. We will continue to attract new companies to the Centre, as evidenced by the strong pipeline of companies and applications currently being processed. We will also continue to develop the DIFC's legal and regulatory framework and its physical infrastructure to enhance the support the DIFC provides for the economic growth of the region."

The DIFC community comprises of 745 active registered companies, with 297 regulated and 374 non-regulated companies, and 74 retailers.

By the geographical diversity, approximately 40 per cent of the regulated firms based in DIFC are from MEASA; 42% from Europe and 18 per cent from the US and rest of the world.

During the first six months of 2010, the number of companies registered in the DIFC remained constant despite the economic downturn. While a small number of firms have withdrawn over the period from the Centre, a significant number of firms from across the world continued to join including first time entrants into the region Note4.

The DIFC witnessed an increased interest from companies based in MEASA, part of which demonstrates a growing trend of Asian and Indian companies looking to Dubai as the gateway into the Middle East and Africa region. This trend was reflected in the new registrations granted during the first half of 2010.

From December 2009 till July 2010, the development of physical infrastructure continued with the addition of 308,687 square feet of commercial office space. Total leasable area, including third party developers, is now equal to 2,116,311 square feet of office space.

The DIFC plans to reduce the cost of doing business from the Centre and enhance client services, to encourage the future growth and expansion of its clients' businesses. The DIFC is committed to undertaking a regular review of its pricing model to ensure it remains competitive.

Follow Emirates 24|7 on Google News.