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DIFC eyes two-fold growth by 2015

By Issac John DUBAI -- Dubai International Financial Centre , or DIFC , said on Sunday that it would see a two-fold growth in the number of active registered companies to 1,500 by 2015 at the tax-free financial hub although the "road ahead 
remained challenging".

"The growth in number of registered companies remained consistent in the last three quarters of the year at around 31-32 companies per quarter. On the other hand, the number of registration withdrawals continued to decrease, with fourth recording the lowest rate in 10 quarters, just two companies, underscoring the mounting optimism about the centre's potential as a top international financial centre connecting the regional emerging markets with the rest of the world," top DIFC officials said at a media roundtable.

Ahmed Humaid Al Tayer, Governor of DIFC , said he was confident that the onshore financial hub would be able to hit the 1,000-company milestone in the very near future while recording a two-fold growth in five years.

"The solid growth witnessed by DIFC in 2010 reflects the importance of the Centre to financial and business institutions looking to take advantage of opportunities present in the UAE and the wider region. With its continuous efforts to develop further its modern infrastructure, free zone offering and self-governing laws and courts, DIFC has consolidated its position as the pre-eminent financial centre in the region," Al Tayer said.

DIFC Investments , a wholly owned subsidiary of Dubai International Financial Authority, plans to divest non-core investments by the end of 2011, officials said. "We are very proud of the growth and success we have achieved on different levels in 2010. There is no doubt that the road ahead remains challenging," said Abdulla Mohammed Al Awar, CEO of DIFC Authority.

He said there are still many untapped opportunities that the new strategy would position DIFC to take advantage of. "We are committed to growing our existing client partnerships and we look forward to the continued support and guidance of our clients."

Demand for space at DIFC continued to grow during the second half of 2010, he said.

Development of DIFC 's physical infrastructure continued steadily in 2010 bringing the total leasable area, including third party developers, up to 2,074,818 square feet.

Commercial space increased by approximately net 253,000 square feet in 2010, a growth of 19 per cent. Occupancy of DIFC 's owned commercial offices in the Gate District remains high above 95 per cent while other occupancy including third party developments is currently at 44 percent. A total area of two million square feet is to be added over the next 18-24 months.

In 2010 fourth quarter, DIFC revised the cost of doing business and announced a reduced pricing structure to emerge more competitive than its global peers, said Al Awar.

"The revised pricing structure, which is expected to stimulate economic growth by creating a cost competitive business environment in DIFC , entailed revisions to office space rents as well as operational fees," he said.

"We are committed to undertaking a regular review of DIFC 's pricing model to ensure it remains competitive," said Al Tayer.

© Khaleej Times 2011