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DIFC draws 64 firms in first half

By Issac John DUBAI -- The Dubai International Financial Centre , DIFC , a global finance and business hub, said it drew 64 more companies in the first half of 2011, raising the total number of active firms operating in the free zone to 813.

The continued growth in the number of DIFC companies reflect that the financial hub remain the sought after business destination regardless of the regional unrest and a continued global economic downturn.

"The outlook for economic growth in the region continues to be strong due to the long-term fundamentals, particularly its abundance of natural resources and youthful populations, as well as the benefits of economic integration through the GCC Common Market and larger free trade area," said Abdulla Mohammed Al Awar, CEO of DIFC Authority.

He said DIFC , with its modern infrastructure, free zone status and self-governing laws and courts, is well positioned to support this growth in the region and to continue to be a major contributor to the UAE and wider region economies.

The financial free zone currently has 312 regulated and 409 non-regulated companies, and 92 retailers, the DIFC said in a statement.

Launched in 2004, the DIFC now home to 18 of the top 25 global banks, global asset managers, insurers and law firms. The authority said it continued to see interest from the Americas, Europe and Middle East and increased interest from Asia. Around 44 percent of new regulated companies joining in the first half of 2011 came from the Middle East and Asia and 50 per cent from Europe and North America, it said.

Marwan Ahmad Lutfi, Deputy CEO and Managing Director of Business Development & Services, said 2011 marked the beginning of a new phase in DIFC 's development as one of the leading global financial centres.

"We are focused on expanding our existing client partnerships and on attracting new players to drive the development of the financial services market in the region. This has translated in the number of existing clients expanding their presence in the Centre, and the strong pipeline of companies and applications currently being processed."

DIFC said the growth in number of registered companies remained consistent in the first two quarters of 2011 at around 32 companies per quarter, which is similar to that recorded in the last three quarters of 2010.

DIFC has also built upon its stature as the regional hub of choice for the world's leading companies which is underlined by the geographical diversity of regulated firms operating out of the centre with 30 per cent from the Middle East, 10 per cent from Asia, 41 per cent from Europe; 16 per cent from North America and three per cent from the rest of the world. DIFC is also home to 18 of the top 25 global banks, six of the 10 largest insurers, six out of the 10 top law firms and eight of the top asset managers in the world.

The financial hub said in a statement that as part of its commitment to support the growth of financial services and commercial activities in the region, it continued to build on its internationally recognised regulatory framework and legal system.

"Dubai was ranked eighth globally in terms of growth and development and has maintained its status as the leading financial centre between Singapore and Europe," the DIFC top executives said.

In the 2011 first half, the DIFC Authority signed new MoU with the Chengdu Financial City Investment and Development Co, the Korea Capital Market Institute and the Dubai SME. At the same time, the other independent entity under the DIFC umbrella, the Dubai Financial Services Authority (DFSA), entered into three new MoUs. These were with the Reserve Bank of India, the UAE Insurance Authority, and DFSA Cayman Islands Counterpart.

DIFC said demand for space at the free zone continued to grow during the first half of 2011 fuelled by the appetite of existing clients for business expansion and the centre's attraction of new regional and international clients.

Development of DIFC 's physical infrastructure continued steadily in the first half bringing the total leasable area, including third party developers, to above two million square feet of office space. Commercial space leased by new and existing companies increased by more than 130,000 square feet in the period.

"Occupancy of DIFC 's owned commercial offices in the Gate District remains above 95 per cent of the leasable space. Robust demand from new companies and existing clients increased the occupancy within third party developments to 58 per cent compared to 44 per cent in 2010. Total commercial office space within third party developers is 769,000 square feet," the statement said. Total DIFC owned retail space available as of end of period increased by 41,000 square feet (a growth of 22 per cent), of which 94 per cent is occupied, the company said.

© Khaleej Times 2011