Wednesday, Jul 25, 2012
DUBAI (Zawya Dow Jones)--Dubai International Financial Centre, the emirate's financial free zone, is expected to grow at a faster clip this year as increased interest from Asian companies helps offset any weakness stemming from the euro-zone debt crisis, according to a senior official.
Economic activity at the DIFC rose 7% on year to $3.1 billion in 2011, growing for the second straight year after shrinking 2.4% in 2009 amid the global financial meltdown, the centre said in a new report released Wednesday.
Continued positive trends in the U.A.E. on the back of high growth in sectors varying from trade to tourism, as well as the country's perceived status of a safe haven amid regional unrest have all contributed to the migration of companies to the DIFC, Nasser Saidi, the free zone's chief economist, told reporters here.
"Local banks are picking up on that... and Asian banks as well. Indian and Chinese banks are replacing them. We have seen European companies moving from elsewhere in the region, from Egypt, Bahrain.. .to DIFC," Mr. Saidi noted.
In 2011, the number of active registered companies in the DIFC was up 5.7% on year to 848, according to the report.
"Growth in emerging markets have also contributed to DIFC's growth.. .we see an increase in the number of companies from the Middle East and Asia, mainly China and India, who register in DIFC," Abdulla Al Awar, DIFC's chief executive officer, said.
Though China's economic growth has slowed a bit this year, yet "it still enjoys a relatively high growth number. It is the predominant investor in Africa...and Dubai has become its platform for that," Mr. Saidi added.
The financial services sector remains the key value contributor to DIFC activities, accounting for about 70%, or $2.1 billion, of the free zone's overall activity last year, the report said.
-By Leila Hatoum, Dow Jones Newswires; +971-4-446-1686; leila.hatoum@dowjones.com; Twitter: @ZDJnews
Copyright (c) 2012 Dow Jones & Co.
(END) Dow Jones Newswires
25-07-12 1039GMT
