DUBAI: Dubai's international financial centre DIFC is set for a multibillion-dollar expansion, the Dubai ‍Media Office said ‍on Tuesday, as the emirate seeks to make it one of the world's largest financial hubs.

The ​development announced on Tuesday and dubbed "Zabeel District" has a total value of $27.23 billion, the Dubai Media Office said on X. It ⁠will have capacity to host 42,000 companies and will be delivered by 2040, DIFC said, providing office, residential, retail ⁠and hospitality ‌space and education and arts facilities across an area roughly the size of 120 American football fields. The financial hub expansion will be connected to the Dubai Loop, a projected underground ⁠high-speed transport network announced by Elon Musk and UAE authorities, and will be able to host flying taxis and autonomous vehicles.

DUBAI EXPANDING

The plans for the hub expansion are part of a major infrastructure and real estate push by Dubai, adding to another DIFC expansion set to be completed by the ⁠first quarter this year that will boost ​office space by 600,000 square feet.

The Gulf's business and tourism hub, home to the world's tallest building, has seen a post-pandemic ‍property boom, fuelled by foreign investment and government-led residency reforms, with its population ballooning past the 4 million mark last year, according to government ​estimates.

As Gulf countries diversify their economies away from oil, investing billions in sectors like financial services and infrastructure, hubs like DIFC have been attracting an increasing number of firms.

The centre hosted more than 8,000 active registered companies as of the end of November, including hedge funds, whose number has more than doubled since 2024.

Developers are betting on solid demand for office space amid a continuous influx of companies lured by lower taxes, convenient time zones, and the presence of some of the world's biggest sovereign wealth funds.

FIRST PHASE EXPECTED TO BE DELIVERED IN 2030

The project will be one of the biggest in the emirate, alongside a new metro ⁠line and a $35 billion expansion of the Al Maktoum Airport.

The first phase ‌is expected to be delivered in 2030 and will include six new office towers, two residential towers, a hotel and an AI Campus.

"The project will be supported through a combination of internal resources, future development ‌revenues, and other financing ⁠structures as needed," the DIFC said.

($1 = 3.6728 UAE dirham) (Reporting by Federico Maccioni in Dubai; Additional reporting by Menna Alaa ⁠El-Din and Jaidaa Taha in Cairo; Editing by David Goodman and Jan Harvey)