• Home
• /
• Business

DIFC sees potential to post 100% growth in 5 years

“We have the potential to double in size in the next five years given the rate of progression we have seen so far,” Abdulla Mohammed Al Awar, chief executive officer of the DIFC Authority said while announcing a seven per cent growth in the number of companies located within the free zone in 2011.

The number of active companies at the free zone rose to 848 as at December 31, 2011, compared to 792 in 2010.

He said the DIFC’s achievements of recent years underscored its emergence as a global hub of finance and business. “Our world-class infrastructure and common-law jurisdiction provide a stable platform for global and regional firms to access the regions emerging markets and beyond.”

Al Awar added: Although the past two years were exceptionally challenging from a global perspective, the community in the DIFC was resilient and this was noticed in the net positive growth in the number of clients that tapped into the DIFC during this period.”

Companies at centre came from around the world, with increasing interest from Asia and sustained interest from the Americas, Europe and Middle East, Al Awar said at a Press conference.

There was also a record growth in the breadth and depth of financial activity by the centre’s active regulated firms with major international clients using the DIFC platform to expand their regional footprint, the head of DIFC Authority said.

The centre added around one million square feet of commercial office space during the year.

He said alongside the sustained interest from the Americas, Europe and Middle East, 2011 saw an increased interest from companies in Asia to establish presence in DIFC. “Today, the geographical diversification of total regulated firms illustrates the global integration of the Centre with approximately 37 per cent coming from Europe, 26 per cent from the Middle East, 17 per cent from North America, 11 per cent from Asia, and nine per cent from the rest of the world,” the authority said.

Despite the impact of the European debt crisis, the global economic downturn and the regional changes witnessed last year, the DIFC continued to strengthen its position as the leading international financial centre in the region, Al Awar said. The number of employees working in DIFC is around 12,000. In 2011, DIFC issued 135 new commercial licences, 71 of which were registered in the second half of the year, representing a 19 per cent annual increase in registrations (113 registrations in 2010). The Centre welcomed 41 new regulated companies including BNP Paribas Wealth Management, Bank Vontobel Middle East Ltd., Paladin Capital Group, Jefferies International Limited and Attijariwafa Bank; 70 new non-regulated companies including Egon Zehnder International LLC; and 24 new retailers including Gaucho, Debauve & Gallais Chocolates and U energy boutique health club.

DIFC is currently home to 21 of the world’s top 30 banks, six of the world’s 10 largest insurers, six of the top 10 law firms and 8 of the top 20 money managers.

Demand for space at DIFC continued to grow during 2011 fuelled by the influx of new regional and international clients, and the appetite of existing clients for business expansion. Development of the DIFC’s physical infrastructure continued steadily with the addition of about 1.8 million square feet of gross floor area of commercial office space that resulted from the Index Tower, Park Towers and Emirates Financial Towers developments, the authority said.

The centre said a total of 262,000 square feet of new space was leased to new and existing companies during 2011, representing an annualised growth rate of around 14 per cent. In 2011, DIFC completed a global business drive targeting companies from different business and financial sectors in China, India, Brazil, US and Europe.

issacjohn@khaleejtimes.com