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Wednesday, March 22, 2023

DIFC achieves record growth in 2022; revenue tops AED1 billion

DIFC achieves record growth in 2022; revenue tops AED1 billion

The Dubai International Financial Center (DIFC) reported record growth in 2022, with the number of active registered companies increasing by 20% to 4,377 in 2022 from 3,644 in the previous year.

New companies registered with DIFC in 2022 surpassed the annual milestone of 1,000 for the first time in the Centre’s history, with a total of 1,084 new companies registered in 2022.

In 2022, DIFC’s consolidated revenue will exceed AED 1 billion (US$ 272 million) for the first time. The center’s revenue increased by 18% year-on-year to AED1.06 billion from AED897 million in 2021. Operating profit in 2022 will increase by 19% to AED 679 million from AED 573 million in 2021. Total assets exceed AED 15.3 billion, reflecting DIFC’s strong financial position.

His Excellency Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai; Deputy Prime Minister and Minister of Finance of the UAE; Contributes significantly to the goals of economic agenda D33, which aims to transform Dubai into one of the world’s top three business cities.”

He noted that the 2022 results also reflect the growing need for a supportive ecosystem among global businesses looking to expand into emerging economies with high-growth financial services markets.

“As financial technology becomes an important growth catalyst across industries, the UAE’s ambitious initiatives to drive the future of finance will create enormous opportunities and new economic growth not only in our region but globally,” he added.

The center also posted its best-ever performance in terms of additional net commercial space leasing in 2022, with 809,000 square feet leased in 2022 compared to 349,000 square feet in 2021.

Total banking assets recorded in DIFC were stable at $199 billion. DIFC companies also arranged an additional $166 billion in loans, a 54 percent increase. As a global center for wealth and asset management in emerging markets, DIFC’s portfolio managers invested $164 billion in 2022, compared with $151 billion in 2021. Venture capital raised rose 78 percent to $1.2 billion. Gross written premiums for the insurance industry reached $2.1 billion, up from $1.8 billion in 2021.

DIFC-based fintech and innovation companies will attract over US$615 million in 2022. Financial technology and innovation became the fastest growing industry in DIFC, with 291 new clients. DIFC now hosts 686 fintech and innovation companies, ranging from start-ups to global unicorns.

A total of 1,369 finance and innovation-related entities are currently active and operating within the DIFC, a 22% increase on 2021, while 291 new fintech and innovation companies will join in 2022, bringing the total to 686, a 36% increase.

The number of financial entities regulated by the Dubai Financial Services Authority (DFSA) increased from 51 in 2021 to 590, with 89 regulated financial services firms authorized in 2022.

DIFC Governor Essa Kazim commented: “Dubai’s economy continues to grow and DIFC is proud to be a significant contributor to Dubai’s GDP and a major job creator. The UAE is globally recognized for its pandemic management, strategic investments and business-friendly structural reforms , long-term residency programs and an innovation-friendly regulatory framework help attract entrepreneurial talent from all corners of the world.

“Our focus in 2023 will be to accelerate future economic development by cementing our position as the gateway of choice for businesses looking to expand and grow in the massive Middle East, Africa and South Asia (MEASA) market and attracting further investment. UAE’s financial sector.”

Arif Amiri, Chief Executive, DIFC Authority, said: “Continued focus on delivering on our 2030 strategy means another extraordinary year for DIFC. In line with our vision to drive the future of finance, DIFC’s comprehensive fintech and innovation Enterprises, global players and unicorns create unparalleled opportunity and success. Our client growth remains strong across all segments.

“However, we continue to be excited by the large number of financial companies, fintechs and innovative clients who are using DIFC as a platform to grow faster than the market. We believe that DIFC’s approach will continue to enhance Dubai’s reputation as a technology and innovation hub , and further strengthen our position as a global financial services hub.” – trade arab news agency

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