UAE. The Dubai International Financial Centre (DIFC), the financial and business hub connecting the region’s growth markets with the markets of Europe, Asia and the Americas, today issued its Monetary and Financial Report covering the period 2008 to Q1 2012, updating the market on the monetary and financial activity of entities registered in the Centre during that period.
• Deposits out of DIFC by regulated entities have grown rapidly in the past 3 years at an average annual rate of 39% to reach US$12.8 billion at the end of Q1 2012.
• Loans and advances of DIFC’s regulated entities rose over the [past 3 years] at an average annual rate of 40% to reach US$14.7 billion at the end of Q1 2012.
• Assets under management at DIFC-based companies remained steady, and recorded US$8.1 billion at the end of Q1 2012.
Abdulla Mohammed Al Awar, CEO of DIFC Authority said: “As one of the global financial hubs, it’s natural that we are observing an influx of new companies from around the world, especially banking and financial services firms, who are attracted by the vast opportunities the region offers. The numbers are also testament to the successful growth in the breadth and depth of financial activity within DIFC due to the diverse services provided by the regulated firms.
“Our effort toward enhancing DIFC’s legal and regulatory framework as well as its physical infrastructure positions DIFC as an ideal platform for regional and international growth.”
Since its inception, DIFC continues to grow steadily as one of the world’s established financial centres. As of March 2012, the DIFC community comprised of 861 active registered companies (322 regulated and 539 non-regulated companies); already 2% up on 2011 numbers.
Dr. Nasser Saidi, Chief Economist, DIFC said: “DIFC is the only international financial centre that collects and publishes financial activity data of its registered entities. What the data clearly shows is that DIFC entities have witnessed continued real growth over the past three years, despite the international financial crisis and regional events.
"Deposits and credit growth rates of DIFC-based companies have also been substantially higher compared to those of the GCC area banks. We expect higher growth to continue as DIFC-based companies expand their activities further."
DIFC is home for 21 of the world’s top 30 global banks, 8 of the top global money managers, 6 of the 10 largest insurers and 6 of the top 10 law firms in the world.
The DIFC Monetary & Financial Statistics are collected from different sources. DIFC related data and estimates were provided by the DIFC Economics team and the Dubai Financial Services Authority (DFSA). Other information, including data on deposits, credits, and assets under management outside the DIFC, were collected from monetary and statistical authorities’ websites and Reuters’ databases.
To read the complete “DIFC Quarterly Monetary & Financial Report”, please visit http://www.difc.ae/difc-monetary-financial-statistics-28-may.
The Dubai International Financial Centre (DIFC) is the financial and business hub connecting the region’s emerging markets with the developed markets of Europe, Asia and the Americas.
Since its launch in 2004, DIFC, a purposely built financial free zone, has been committed to encouraging economic growth and development in the region through its strong financial and business infrastructure. Currently, DIFC's client base comprises over 800 active registered firms, including 21 of the top 30 global banks, 8 of the top global money managers, 6 of the 10 largest insurers and 6 of the top 10 law firms in the world. More than 12 thousand employees operate in an open environment complemented by international legal and regulatory standards.
DIFC offers its member companies benefits such as 100 percent foreign ownership, zero percent tax rate, with no restriction on capital convertibility or profit repatriation. DIFC has its own independent financial and ancillary services regulatory body, the Dubai Financial Services Authority (DFSA). It also has the DIFC Courts, which is an independent common law judiciary based in DIFC with jurisdiction over civil and commercial disputes in or relating to the Centre.
DIFC is built upon a modern legal, regulatory and physical infrastructure which makes it the destination of choice for Financial Services firms establishing a presence in the region.
For further information, please visit www.difc.ae, or follow us on Twitter @DIFC.