Dubai reinforces position as leading regional financial hub

Dubai has further consolidated its position as leading financial services hub in the Middle East, Africa and South Asia, or MEASA, as the Dubai International Financial Centre, or DIFC, on Tuesday announced record financial results for 2024 in coincidence with its 20th anniversary.

The DIFC now houses 6,920 active companies, a 25 percent increase from 5,523 in 2023. It also recorded 1,823 new registrations in 2024, the highest annual figure to date, reflecting historic 25 percent growth, according to a release of the Government of Dubai Media Office.

Its total revenue for 2024 reached AED1.78 billion ($484 million), marking the largest annual increase since its inception and a 37 percent rise from its record-breaking performance in 2023. Operating profit surged to AED1.33 billion ($363 million), up 55 percent.

The DIFC's clients now include 27 of the world's 29 global systemically important banks and at the end of 2024, the Dubai Financial Services Authority, the independent regulator for business undertaken from or within the DIFC, regulated or supervised in excess of 900 entities.

Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, the UAE's deputy prime minister and minister of finance of the UAE, also DIFC president, said the exceptional growth over the last 20 years reflects Dubai's efforts of transforming the Emirate into a leading global financial center, vowing that Dubai will continue to consummate its financial ecosystem.

Last year marked the 40th anniversary of the establishment of diplomatic relations between China and the UAE. It witnessed a surge in interest from banks, wealth and asset management firms, large corporations and organizations in the (re)insurance sector.

The biggest names in the Chinese banking and financial services industry have set up operations out of the DIFC, with 30 percent of these entities from the country being Global Fortune 500 companies.

Bank of Communications opened its regional headquarters in DIFC in November, joining other financial institutions including Agricultural Bank of China, Bank of China, China International Capital Corporation Securities, CMB International Securities, Construction Bank of China, Industrial and Commercial Bank of China and SINOSURE. Large corporates such as CNPC, Li Auto, NIO, Sinopec, State Grid Corporation of China, Terminus and ZTE have also established their presence in the DIFC.

The UAE is among China's most important strategic business partners in the Arab region, with about 60 percent of Chinese trade being re-exported through UAE ports to more than 400 regional cities.

According to the DIFC, it is home to the UAE's only cluster of Chinese financial companies including the largest five banks, which collectively contribute over 30 percent of the its total banking and capital markets assets.

Chinese banks are actively issuing bonds on Nasdaq Dubai, including green bonds, with proceeds being used for renewable energy, seawater desalination, clean energy and transportation projects in the UAE and the wider region. Over the years, Chinese issuers have listed over USD 22bn in debt on Nasdaq Dubai. In November, bonds worth $2 billion were listed on Nasdaq Dubai by China's Ministry of Finance.

"The DIFC has become the financial center of choice for Chinese entities within the finance sector as well as multinational companies. Economic ties between the UAE and China continue to deepen as the two countries mark their fortieth year of diplomatic relations," said Arif Amiri, CEO of DIFC Authority.

"We remain committed to providing Chinese businesses with the best-in-class platform that will help shape their growth and expansion within the Middle East, Africa and South Asia region," he said.