Dubai International Financial Centre (DIFC), the leading international financial hub in the Middle East, Africa and South Asia (MEASA) region, continued to accelerate growth in the first half of 2020, with 310 new company registrations, an impressive 25% increase from the same period in 2019.

The total number of active registered companies in the DIFC increased to 2,584, a significant achievement amidst the prevailing global economic environment. These accomplishments paralleled the Centre’s efforts to help clients emerge stronger from the COVID-19 pandemic with a comprehensive stimulus package aligned with Dubai Government’s broader economic stimulus programme.

In H1 2020, DIFC sawan average monthly registration of 52 companies and two record breaking months – 66 new companies in March and 88 in June. The Centre is now home to 820 finance-related firms, a 22 percent increase year-on-year and 11% increase on FY2019. The high growth reflects the confidence that the financial industry and related sectors have in Dubai as MEASA’s leading financial and FinTech centre of choice.

Consistent with DIFC’s focus on innovation and technology, FinTech organisations continued to be a significant area of growth. A total of 87 FinTech firms joined the Centre’s already impressive technology and innovation ecosystem, boosting the number of licenced FinTech firms by 74% from H1 2019. Notable new financial services firms include TATA Asset Management, Samba Financial Group, Gazprombank, Funding Souq, Brookfield Private Capital (upgrade) and Decimal Factor Middle East, whilst new FinTechs include Ripple and KoFax Me Ltd.

His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai and President of the DIFC, said: “The Dubai International Financial Centre’s ability to maintain a high momentum of growth despite the global repercussions of the pandemic reflects the Centre’s strong fundamentals and its high levels of preparedness to navigate unforeseen crises, supported by Dubai’s broader economic stability, adaptability and spirit of resilience. DIFC’s sustained expansion also proves its ability to offer partners constructive solutions to deal with uncertain circumstances as well as its robust governance, regulatory framework and infrastructure. Furthermore, the strong results demonstrate the trust that stakeholders and partners have in Dubai and DIFC even amidst unfavourable global economic conditions.”

The first half of 2020 saw DIFC FinTech Hive triple in size with the opening of a larger space in Gate Avenue supporting start-ups, scale-ups and entrepreneurs.DIFC continued to advance its comprehensive start up proposition by investing in four FinTech companies. The investments were made as part of the USD 100 million DIFC FinTech Fund launched in 2019 to help start-up and growth stage FinTech companies scale up. The four companies, FlexxPay, Go Rise, NOW Money and Sarwa, focus on payments and robo-advisory.

In January 2020, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, enacted DIFC’s new Leasing Law, providing further protection to property owners and tenants. Later in the year, His Highness also enacted the DIFC Data Protection Law No. 5 of 2020, adding to the DIFC’s reputation as the most advanced data protection, privacy and cyber-security regime in the region. The Board of Directors of the DIFC Authority also issued new Data Protection Regulations, which alongside the updated Data Protection Law, seek to further enhance privacy and security standards in the Centre.

In February 2020, DIFC rolled out its new DIFC Employee Workplace Savings Plan (DEWS), which enables employees working in DIFC-based companies to plan and secure their financial future with ease. DEWS is a progressive end-of-service benefits plan replacing the end of service gratuity scheme with a funded and professionally managed, defined contribution savings plan. By the end of June 2020, 93% of DIFC-based employees were registered under the Plan. Assets under management for the DEWS Plan surpassed US$ 52 million in its first three months of operation. DIFC also initiated a public tendering process to select suitable service providers for a DIFC Master Health Insurance Scheme aimed at providing firms in the DIFC the option to benefit from group rates.

Aligned with Dubai Government’s economic stimulus programme, DIFC introduce a series of fiscal easing initiatives between 1 April and 30 June 2020 to help businesses based at the Centre ensure business continuity. The initiatives included waiver of annual licensing fees on new registrations, a discount on renewal fees for existing licenses, deferred payments for all properties owned by DIFC Investments, a reduction on property transfer fees in the DIFC and the facilitation of free movement of labour between the Centre and other free zones. DIFC also announced rent-free support for retailers based at DIFC-owned assets.

In April 2020, a new Presidential Directive provided greater flexibility to DIFC based employers and increased protection to employees. The move was aimed at providing flexibility for employers, whilst also protecting employees’ jobs and facilitating the rehiring of those made redundant.

In the first half of the year, DIFC welcomed new fine dining restaurants and gourmet concepts including Cé La Vi, Hutong and Shanghai Me, reinforcing its status as a leading lifestyle destination, where business, arts, culture and lifestyle connect.  A new urban dining destination called South Market launched in DIFC, houses 15 kitchens serving dishes from around the world.DIFC also worked with galleries located within the Centre to provide virtual tours, bringing art to people’s homes during the pandemic.