DIFC sees 20% growth in member companies in 2020 despite the pandemic

The financial hub recorded the highest number of annual registrations last year

The total number of companies operating at Dubai International Financial Center increased 20 per cent  to 2,919 in 2020. Sarah Dea / The National

The number of new companies operating at the Dubai International Financial Center grew 20 per cent last year – the highest the financial hub has registered till date.

The total number of companies at the centre reached 2,919 last year with 915 new financial entities, the DIFC said in a statement on Tuesday. FinTech firms more than doubled to 303 during the period.

“DIFC’s best-ever annual performance in its history, achieved in the country’s 50th anniversary year, …reflect the UAE’s and Dubai’s ability to partner with its business communities to facilitate continued growth despite the most challenging conditions we have seen in the international economy,” Sheikh Maktoum bin Mohammed, deputy ruler of Dubai and president of DIFC, said.

The growth in 2020 "enhances the diversity and sophistication of DIFC’s financial ecosystem, further raising Dubai’s status as a major focal point for global finance and a growth multiplier for the industry”, he added.

The DIFC, one of the top onshore financial free zones in the Middle East, aims to triple in size by 2024 and reach assets under management at the centre to $250 billion.

Tata Asset Management, Samba Financial Group, Caixabank and AfricaRe. Ebury, Ripple, Adyen were some of the financial services firms that opened its regional offices in Dubai's financial free zone.

FinTech firms including KoFax Me and Tabby also opened their offices last year.

In 2020, total banking assets booked in DIFC increased 6 per cent to $189 billion. An additional $64bn of lending was also arranged by DIFC firms.

DIFC-based wealth and asset management portfolio managers invested $203.5bn in 2020, up 106 per cent compared to the previous year. The workforce in DIFC community rose 4 per cent to 26,773, according to the latest statistics.

"DIFC’s commitment to driving the future of finance has delivered tremendous growth in the FinTech and innovation sector," Arif Amiri, chief executive of DIFC Authority, said.

"This is an area where we will continue to lead the way in the region given the industry is accelerating its implementation of technologies, recognising strategies and operating models need to change in a post pandemic world.”