Dubai’s DIFC registers highest ever revenue in 2022

Dubai International Financial Centre (DIFC) has registered its highest ever revenue, totalling Dhs1.06bn, in 2022.

Combined revenue grew 18 per cent year-on-year from Dhs897m in 2021. It topped Dhs1bn for the first time.

The total number of new companies registered in DIFC also surpassed the annual milestone of 1,000 for the first time ever, with 2022 recording a total of 1,084 new firms.

Meanwhile, the centre’s 2022 operating profit increased 19 per cent to reach Dhs679m from Dhs573m recorded during the previous year.

I reviewed @difc 2022 annual results which recorded exceptional growth. 1,084 new companies joined, a 20% increase from 2021, bringing the total number to 4,377. Combined revenues exceeded AED 1B for the first time since establishment & achieved operating profits of AED 679M. pic.twitter.com/3XiEcmp2y8

— Maktoum Bin Mohammed (@MaktoumMohammed) February 20, 2023

Total assets crossed Dhs15.3bn, while the number of active registered companies rose 20 per cent from 3,644 in 2021 to 4,377 in 2022.

“DIFC’s exceptional performance in 2022 demonstrates Dubai’s growing role as a major driver of innovation, entrepreneurship and next-generation technologies in the region’s financial sector,” said Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Prime Minister and Minister of Finance of the UAE; and President of the Dubai International Financial Centre.

“DIFC’s growth significantly contributes to the goal of the Dubai Economic Agenda D33 to transform Dubai into one of the world’s top three cities for business.”

Read: Sheikh Mohammed launches Dubai Economic Agenda, ‘D33’ aims to double size of economy in 10 years

Key numbers

Total banking assets booked in DIFC stood at $199bn, while an additional $166bn of lending was also arranged by the centre’s firms.

Innovation drives #DIFC’s record-breaking 2022 growth.
Take a look at our full results: https://t.co/k9tBEaSVY0#DIFCAnnualReview #Innovation #AnnualResults pic.twitter.com/W63MuR5nGa

— DIFC (@DIFC) February 20, 2023

DIFC-based fintech and innovation companies attracted over $615m in 2022, becoming the fastest growing sector in the centre, with 291 new clients.

A total of 686 fintech and innovation firms, ranging from startups to global unicorns, are now based in the financial centre.

The number of Dubai Financial Services Authority (DFSA)-regulated financial entities also grew to 590, with 89 regulated financial service firms authorised in 2022, up from 51 in 2021.

Firms joining DIFC in 2022 include ADIB, BIC-BRED, Continental Group International, FinTech unicorn Darwinbox, Jefferies, Habib Bank AG Zurich, Lord Abbett, 1291, Prevensure, Proton, Sculptor Capital Management Hong Kong Limited, 3S Money, United Bank of Africa Group and Volante.

Read: Habib Bank AG Zurich opens branch in DIFC to expand footprint

Read: Asset management firm Lord Abbett to open its first Middle East office at DIFC

The centre also recorded its fastest rate of employment growth, with workforce numbers rising 22 per cent year-on-year to 36,083.

“The UAE’s globally recognised management of the pandemic, strategic investment and business-friendly structural reforms, long-term residency schemes, and innovation-friendly regulatory framework have helped draw entrepreneurial talent from every corner of the world,” added Essa Kazim, Governor of DIFC.

“Our focus in 2023 will be to accelerate the future economy by building upon our already strong position as a preferred gateway for businesses looking to expand into and grow within the massive Middle East, Africa and South Asia market and attracting more investment into the UAE’s financial sector.”​​​​​​​

Initiatives

DIFC announced the formation of the first DIFC Family Wealth Centre to attract family businesses and high net worth individuals from the region and across the world to establish a presence in the emirate.

Also read: DIFC launches region’s first global Family Business and Private Wealth Centre

DFSA expanded its digital assets regimes for DIFC clients to include recognised cryptocurrencies.

In terms of events, DIFC hosted FinTech Week to discuss the future drivers of growth in financial services spanning themes such as Web 3.0, metaverse, NFTs, crypto, blockchain, payments, embedded finance, open banking, RegTech, and ESG. It will also play host to the Dubai FinTech Summit in 2023.

The centre introduced the world’s first Venture Studio Launchpad focused on ubiquitous finance and digital asset technologies, as well as hosted its annual flagship FinTech Hive Investor Day in the metaverse for the first time.

A wide range of lifestyle focused activations took place in DIFC throughout the year, including Dubai Watch Week, Dubai 30×30 Fitness Challenge and Bloomberg Square Mile.