Dubai: Dubai International Financial Centre (DIFC) reported a net profit of Dh421 million for the year 2016 with 14 per cent increase in the actively registered companies operating from the centre.

At the close of the year DIFC reached 1,648 active registered entities compared to 1,445 companies in the same period last year. This included 447 financial services firms, up 10 per cent from the 408 recorded in December 2015. In addition, 976 non-financial services firms registered in the DIFC, up 17 per cent from the 835 non-financial firms last year, as well as 211 retailers, up 12 per cent from the 189 retailers last year.

DIFC now has a total workforce of 21,611 professionals, a 9 per cent increase from 2015, putting DIFC firmly on its path to execute the 2024 strategy. This will see the Centre triple in size by deepening core client synergies, building relevance in key global sectors, and facilitating trade and investment across the South-South trade corridor. These initiatives will be supported by the continued enhancement of the Centre’s physical and regulatory infrastructure.

“The year 2016 was marked by significant global shifts, which brought challenges but also opportunities. Our strong financial results show that DIFC is resilient. We continue to demonstrate how our offering goes beyond being the region’s leading financial centre, by investing in leading concepts and developments to become a world-class business and lifestyle destination,” said Essa Kazim, Governor of DIFC and Chairman of DIFC Authority Board of Directors.

DIFC’s financial services firms represent a cross-section of all major geographies, with 35 per cent originating from the Middle East, 17 per cent from Europe, 16 per cent from the United Kingdom, 11 per cent from Asia, 11 per cent from the United States, and 10 per cent from other countries.

“Last year, more than 50 per cent of new companies that joined in the DIFC from the southern hemisphere with China, India and South East Asia contributing significantly. We expect significant share of future growth to come from Asia and potentially the region taking over Europe, UK and US, in terms of number of companies operating from the DIFC, said Kazim.

Last year, high level delegations from DIFC made multiple visits to China, Europe, the UK, India, Africa, the US and countries in the Middle East. Overall, the team participated in 122 events and received 32 international delegations at the centre, driving knowledge sharing and demonstrating thought leadership across the globe.

For the year ahead, the DIFC officials expect the outlook to be robust with significant growth in the number of firms operating in the Centre. “We received 100 applications from the financial services firms to set up their operations in the DIFC. While some of them have completed their incorporation process, some are still pending. We have a very strong pipeline of companies aspiring to join the DIFC,” said Kazim.

Deepening core

DIFC continues to work on improving its international legislative and regulatory framework, and providing an ecosystem and a wealth of expertise across all financial sectors.

In the Asset and Wealth Management space, DIFC welcomed the Bank of Singapore and Pictet as new clients last year. In addition, the establishment of the Wealth Management Working Group set the foundations for future knowledge and best practice exchange for DIFC clients.

The Centre further broadened its client portfolio in 2016, particularly in the Bank and Capital Markets sector. DIFC welcomed a number of new firms to set up operations, including the Bank of Palestine, Ahli United Bank Limited (AUBL), a 100 per cent subsidiary of Ahli United Bank, which was the first bank in the GCC region to receive the Category 1 license from the DFSA, and Zenith Bank (UK), one of Nigeria’s leading commercial banks. In addition, the Agricultural Bank of China (ABC Bank) was selected as the very first RMB Clearing Centre for the region.

Insurance sector in the DIFC has grown with key new clients including HDFC Life which is the first Indian insurance firm to join the Centre, and Starr Underwriting Agents. In addition, Jardin Lloyd Thompson expanded its operations to better service HNWIs.

In terms of Corporate and Service Providers, 2016 saw the DIFC welcome new entities, including Exxon Mobil, Mayer Brown LLP and Larsen & Toubro as well as over 20 family businesses which registered their firms in the Centre to structure and manage their wealth.