Profiling Dubai International Financial Centre

The Ruler of Dubai ratified a new series of legislative amendments and enhancements on the first of August 2006 that further augment the importance of the Dubai International Financial Centre (DIFC).

DIFC is strategically increasing its profile on the world stage as it moves towards market dominance in fields such as institutional finance and this is a general profile of Dubai’s most ambitious free zone to date for our readers.

Officially opened in 2004 the Dubai International Financial Centre free zone encapsulates a significant element of the future vision for Dubai that its ruling family has: namely the creation of an environment for advancement and economic progress for Dubai, the United Arab Emirates and the Middle Eastern region.

Situated in a strategic position between New Dubai and Bur Dubai on a purpose built and self contained 110 acre site, Dubai’s International Financial Centre already features state of the art office and conference complexes with the very latest in security and technology; meanwhile significant developments of desirable residential real estate are under construction within the greater free zone district to allow those working within DIFC access to some of the most well appointed and luxurious property in Dubai.

Over time the Ruler of Dubai has ambitions for DIFC to put Dubai on a financial centre par with the likes of the City of London, New York and Hong Kong and to position Dubai as the centre of economic excellence and development in the entire Middle Eastern region.  Dubai will become the gateway to the Middle East for trade, capital, investment and financial activity and be globally recognized as the most significant financial centre of operation in the region according to His Highness Sheikh Mohammed Bin Rashid Al Maktoum’s vision.

Currently the Dubai International Financial Centre has seven subdivisions of focus and these are: -

1) Banking services – from investment banking to private banking to corporate banking
2) Capital markets including but not exclusively restricted to equity, instruments and derivatives trading
3) Asset management which includes fund registration
4) Insurance/reinsurance
5) Islamic finance
6) Back office or ‘business processing operations’
7) Supplementary services from accounting to recruitment

The rate at which global financial institutions have been lining up for licenses to operate within DIFC is absolute testimony to its macro importance in the world of finance.  The latest companies to receive licenses include Goldman Sachs and CCL Compliance Consultants and these are appended to the long list of players already fully operation from within DIFC.

And finally in our profile of the Dubai International Financial Centre, here is an overview of the benefits participants gain through achieving a license to operate from within the free zone; income and profits are tax free, 100% foreign ownership of companies within the zone, restriction free foreign exchange, unhindered capital and profit repatriation, excellent security, supervision, compliance and ethical standards enforced, highly sophisticated business environment.