The financial sector in Dubai will be expanding at a gradual pace and only if there is enough demand for new platforms and services, according to the local financial district’s governor.
The state-owned Dubai International Financial Centre (DIFC) began expanding its operations in 2019. It’s currently in the process of establishing a new district that will reportedly have 6.4 million square feet of office space.
Essa Kazim, governor at DIFC, stated:
“It is on plan but it’s going to be done on a gradual basis, in phases. We will start with phase 1A, B, C and then we build according to the needs.”
Kazim, who’s also chairman at Borse & Dubai Financial Market, added:
“We are not going to build unless we (have an) affirmed tenant that is interested in taking this space.”
DIFC is one of the largest and most established finance centers in the Middle East region. It regularly hosts international banks, major insurance services providers, and investment companies.
Kazim noted that the DIFC’s leased area presently stands at about 4.83 million square feet, which represents a 3% year-on-year increase.
The center’s 10-year plan, which was announced in 2014, is reportedly on track and the relevant key performance indicators (KPIs) are being met, Kazim confirmed.
DIFC currently has 2,347 active firms, which is a 14% increase from 2018. The DIFC signed up 493 new firms last year, which is around 13% more than it registered in 2018.
Last year, the DIFC also added over 2,000 jobs, which is a 9% year-on-year increase, Kazim revealed.
The center’s 2019 operating and net profit remained flat year-on-year at roughly $139 million and $119 million respectively. Its consolidated revenue stood at $228 million, which is a slight 2% increase from 2018.
