Dubai International Financial Centre

Dubai International Financial Centre

Type	GO
Founded	2002, operations started 2004
Headquarters	Dubai, United Arab Emirates
Key people	His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum His Excellency Abdullah Mohammed Saleh
Website	http://difc.ae/

With its strategic location, independent regulations, common law framework, world-class infrastructure and tax-friendly regime, DIFC provides its member companies an unparalleled opportunity to access the region’s rapidly growing demand for financial and business services. The business and financial services community in Dubai International Financial Centre (DIFC) represents the world’s leading players from 
a wide cross section of financial services and related sectors including:

• Banking and Capital Markets
• Insurance
• Wealth Management
• Professional Services

Apart from financial services, DIFC is also host to several global and regional corporates across a range of industries such as FMCG, petrochemical and technology.

Many of these clients have chosen the centre as the base for their regional headquarters, and are increasingly using it as a platform to expand their regional footprint. Today, the geographical and operational diversity of firms operating from DIFC continues to show the centre’s global stature and its position as the leading international business and financial gateway in the region.

Structure

DIFC is a Federal Financial Free Zone established in accordance with United Arab Emirates Federal Law, and Dubai Law. His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, is the President of DIFC. He presides over the DIFC Higher Board, which was established to oversee the development of DIFC’s three bodies, ensuring they operate in harmony and unity of purpose through stronger levels of coordination without affecting their independence. Appointed by the President on a four year term, the Governor of DIFC proposes strategies, policies and objectives, establishes committees, memoranda of understanding in order to realise the objectives and to regulate the operations of the Centre, in consultation with the Centre’s Bodies.

DIFC Authority

DIFC Authority develops policies and oversees the strategic development, operational management, marketing and administration of DIFC. DIFC Authority is also responsible for the administration of laws and regulations for non-financial services activities, which are not regulated by Dubai Financial Services Authority.

Dubai Financial Services Authority (DFSA)

DFSA is an independent risk-based regulator which grants licenses and regulates the activities of firms conducting financial services in or from DIFC. DFSA’s regulatory regime was developed using principle-based primary legislation modelled closely on internationally accepted standards.

DIFC Judicial Authority

DIFC Judicial Authority (DIFC Courts), the independent, common law judicial system within the Centre, is responsible for the administration and enforcement of justice over all civil and commercial disputes within the Centre.

Independent Legislative System

DIFC has its own set of civil and commercial laws and regulations, and has developed a complete code of law governing financial services regulation. As part of its autonomy, DIFC has created an independent judicial system. DIFC Courts is responsible for the independent and transparent enforcement of justice in DIFC.

The DIFC legislative system is based on Common Law principles and modelled on the laws of England & Wales, and uses English as its official language. DIFC Courts have exclusive jurisdiction over all civil and commercial disputes arising within DIFC and or relating to bodies and companies registered in DIFC, and allow for matters to be heard either within the Courts or, if the parties wish, in the court of another recognised jurisdiction.

Supportive Business Environment

DIFC’s supportive infrastructure and tax- friendly regime make it the perfect base to take advantage of the region’s rapidly growing demand for financial and business services.

As a free zone, DIFC provides a competitive operating environment that offers:

• 100 percent foreign ownership
• Zero percent tax rate on income and profits (guaranteed for a period of 50 years from 2004)
• A wide network of double taxation treaties available to UAE incorporated entities
• No restrictions on repatriation of income and profits
• No exchange controls resulting in greater investment flexibility (free capital convertibility)
• Access to a large pool of skilled professionals residing in Dubai and the region
• A responsive one-stop shop service for visas, work permits and other related requirements

Areas of Business

Attracted by the wealth of opportunities that this region offers, a breadth of financial services institutions and commercial firms operate from within difc

Banks

Maximum business opportunity from one platform

Attracted to the region by its growing wealth, cross-border trade and investment activity, M&A activity and ongoing restructuring by state owned enterprises, corporations and private entities, a large number of banks and brokerages have established a presence in DIFC. DIFC’s legislative and regulatory regime allows banks to offer a range of services, including:

• Commercial Banking
• Investment Banking
• Trade and Export Finance
• Shariah-Compliant Banking
• Correspondent Banking

Market Opportunity

From DIFC, banks are able to service the region’s growing financing needs and support growing sophistication of businesses operating in the region. Recent years have seen the expansion of the corporate sector with more sophisticated financing requirements.

Insurance

Opportunities to tap into a thriving market

DIFC provides access for the global insurance industry to a fast growing and rapidly changing regional insurance market. The MENA insurance market is expected to grow by 25% within the next couple of years2. With the large disparity in comparative insurance regulation across the region with varying standards of compliance, supervision and reporting, DIFC offers industry players a single platform that allows them to offer:

• Insurance Services
• Reinsurance Services
• Takaful and Retakaful
• Captives
• Actuarial Services

Market opportunity

Regional insurance markets are very fragmented which offer the opportunity for consolidation and joint ventures. Indeed, in many cases, international players tie up with regional firms to establish a new entity to cater to the region’s demand for insurance and reinsurance services.

Significantly, DFSA has adopted legislation governing Protected Cell Companies (PCC). A PCC structure is ideal for smaller companies whose insurance risks are not sufficiently large to justify formation of their own captive.

Furthermore, there is a significant opportunity for actuarial companies to service DIFC-based community of insurance companies as the DFSA regulatory regime requires an actuarial report on companies undertaking general insurance business and those with long term insurance business.

Wealth Management

Raise, deploy and manage capital across the region

The region benefits from a vast pool of wealth and a growing appetite for specialist investment products. There is also an increasing demand from high net worth individuals for tailor made solutions which meet their specific and individual wealth management requirements.

DFSA legislative and regulatory regime has created a highly supportive and secure environment for the growth of the funds industry. In compliance with IOSCO Principles, the DFSA Funds Regime allows for all types of activities, including:

• Fund Domiciliation
• Fund Distribution
• Fund Management
• Complimentary Services

Market opportunity

The DFSA Funds Regime was designed to create the ideal investment centre for both foreign and domestic fund managers. The regime is also flexible and evolves with the ever advancing wealth management industry, ensuring that DIFC remains as competitive as any other jurisdiction around the world.

By operating out of DIFC, wealth management firms can tap into and offer advanced asset management products for institutional investors including the world’s largest sovereign wealth funds.

Capital Markets

Access regional liquidity

Traditionally, companies, governments and financial institutions have looked to the international capital markets to meet their financing needs. However, with the advent of the regional stock markets there has been a growing opportunity for IPOs and listings on the regional exchanges. At the same time, regional investors have required liquid and efficient markets to absorb the rapidly growing stock of financial assets accumulating in pensions, life funds, collective investment schemes and other savings vehicles.

DIFC is a platform for investment banks & financial intermediaries to service the capital markets of the region with:

• Underwriting
• M&A Advisory
• Venture Capital
• Brokerage Services

Market opportunity

DIFC is home to NASDAQ Dubai which lists equity derivatives, structured products, sukuk and conventional bonds. Through the exchange, regional and international issuers can access regional and international liquidity. International issuers can access capital from the region, through a primary or dual listing.

Professional Services

Explore an unprecedented professional services opportunity

Business service providers offer critical business infrastructure and necessary services for the growth and development of regulated clients. The region has witnessed a growing demand for professional services firms driven by greater sophistication in financial services requiring specialist advisory work, increased cross-jurisdictional trade and transactions, and the ongoing restructuring by state owned enterprises, corporations and private entities.

DIFC has attracted a wide range of professional service providers including:

• Legal
• Accounting and Audit
• Consulting
• Compliance
• Recruitment
• Risk Management
• Data and Research Providers
• Back Office Solutions

Market opportunity

By locating in DIFC, firms are able to centralise and consolidate their resources used to service the region, thereby gaining a competitive cost of operation. In addition to the growing regional opportunity, business services firms may benefit from the large business and financial captive clientele already located within the centre.

Corporate Headquarters

A jurisdiction for global and regional headquarters

DIFC has a significant number of multinational corporations and regional conglomerates which are utilising the centre to base a head or regional office where centralised strategic leadership and global management of their business activities take place.

Global corporates based at DIFC include Fortune 500 companies and leading players across a broad spectrum of industries, including:

• Financial Services
• Oil & Gas
• Family Office
• Telecommunication • Consumer Goods
• Business Services • Capital Goods
• Manufacturing

Market opportunity

DIFC offers an attractive legal framework and tax offering which, in combination with the UAE’s wide network of double taxation agreements, enables corporates to optimise the tax impact on their global business and benefit from booking revenues in the centre. Global corporates can also use DIFC to run treasury operations, including forex hedging and liquidity management, and as a platform for shared services centres for group companies and business units.

Community and Retail

A vibrant community within the financial district

The centre has experienced a growing demand for business and lifestyle facilities from the professionals working in and around DIFC.

Choose from several distinct zones within DIFC:

• Gate Village located adjacent to The Gate, focuses on art galleries and fine dining outlets
• Marble Walk located beneath The Gate, focuses on takeaway meals, retail convenience and essential services
• The Balcony the terrace surrounding The Gate, focuses on casual dining options
• Centre of Excellence, located in Gate Village 02, focuses on education and professional development operations
• Event venues range from meeting rooms, theatres, outdoor areas, and our well- appointed Conference Centre

Market opportunity

From DIFC, retail and lifestyle firms can access the professional and residential community within the financial district.

Financial District

DIFC Authority headquarters is located in The Gate (below)

External links

• Official Website
• Official Press Page
• Dubai Financial Services Authority
• DIFC Courts
• DIFC LCIA