When we think of the centres of world finance, New York, London, Hong Kong etc. pops in our mind. The list has been the same for decades. Well, enter Dubai. The city is looking to shake up all of that. The Emirates of Dubai is known for its towering glass skyscrapers, palm-shaped artificial islands, and luxury shopping districts. While tourism, real estate, and trade have traditionally helped to supplement the GDP of the oil-rich city, Dubai’s financial services can be considered among the best in the world.
According to the recent news, Dubai has risen the ranks of the Global Financial Centres Index (GFCI) to No. 8 position, representing its highest-ever ranking. The Emirate is the only financial centre within MEASA to appear within the top 10 rankings, placing it alongside other pivotal financial hubs like London, New York, Singapore, and Hong Kong.
How did Dubai achieve this feat?
Well, it all started when Dubai decided to establish a Financial Centre. Let us, deep dive, into this.
All about Dubai International Financial Centre Free Zone (DIFC)
The Dubai International Financial Centre is an exclusive economic zone in Dubai, established in the year 2004. It is a financial hub for the Middle East, Africa, and South Asia (MEASA) markets. The free zone has its own independent, internationally regulated regulator and judicial system, global financial, common law framework, tac-friendly regime, and a large business community.
It was established to oversee the strategic development, operational management, and administration of Dubai’s financial companies. The free zone authority is committed to creating value for its various stakeholders. This commitment is shadowed in the DIFCA’s four-tiered management strategy.
- Dubai Vision - Contribute to Dubai’s reputation as an international business hub by maintaining global standards, developing international relations, corporate and employment creation, and economic development.
- Infrastructure development - Provide world-class physical, legal and regulatory infrastructure, which has been tailor-made for the necessities of the financial and professional services community.
- Financial sustainability - Ensure the financial viability of DIFC and the businesses established in the centre through a programme of resource alignment, financial risk management, and competitive benchmarking.
- Client-centric - Support client growth through authority business process streamlining, service improvement, and enhanced management structures geared towards a superior client experience.
Benefits Offered by DIFC
- 100% foreign ownership
- Zero rates on profits and income for a period of 50 years from inception
- Potential access to the UAE’s extensive network of double taxation treaties
- Freedom to repatriate profits and capital without restrictions
- Global legal system based on Common Law of England and Wales
- A variety of licensed vehicles that may be established with capital structuring flexibility
- Responsive one-stop-shop services for work permits, visas, and other related requirements
- A pool of talented professionals residing in Dubai and the region
- A world-class, independent, governing agency working alongside other financial regulatory agencies located in major worldwide jurisdiction
- A global stock exchange with primary and secondary listings and debt and equity instruments
Primary Sector Focused on DIFC
- Banking & Brokerage Services
- Wealth Management
- Reinsurance & Captive Insurance
- Islamic Finance
- Ancillary Services
- Capital Markets
Areas of Business in DIFC
DIFC hosts a variety of financial and non-financial organisations and retailers from across the corners of the world. The areas of business with the Centre include professional service, banking, insurance, wealth management, and access to capital markets, as mentioned above. The other areas of business include-
- Private banking
- Investment banking
- Fund management
- Asset management
- Wealth management
- Islamic finance
- Professional service provider
- Retail and convenience
- Corporate offices
- Private equity
Business in DIFC
The DIFC authority intends to promote business incorporation and investment in the zone with a simple and straightforward procedure. In one central location the entrepreneurs can access Dubai Customs Inspection, Dubai Customs Operations, Dubai Ports Documentation, Shipping Agencies, Bank Services and Money Exchange and Insurance.
We at Commitbiz can help you set up a business in Dubai International Financial Centre Free Zone by handling all the procedures while you look into your business. Our consultants will make sure the process is hassle-free, and you do not face any challenges. Contact us today for more information.