20
Apr 2020
The Dubai International Financial Centre better known as DIFC has established itself as an essential hub in the region for conducting financial activities. Due to the various steps taken by the government, this area has also become one of the most sought after place for setting up a business, especially one dealing with finance. Companies from all over the world with a particular focus on the Middle East, Africa and South Asia (MEASA) region come to set up their business in Dubai.
To gain more knowledge about the Dubai International Financial Centre (DIFC), please read our blog All You Need to Know About Company Audit in DIFC.
This independent free zone reached a milestone when it successfully registered more than 100 FinTech companies. There has been a steep rise in the number of FinTech companies in the area as DIFC provides the correct features for the growth of a company and the strategic location of the free zone allows the company to access the surrounding new markets.
The Chief Executive Officer of the Dubai International Financial Centre (DIFC), Mr Arif Amiri, stated that the gradual rise in the number of FinTech companies which are registering themselves in the Free zone is a testament to the various facilities and amenities that the free zone provides to such financial companies. He also clarified as to how the free zones like DIFC play a significant role in alleviating the economy of a country and transform the financial technology ecosystem in the area.
He also assured that DIFC will continue this momentum of growth and will be continuously taking steps to ease the setting up and conducting the business of such companies which will ultimately ensure Dubai's position as one of the leading places for setting up a company which is related to finance.
The Growth of FinTech in the DIFC
The DIFC has seen a growth of almost an increase of nearly 250%, which means that the companies in the FinTech ecosystem have grown from 80 to almost 200 in the last six years. The primary reason for this increase is due to a variable factor such as:
1.Subsidised Licensing
The Dubai International Financial Centre (DIFC) provides subsidies to financial companies and helps in the procurement of multiple licenses. The availability of cost-effective licenses will assist in growing FinTech companies in the area.
2.Access to Fund
One of the most significant factors which attract people in business and entrepreneurs from all over the world is that the free zone provides access to a fund of $100 million to the companies. This fund is managed by Middle East Venture Partners (MEVP) and Wamda Capital and will allow the companies to take advantage of every possible technology in the industry.
3.Accelerator Programmes
These programmes offer assistance to the up and coming FinTech companies and comprise of workshops, funding opportunities, insights about the industry and greater exposure to the markets.
The above points have emboldened the position of the financial sector in the region and have provided substantial growth opportunities to the various Fin-Tech start-ups.
The Future of DIFC
The DIFC now comprises of more than 673 finance-related firms which are an increase of almost 11% in comparison to the last year. This has resulted in the creation of more than 650 jobs which will boost the workforce in the free zone to more than 24,000 individuals. The increasing number of companies and the growth of the various financial companies have led to almost complete occupancy of the infrastructure present in the free zone.
The management of DIFC believe that the focus of the companies in the free zone is on finding new solutions to the problems of the world and to fulfil this they need to develop a blueprint for the sustainable growth of the Dubai International Financial Centre. In the future, to DIFC will cement itself as a place which will assist the financial companies in their growth and will not only prove to be a significant economic sector but will also be heralded as a great place to live work and play.
With a Vision to play a crucial part in driving the future of the financial sector, this free zone offers numerous benefits such as a comprehensive FinTech and Venture capital environment, availability of a cost-effective license, various accelerator programmes, easy to follow the rules and regulations and a dedicated fund for the incubation of start-ups.
If you want to set up a company in the DIFC or want any financial assistance in your already set up company such as auditing, accounting, vat related services etc., Do have a look at the services provided by JAXA Chartered Accountants. JAXA is one of the reputed accounting and auditing companies in Dubai and will help your company to plan for the future of the company properly. For more information on the services, contact us. We will be happy to help.