Introduction to Dubai International Financial Centre (DIFC)
Dubai International Financial Centre (DIFC) is an onshore financial centre, strategically located between the East and West. It offers a secure, efficient platform for businesses and financial institutions to access emerging markets in the region. The quality of DIFC’s independent regulation, common law framework, supportive infrastructure, and tax-friendly regime makes it an ideal base. Companies can take advantage of the region’s growing demand for financial and business services.
Strategic Importance of DIFC
DIFC fills the time-zone gap between leading financial centres like London and New York in the West and Hong Kong and Tokyo in the East. Guided by its core values of integrity, transparency, and efficiency, DIFC plays a crucial role in meeting the financial needs of the region. Additionally, the Dubai Financial Services Authority (DFSA) grants licenses and regulates the financial activities conducted through DIFC. The DFSA’s regulatory regime was developed using principle-based legislation, modeled closely on international standards. It covers asset management, banking, credit services, securities, collective investment funds, custody, trust services, commodities futures trading, Islamic finance, insurance, and exchanges for equities and commodities derivatives.
Global Stature and Growth of DIFC
DIFC is the largest cluster for international financial services between Singapore and Europe. Its business and financial services community represents a wide cross-section of the world’s leading players. Many have chosen DIFC as the base for their regional headquarters.
Moreover, DIFC’s global stature is evident in the geographic diversity of firms operating from the Centre. About 40% of regulated firms come from the Middle East, Africa, and South Asia; 42% from Europe; and 18% from the US and other regions.
Since its establishment, DIFC has not only grown in size but also in the sophistication and depth of financial activity. Furthermore, innovative legislative initiatives that address specific industry needs have driven this growth. These initiatives have met the growing demands of financial services across the region.
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