DIFC-based firms post $12.8bn in deposits
Dubai, May 28, 2012
Deposits out of the Dubai International Financial Centre (DIFC) by regulated entities have grown at an average annual rate of 39 per cent in the past three years to reach $12.8 billion at the end of the first quarter of 2012, a report said.
DIFC, the financial and business hub connecting the region’s growth markets with the markets of Europe, Asia and the Americas, today (May 28) issued its Monetary and Financial Report covering the period 2008 to Q1 2012, updating the market on the monetary and financial activity of entities registered in the Centre during that period.
Loans and advances of DIFC’s regulated entities rose over the past 3 years at an average annual rate of 40 per cent to reach $14.7 billion, while assets under management at DIFC-based companies remained steady, and recorded $8.1 billion at the end of the first quarter of 2012.
Abdulla Mohammed Al Awar, CEO of DIFC Authority said: “As one of the global financial hubs, it’s natural that we are observing an influx of new companies from around the world, especially banking and financial services firms, who are attracted by the vast opportunities the region offers. The numbers are also testament to the successful growth in the breadth and depth of financial activity within DIFC due to the diverse services provided by the regulated firms.
“Our effort toward enhancing DIFC’s legal and regulatory framework as well as its physical infrastructure positions DIFC as an ideal platform for regional and international growth.”
As of March, the DIFC community comprised of 861 active registered companies (322 regulated and 539 non-regulated companies); 2 per cent up on 2011 numbers.
Dr Nasser Saidi, chief economist, DIFC said: “DIFC is the only international financial centre that collects and publishes financial activity data of its registered entities. What the data clearly shows is that DIFC entities have witnessed continued real growth over the past three years, despite the international financial crisis and regional events.
"Deposits and credit growth rates of DIFC-based companies have also been substantially higher compared to those of the GCC area banks. We expect higher growth to continue as DIFC-based companies expand their activities further."
DIFC is home for 21 of the world’s top 30 global banks, eight of the top global money managers, six of the 10 largest insurers and six of the top 10 law firms in the world.
The DIFC Monetary & Financial Statistics are collected from different sources. DIFC related data and estimates were provided by the DIFC Economics team and the Dubai Financial Services Authority (DFSA). Other information, including data on deposits, credits, and assets under management outside the DIFC, were collected from monetary and statistical authorities’ websites and Reuters’ databases. – TradeArabia News Service