Increased global investment in Dubai International Financial Centre
Increased global investment in Dubai International Financial Centre
Dubai International Financial Centre (DIFC) spread over 110 acres in Dubai is increasingly attracting global investment. There has been increased activity with the influx of more global firms in DIFC. DIFC's services and facilities are on par with New York's Manhattan and Tokyo’s Ginza district. DIFC is a geographical and legal jurisdiction connecting the all global exchanges including NASDAQ, LSE and HKEX. The Centre focuses on six main industries within the financial services sector: Banking, Capital Markets, Asset Management and Fund Registration, Reinsurance, Islamic Finance, and Back Office Operations.
Home to Dubai International Financial Exchange, commonly referred to as Dubai Stock Exchange, the DIFC is the preferred hub of foreign firms looking to set up base or extend operations in the Middle East. The free trade area offers investors 100% foreign ownership rights and zero tax rates. DIFC presently commands the highest prices for offices in Dubai, averaging US$12,668 per square metre. This premium property commands 30 - 40% more than the prevailing rates at other commercial zones like Business Bay, Sheikh Zayed Road, Tecom and Dubai Marina.
Prices at DIFC and other business sectors in Dubai
The DIFC maintains the price lead in the residential market as well. The prices of studios at the free zone average US$ 641 square feet; for one bedroom apartments, the median rate is US$ 767 square feet. Given the current growth of Dubai economy and the vast potential of the area, we forecast a growth of 25% in real estate prices at Dubai International Financial Centre (DIFC).
| Key growth promoters at DIFC
1. Location The DIFC is adjacent to Dubai World Trade Centre and is located at the start of Sheikh Zayed Road. Its easy accessibility to Dubai Metro, Dubai International Airport and Jebel Ali Seaport and other prime residential and trading districts like Deira and Bur Dubai makes it an investment hub. The zone's potential is further enhanced by the presence of crucial financial think-tanks like Dubai International Financial Exchange (DIFX). 2. Regulatory Authority All financial and ancillary services undertaken in, or from the Dubai International Financial Centre (DIFC) are regulated by the Dubai Financial Services Authority (DFSA). The supervisory body ensures that the zone is one of the best regulated financial centres in the world. (For more on DFSA Laws, click here) When compared other business zones in Dubai, the DIFC permits 100% capital and profits repatriation. This in fact has boosted prices which are currently equivalent to the existing rates in Manhattan, New York. 3. International Standards and amenities The DIFC is a fully fledged ‘onshore' capital market comparable to Hong Kong, London and New York. As a new global jurisdiction for financial institutions, the DIFC has a highly attractive investment environment, including:
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 Dubai Metro trial runs commence (View construction map -  )
Dubai metro trial runs commenced on May 15. RTA is conducting the technical trials of Dubai Metro on the test track at Jebel Ali, in a sector extending 11km from Ibn Battuta Station to JAFZA Station. The train can run at a maximum speed of 90km/h on the test track. The first batch of Dubai Metro carriages, consisting of 10 cars, arrived in Dubai recently from Japan and five cars have already been transported to Jebel Ali Metro Station.
Emaar Properties has announced its intention to construct low-cost residential units to widen its reach into affordable housing for the region's impoverished. In the wake of this move, the Dubai-based real estate company plans to acquire a firm specializing in social housing that might launch projects in Morocco, India, Pakistan, Egypt and the Palestinian territories. The move marks a departure for Emaar, which has so far concentrated on high-end real estate projects. Market Analyst Merrill Lynch has downgraded Dubai Islamic Bank from ‘buy' status to ‘neutral' due to the corruption probe being faced by the CEO of its real estate subsidiary, Deyaar. "We are downgrading DIB due to our concerns about an embezzlement case at its real estate associate Deyaar, which it owns 41 per cent of," say Merrill Lynch analysts, including Munir Shahin. An increase in bad loans at the bank is also a worry, they said. |
