DIFC confidence holds through regional strain

Arabian Post Staff -Dubai

Dubai International Financial Centre has reaffirmed the resilience of its financial ecosystem, saying global clients across banking, insurance, wealth management and innovation remain committed to Dubai and the UAE despite heightened uncertainty across parts of the Middle East.

Essa Kazim, Governor of DIFC, said the past few weeks had tested regional markets, but had also underlined the depth of confidence among institutions operating from the centre. “Over the past few weeks, countries in the Middle East have been navigating a period of regional uncertainty together. During these times, the true strength of DIFC has been our clients and community,” he said. “What defines us is a shared belief in long-term opportunities that Dubai and the UAE offer to access the 77 markets across the Middle East, Africa and South Asia.”

The statement comes as Dubai seeks to consolidate its role as the region’s dominant financial hub, supported by rising company registrations, expanding wealth management activity and a growing base of global institutions using the emirate as a platform for cross-border capital flows. DIFC’s message is aimed at reassuring investors that the fundamentals driving its expansion remain intact even as geopolitical risks weigh on parts of the wider region.

DIFC ended 2025 with 8,844 active registered companies, a 28 per cent increase from the previous year. New active company registrations rose 39 per cent to 2,525, while the centre’s workforce grew to 50,200 professionals. Combined revenue rose 20 per cent to AED2.13 billion, and net profit increased 28 per cent to AED1.48 billion, giving the financial district further capacity to fund expansion and infrastructure.

The centre’s regulated financial services ecosystem has also deepened. DIFC hosts 1,052 regulated firms, including regional headquarters for more than 290 banks and capital markets institutions, 135 insurance and reinsurance companies, 70 brokerage firms and more than 500 wealth and asset management entities. Its hedge fund cluster has expanded to more than 100 firms, reflecting a broader shift by global investment managers seeking a base closer to Gulf sovereign wealth funds, family offices and high-net-worth clients.

Wealth and asset management remains one of the strongest pillars of the centre’s growth. More than 500 firms in the segment now operate from DIFC, alongside 1,289 family-related entities and 1,115 foundations. The concentration of private capital has strengthened Dubai’s appeal to asset managers, alternative investment firms and advisory businesses looking to serve clients across the Gulf, South Asia and Africa.

DIFC has also pushed into technology-led finance. Its AI, FinTech and innovation-focused community reached 1,677 entities in 2025, up 35 per cent, supported by the DIFC Innovation Hub and Dubai AI Campus. The expansion of this segment is important for Dubai’s longer-term positioning, as financial centres increasingly compete not only on regulation and tax efficiency, but also on data governance, digital infrastructure and access to skilled technology talent.

Dubai’s global standing has improved alongside this institutional growth. The city moved to seventh place in the Global Financial Centres Index in 2026, its highest ranking, placing it within the top tier of international financial hubs. The ranking reflects gains in business environment, infrastructure, human capital and professional services, while reinforcing Dubai’s ambition to move into the world’s top four financial centres.

The reaffirmation of confidence also comes against intensifying competition among Gulf financial centres. Abu Dhabi has expanded its own asset management and investment platform, Riyadh is pushing ahead with its headquarters programme and capital market reforms, and Doha has sought to strengthen its financial services offering. Dubai’s advantage rests on DIFC’s established legal framework, common-law courts, regulatory transparency, lifestyle appeal and long track record as a base for international finance.

Regional uncertainty has not stopped financial institutions from diversifying their Middle East and Asia strategies. Gulf banks and investment firms are widening links with markets such as Hong Kong and mainland China, while global asset managers continue to allocate more senior staff and resources to the Gulf. Dubai’s location between Asian, European and African trading hours remains a structural advantage for firms handling capital across multiple regions.