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Dubai Financial Centre new registrations will rise by nearly 40% in 2025

Dubai's International Financial Centre DIFC announced on Thursday that new company registrations at the hub increased by almost 40% last year to a total of?1,525 - largely due to an influx of hedge funds and other?firms?.

Hubs such as DIFC are attracting more companies, as Gulf countries diversify away from oil and invest billions of dollars in sectors such financial services.

According to a presentation, the total number of active registered firms at the centre was around 8,840 by the end of last year's December, an increase of 28% over 2024.

There are 557 asset and wealth management firms that have set up or expanded their base in Dubai and Abu Dhabi over the past few years as the UAE has attracted high-net worth individuals who are drawn by factors such as tax-free status and relative ease of business.

DIFC Governor,?Essa Kasim, told the media that the geographic breakdown of firms in the center was a bit higher.

Authorities announced last week that the DIFC will undergo an expansion of?around $27billion by 2040. The hub has reached its capacity and is looking to welcome new companies.

When asked about funding, Kazim replied that DIFC had a net profit of $400 million in the last year. "That is the future cash flow", which will contribute to the expansion.

The market is definitely open. "In the past, we have issued sukuk. That's a possibility."

(source: Reuters)