Dubai has climbed to its highest ranking in the Global Financial Centres Index (GFCI), claiming the seventh spot among the world’s most influential financial hubs.
The emirate rose by four places to secure a record high for a financial centre in the broader Middle East, Africa and South Asia, the London-based GFCI’s 39th edition of global rankings released on Thursday showed.
Dubai, one of the world's fastest-growing financial, leisure and tourism hubs, along with Tokyo, broke into the top 10 after consistent improvement over the past few years. The rise underpins the emirate’s position as an increasingly vital component of the global financial system.
“Dubai’s rise to seventh place in the Global Financial Centres Index reflects the strength of our economic vision and the confidence the international financial community places in our ecosystem,” Sheikh Maktoum bin Mohammed, First Deputy Ruler of Dubai, Deputy Prime Minister, and Minister of Finance, said in a statement.
“Confidently, Dubai gains more strength and leadership, guided by a proactive vision that does not wait for the future, but actively shapes it.”
Produced by the think tank Z/Yen Group, the index benchmarks the competitiveness of 137 financial centres globally, surveying 34,000 financial services professionals worldwide.
The data for the latest index ranking, however, was compiled before the conflict in the Middle East, and the relative stability in the leading centres in the index may be affected by the outcome of those events, according to the GFCI.
After being ranked No 22 in the GFCI’s half-yearly rankings released in March 2023, Dubai improved to 11th spot in September last year.
That consistent rise puts the emirate on track to achieve its goal to be ranked among the top four global financial centres by 2033, in line with its ambitious Dubai Economic Agenda (D33).
DIFC anchor
The sustained momentum of the emirate’s financial ecosystem is anchored by Dubai International Financial Centre (DIFC), one of the fastest-growing onshore financial hubs of the broader Middle East, North Africa and South Asia region.
Dubai’s consistent progress in the index is an “outstanding milestone” that underpins its ambition of “expanding influence on the international financial stage”, said Essa Kazim, governor of DIFC.
“Anchored by DIFC’s world-class infrastructure and forward-looking regulatory environment, we continue to strengthen Dubai’s position as the region’s leading global financial hub, attracting top-tier financial institutions, innovators and talent.”
DIFC is among the key planks of Dubai's growth ambitions and is aligned with the Dubai Economic Agenda, the initiative known as D33, which aims to double the size of the emirate's economy to Dh32 trillion over the next decade and establish Dubai among the top global cities.
Earlier this year, Dubai unveiled a Dh100 billion ($27 billion) expansion plan for the second phase of DIFC, also known as, DIFC Zabeel District, which on completion, will boost the centre’s capacity to 42,000 companies and house 125,000 professionals across more than 1.5 square kilometres of floor space.
Launched by Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, the DIFC Zabeel District is the first phase of the new district and is set to be completed by the end of this decade, at a cost of Dh20 billion.
The DIFC added a record number of companies last year, driven by a sharp rise in the number of asset and wealth managers in the financial hub. It registered 1,924 new companies in the 12 months to the end of December, a 28 per cent annual increase.
The number of active registered companies at the end of last year surged to 8,844, employing more than 50,000 people in the centre.
Future prospects
In terms of financial hubs with future prospects of growth and rising influence over the next two to three years, Dubai, with a score of 127, remained on the top. Singapore, with 109 points, Riyadh (54), Astana (43) and Abu Dhabi (42) make up the other top five centres.
Hong Kong, Shanghai, Seoul, Mauritius, Taipei, Kigali, Casablanca, GIFT City, Ho Chi Minh City, Tokyo and London were the rest in the GFCI’s top-15 future prospects list.
The GFCI also ranked Dubai as the region’s only financial centre in the top 10 for being globally competitive on business environment, financial sector development, human capital and infrastructure.
The emirate’s FinTech, government and regulatory sectors, professional services and trading were all ranked among the top five globally. Dubai’s insurance and finance sectors climbed to ninth place while its Banking sector was ranked No 14 globally.
“Our strategy focuses on fostering innovation, attracting leading global financial institutions and creating an environment where businesses can grow and thrive,” Arif Amiri, chief executive of the DIFC Authority, said. “As we continue to expand our platforms, whether in FinTech, capital markets, wealth management or insurance, DIFC will play the leading role in advancing Dubai’s ambition to become one of the world’s top four financial centres.”
