DIFC Announces a Record-breaking 7,700 Registrations in H1 2025

Dubai International Financial Centre (DIFC), a leading global financial hub, recorded its best-ever performance in H1 2025, setting a new benchmark for company registrations and ecosystem growth.

To further highlight DIFC’s record-breaking results in 2025, the total number of active registered companies jumped from 6,153 to 7,700 in H1 2025, which marks a 25% year-on-year increase. Of those, 1,081 were newly active registered companies that joined between the first six months – a 32% increase on the same period in 2024.

The number of professionals working in DIFC rose from 43,787 to 47,901, marking a significant 9% increase from the previous year.

DIFC’s Unstoppable Growth

A global leader in financial services, Dubai stands beside cities like London, New York, and Paris in terms of financial prosperity. This expectation is reflected in DIFC’s exceptional growth so far this year. Driven by strategic initiatives and unmatched scale in the region, DIFC advances the city’s position as a global financial hub.

Presently, DFSA, the independent regulator for business undertaken from or within DIFC, regulates a total of 980 entities. This number is up by 17% compared to last year. Meanwhile, the total financial services authorisations grew by 28% since last year, reaching 78 in H1 2025 compared to 61 in H1 2024. As for DIFC’s banking and capital markets cluster, the sector saw a 17% growth rate with a total of 289 companies operating in the sector, up from 247 a year ago.

Dubai is also home to the highest concentration of private wealth in any Middle Eastern city, which further supports growth in DIFC’s wealth and asset management cluster, the biggest in the region. The number of firms in the sector increased by 19% to hit a total of 440, up from 370. Currently, DIFC is home to over 85 hedge funds, a 72% increase over the last 12 months.

In terms of AI, FinTech, and innovation hubs, DIFC’s ecosystem continued to draw the attention of technology-led firms. Compared to H1 2024, FinTech and innovation companies surged by 28%, reaching 1,388 firms, reinforcing Dubai’s position as one of the world’s top five hubs for FinTech in the latest Global Financial Centres Index.

DIFC is also popular for its flagship events, such as the Dubai AI Festival and Dubai FinTech Summit, which brought in over 20,000 participants from over 120 countries. Dubai continues to foster innovation and excellence with its most recent event Ignyte, a growth platform targeting 100,000 founders, start-ups, and investors who redeemed benefits exceeding AED 182 million.

To ensure that Dubai continues to be a beacon for innovation, technological advancements, and financial prosperity, the city took measures to foster experts and skilled professionals to maintain its growth. For instance, the DIFC Academy collaborated with 32 active partners and reputable universities to support the objectives of Dubai’s Education Strategy 2033 and the Dubai Economic Agenda D33.

The DIFC Academy has become a preferred choice for world-class universities and has successfully seen 46,103 learners complete programs. DIFC has also launched the ‘1 Million Learners’ initiative under the Sustainable Finance Catalyst to equip one million individuals with sustainability knowledge by 2030 and drive long-term impact, with the support of 30 founding partners.

Finally, DIFC’s legal and regulatory frameworks, known for their best-in-class legislation, are constantly evolving to keep pace with global development. During the first half of 2025, the Centre proposed DIFC regulatory updates to enact new Variable Capital Company Regulations. This move seeks to significantly enhance investment structuring and asset management options for proprietary investment in DIFC.

His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance of the UAE, and President of DIFC said:

“The unprecedented results that DIFC continues to achieve across all fronts are a direct reflection of the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai - a vision focused on positioning Dubai at the forefront of the world’s most advanced financial centres. Dubai has entered a new and greater phase of growth, and these results highlight the competitiveness, attractiveness, and global confidence it enjoys. We firmly believe the future holds even more opportunities, and we will continue to strengthen DIFC’s capabilities and its ecosystems that foster innovation, agility, and business growth.”

Private Market Firms Flocking to Dubai and Abu Dhabi

As the UAE continues to position itself as a global business hub, international interest is not only confined to Dubai International Financial Centre (DIFC). International private-market investment firms managing over $700 billion have established offices in the UAE, with key players like EQT, Eurazeo, Baron Capital, and Silver Point setting up in Abu Dhabi and Dubai.

This shift reflects a move from viewing the Gulf solely as a fundraising hub to a destination for capital deployment, driven by slow deal flow and high interest rates in the West. Ranking 10th globally for FDI inflows in 2024, Dubai is fast becoming a global financial hub, with $45.6 billion in FDI—a 48% increase year-on-year.

As more financial firms relocate, demand for Grade-A office and premium residential real estate is surging. Dubai recorded a 23% increase in property transactions in Q1 2025, led by off-plan sales.

With favorable regulations, strong infrastructure, and a strategic location, Dubai competes with cities like London and Singapore. The city is also climbing toward Tier-1 status, ranking 5th globally based on infrastructure, governance, and quality of life.

DIFC’s Record-Breaking 2025 Highlights UAE’s Financial Rise

While much of the media spotlight is on DIFC’s record-breaking H1 2025 performance, the trend of firms flocking to the UAE extends well beyond this single financial zone. Other free zones like DMCC in Dubai and ADGM in Abu Dhabi have also experienced remarkable growth in recent months, attracting global firms and driving demand across real estate and commercial sectors.

Mirroring DIFC’s success, the Dubai Multi Commodities Centre (DMCC) saw a 7% year-on-year increase in registrations from American-based companies, following President Trump’s visit to the UAE in May 2025. The visit resulted in landmark agreements totaling $200 billion across key sectors like AI, aviation, defence, and energy.

According to the CEO of DMCC, this visit marked a pivotal moment in deepening economic cooperation, reflecting the growing economic alignment between the UAE and the United States.

To build on this momentum, DMCC held its ‘Made For Trade Live USA’ series in cities like Brooklyn and Miami, engaging over 150 American business leaders.

In 2024, bilateral trade hit $34.4 billion, setting the stage for robust American business expansion in Dubai’s free zones. Presently, DMCC hosts more than 700 US companies, almost half of all American firms operating in the UAE, and over 26,000 companies in total.

This rise in American business presence is expected to fuel demand for real estate as executive housing and premium office space near hubs like DIFC and Business Bay will be in demand.

This trend boosts investor confidence and reinforces Dubai’s status as a key global destination for business, innovation, and real estate investment.

Abu Dhabi’s Business Boom Brings Real Estate Windfall

In Q2 2025, Abu Dhabi experienced a sharp growth in rentals and occupancy in its office market, driven by surging demand for Grade A space, specifically in key business districts and free zones. To highlight, occupancy in these premium assets nears 100%, supported by modern infrastructure, ESG compliance, and tenant-focused services.

Grade A offices outperformed older, less-equipped buildings, creating a two-speed market. As firms adjust post-COVID, right-sizing strategies favor efficient, high-quality spaces, further boosting top-tier office demand. Abu Dhabi Global Market (ADGM) led much of this expansion, with a 32% rise in registered firms and 245% growth in assets under management in 2024.

Major institutional players such as BlackRock and Morgan Stanley have now established operations in ADGM, drawn by proximity to Abu Dhabi’s $2 trillion sovereign wealth ecosystem. The broader non-free zone office market has also recovered significantly, with occupancy rising from 79.1% in 2020 to 90.3% in 2024.

Simultaneously, Abu Dhabi’s residential sector is thriving. Off-plan prices surged from AED 487/sq.ft in 2019 to AED 1,127 in 2025, with ready homes averaging AED 1,086. Rental yields remain strong at 5.9%–6.3%, attracting long-term investors.

With resilient fundamentals and expanding infrastructure, Abu Dhabi is cementing its position as a leading regional destination for living, working, and investing.

Record FDI in 2024 Set the Stage for 2025’s Boom

While 2025 has seen a major influx of businesses and capital, this momentum was already building in the previous year—providing a strong foundation for future growth.

In 2024, the UAE achieved a record of $45.6 billion in foreign direct investment (FDI) inflows, marking a 48% year-on-year increase and representing 37% of all FDI into the Middle East and North Africa, according to the UNCTAD World Investment Report 2025. This milestone ranked the UAE 10th globally for FDI inflows and 2nd worldwide for newly announced greenfield FDI projects, with 1,369 projects launched totaling $14.5 billion.

This growth reflects the UAE’s long-term investment strategy and business-friendly policies. Between 2015 and 2024, the country’s annual FDI inflows grew at a 10.5% compound annual growth rate, with cumulative FDI stock reaching $270.6 billion.

Key sectors driving greenfield FDI include software and IT services (11.5%), business services (9.7%), renewable energy (9.3%), oil and gas (9%), and real estate (7.8%). Notably, renewable energy projects attracted $1.3 billion, supporting the UAE’s clean energy targets for 2030.

This continuity from 2024 into 2025 suggests that the UAE’s emergence as a financial and business powerhouse is not an isolated spike—but a steadily accelerating trajectory.

The National Investment Strategy 2031 aims to double cumulative FDI inflows to AED 2.2 trillion by 2031. UAE leaders emphasize the country’s strategic vision to become a top global investment hub, reinforcing the link between economic development, stability, and long-term growth.

Conclusion

Dubai and the UAE have firmly established themselves as premier destinations for global finance, innovation, and investment. The city’s central location, tax neutrality, cutting-edge technology and bolstered approach to innovation make it the ideal hub for success. Its most recent record-breaking milestone, DIFC H1 2025 performance is just the tip of the iceberg.

This, paired with the surge in new companies, rising employment, and a thriving FinTech and wealth management ecosystem, has all of the city’s business hubs, including DMCC, standing as a pillar of Dubai’s ambitious growth strategy. Meanwhile, parallel success in ADGM and Abu Dhabi’s expanding business districts further highlight the capital’s growing global relevance.

Backed by visionary leadership, favorable regulations, and robust infrastructure, both Dubai and Abu Dhabi are attracting international capital, private-market firms, and top-tier talent. With strong momentum across its two key cities, the UAE is well-positioned for sustained, long-term economic leadership, reflecting the nation's broader transformation into a global financial powerhouse.

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