DIFC To Attract 500 Firms In Three Years

by Lorys Charalambous, Tax-News.com, Cyprus

26 July 2005

At least 500 firms are expected to set up shop in the Dubai International Financial Centre in the next three years, according to a senior official from the DIFC.

Speaking to Gulf Daily News, Aseem O. Kabesh, DIFC's chief business development officer, predicted that the impending opening of the Dubai International Financial Exchange (DIFX) within the DIFC would be a significant lure for blue chip companies from around the world.

"In three years of operations I see we (DIFC) would have a minimum of 500 firms, between financial and non-financial institutions. Around 60 per cent, if not more, would be financial institutions," he told the paper.

The DIFX, which is a wholly-owned subsidiary of the DIFC, is set to commence trading on September 26. A wide range of financial instruments will be traded on the market's electronic platform and the DIFC board is looking to attract listings from companies across the Middle East and the Indian sub-continent as well as from Europe.

Established in September 2004, the DIFC offers firms 100% foreign ownership, no taxes on income or profits, no foreign exchange controls and no restrictions on the repatriation of capital or profits and has already attracted many big names in the financial services and banking fields, such as Barclays, Merrill Lynch and AIG.

Recommended