Page 429 - Sustainable Cities and Communities Design Handbook

Business Ventures and Financial Sector Chapter j 19 399

gateway for capital and investment. DIFC’s ambition is to become the global
hub for Islamic finance.
The city of Dubai has an established track record of realizing projects in
safe environment and is perceived as one of the fastest growing cities in the
world. It has a well-diversified economy based on international trade, banking
and finance, information and communication technology, tourism, and real
estate. In 2005 oil contributed less than 6% of Dubai’s GDP and in 2010, it was
less than 1%. This economic diversification is continuing with the establish-
ment of new industries, private sector growth, and increased regional eco-
nomic integration.
DIFC seems to fill the gap between the financial centers of Europe and
South East Asia, the region comprising over 42 countries with a combined
population of approximately 2.2 billion people. This region, stretching from
the western tip of North Africa to the eastern part of South Asia had (until
2004) been without a world class financial center.
DIFC aims to meet the growing financial needs and requirements of the
region while strengthening links between the financial markets of Europe,
the Far East, and the Americas. DIFC’s mission is to be a catalyst to facilitate
the mobilization of capital for regional economic growth, development, and
diversification by performing as a globally recognized financial center. The
center attracts regional liquidity back into investment opportunities. It has
attracted international firms such as Merrill Lynch, Morgan Stanley, Goldman
Sachs, Mellon Global Investments, Barclays Capital, Credit Suisse, Deutsche
Bank, and many other leading international financial institutions. DIFC intends
to be the regional gateway for investment banks as well as other financial
institutions who wish to establish underwriting, M&A advisory, venture cap-
ital, private equity, foreign exchange, trade finance, and capital markets
operations to service this large and relatively untapped market.
The objectives of DIFC are the following:
l to attract regional liquidity back into investment opportunities within the
region and contribute to its overall economic growth;
l to facilitate planned privatizations in the region and enable initial public
offerings by privately owned companies;
l to give impetus to the program of deregulation and market liberalization
throughout the region;
l to create added insurance and reinsurance capacity, 65% of annual pre-
miums are reinsured outside the region;
l to develop a global center for Islamic finance (serving large Islamic
communities stretching from Malaysia and Indonesia to the United States).

DIFC focuses on the following main financial services sectors:
l banking and brokerage,
l capital markets,