DIFC revises the cost of doing business to stimulate further expansion and growthPress Release 12 Dec 2010 10:13 am
- DIFC encouraging its 780 existing companies to continue the expansion of their businesses from the Centre
- Increased focus on attracting new players looking to benefit from the DIFC’s position as a global business and financial hub
- Revised cost of doing business covers office rents and several operational fees
The Dubai International Financial Centre ("DIFC"), the financial and business gateway between the Middle East, Africa and South Asia region ("MEASA") and the world, announced today the details of its new revised pricing structure which is designed to enable new and existing companies operating from the Centre to continue the growth and expansion of their businesses.
The new pricing structure, which is in line with DIFC revised strategy is expected to stimulate economic growth by creating a cost competitive business environment in the global financial sector. The revision includes office space rents as well as operational fees.
In announcing the DIFC's revised prices, Abdulla Al Awar, CEO of the DIFC Authority, commented: "The number of companies managing businesses from the DIFC has grown to 780 in just six years. Our new pricing structure demonstrates our commitment to support our clients with their growth plans. We are confident that the overall cost of doing business in the DIFC continues to be competitive with other leading international financial centres, while it reinforces our efforts to remain an integral and important contributor to the UAE’s economy."
Marwan Ahmad Lutfi, Deputy CEO and Head of Business Development at the DIFC Authority, said: “In the past, clients would typically have a representative team in the UAE with the core workforce based overseas. Over the past year, we witnessed the migration of global business desks and the consolidation of divisions, in a growing trend that saw companies utilise the DIFC as their global hub for financial and business operations. As part of our commitment to strengthening our partnerships with our valued clients, we have ensured that our fees analysis was conducted according to best practice and the highest standards of governance and transparency. We have also taken into consideration the importance of long term visibility of operating costs to both sustain clients and help them plan efficiently for their continuous growth”.
The DIFC has already started applying the revised set of operational fees. The amended rental charges will come into effect starting January 2011 along with new documentation and commercial terms that have been modelled on globally accepted real estate and commercial standards. (Appendix 1: Details of DIFC’s new rent metrics)
The DIFC's revision of operational fees has focused on reducing the administrative cost associated with establishing and growing a client’s presence in the Centre, thus creating an efficient and business-friendly environment. All services provided by the Centre (visa clearance, parking and company registrations) remain benchmarked competitively. (Appendix 2: Details of new operational fees.)
It is important to note that third party owners of office property in the DIFC have property lease management agreements with the Centre. A total area of approximately 2 million square feet is expected to be delivered by third party developers over the next 18-24 months. The revised DIFC rent structure is applicable on DIFC-owned buildings. The DIFC expects a beneficial spill-over effect for clients establishing presence in upcoming commercial properties in the Centre.