Overview
The Dubai International Financial Centre (DIFC) is the leading financial hub in the Middle East, Africa, and South Asia (MEASA) region. Established in 2004, DIFC operates under its own independent legal and regulatory framework based on common law, making it distinct from the UAE mainland judicial system. The centre hosts over 4,000 registered companies and is home to the largest financial ecosystem in the region.
Key Sectors
DIFC serves firms operating in banking and capital markets, asset management, wealth management, insurance and reinsurance, fintech, and professional advisory services. The zone has expanded to accommodate innovation-driven firms through its fintech accelerator programme, FinTech Hive, which supports early-stage financial technology ventures.
Setup Process
Establishing a company in DIFC requires submitting an application to the DIFC Authority for commercial registration and, where applicable, obtaining a licence from the Dubai Financial Services Authority (DFSA). The process involves selecting an entity type (Limited Liability Company, Recognised Company, or branch), reserving a company name, preparing constitutional documents, and securing office space within the DIFC district. The entire process typically takes four to six weeks.
Costs and Licensing
DIFC offers multiple licence categories. A general commercial licence starts at approximately USD 12,000 per year, while a DFSA-regulated financial services licence involves higher application fees and ongoing capital requirements. Retail licences, innovation licences (for startups), and professional licences each carry different fee structures. Office space within Gate Village and the broader DIFC district ranges from USD 55 to USD 90 per square foot annually.
Benefits
Investors benefit from zero percent corporate and income tax for a guaranteed period of 50 years, 100 percent foreign ownership, full capital repatriation, and no currency restrictions. DIFC’s independent courts and arbitration centre (DIFC Courts and DIFC-LCIA Arbitration Centre) provide a transparent dispute resolution mechanism grounded in English common law.
Ownership Rules
DIFC permits 100 percent foreign ownership across all entity types. There is no requirement for a local sponsor or UAE national partner. Investors retain full control over management and profit distribution.
Tax Regime
Companies registered in DIFC benefit from a zero percent tax rate on corporate profits and personal income. The UAE federal corporate tax introduced in 2023 includes provisions that preserve DIFC’s tax-free status for qualifying activities conducted within the zone. VAT at five percent applies to certain goods and services as per UAE federal law.
Infrastructure
DIFC occupies a 110-acre district along Sheikh Zayed Road in central Dubai. The precinct includes Grade A office towers, Gate Village’s commercial and retail spaces, residential apartments, hotels, and the DIFC Innovation Hub. The zone connects directly to Dubai Metro and major arterial roads.
Ideal Investor Profile
DIFC is best suited for financial institutions, asset managers, private equity firms, fintech startups, legal practices, and consultancies seeking credible regional headquarters with access to a robust regulatory framework and proximity to sovereign wealth funds and institutional capital across the Gulf.