Dubai financial sector hub set for multibillion-dollar expansion
The Gulf’s business and tourism hub, home to the world’s tallest building, has seen a post-pandemic property boom
[DUBAI] Dubai International Financial Centre (DIFC) is set for a multibillion-dollar expansion, the Dubai Media Office said on Tuesday (Jan 27), as the emirate seeks to make it one of the world’s largest financial hubs.
The development announced on Tuesday and dubbed “Zabeel District” has a total value of US$27.23 billion, the Dubai Media Office said. It will have capacity to host 42,000 companies and will be delivered by 2040, DIFC said, providing office, residential, retail and hospitality space and education and arts facilities across an area roughly the size of 120 American football fields.
The financial hub expansion will be connected to the Dubai Loop, a projected underground high-speed transport network announced by Elon Musk and UAE authorities, and will be able to host flying taxis and autonomous vehicles.
Dubai expanding
The plans for the hub expansion are part of a major infrastructure and real estate push by Dubai, adding to another DIFC expansion set to be completed by the first quarter this year that will boost office space by 600,000 square feet.
The Gulf’s business and tourism hub, home to the world’s tallest building, has seen a post-pandemic property boom, fuelled by foreign investment and government-led residency reforms, with its population ballooning past the four million mark last year, according to government estimates.
As Gulf countries diversify their economies away from oil, investing billions in sectors like financial services and infrastructure, hubs such as DIFC have been attracting an increasing number of firms.
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The centre hosted more than 8,000 active registered companies as at the end of November, including hedge funds, whose number has more than doubled since 2024.
Developers are betting on solid demand for office space amid a continuous influx of companies lured by lower taxes, convenient time zones, and the presence of some of the world’s biggest sovereign wealth funds.
First phase expected to be delivered in 2030
The project will be one of the biggest in the emirate, alongside a new metro line and a US$35 billion expansion of the Al Maktoum Airport.
The first phase is expected to be delivered in 2030 and will include six new office towers, two residential towers, a hotel and an AI Campus.
“The project will be supported through a combination of internal resources, future development revenues, and other financing structures as needed,” the DIFC said. REUTERS
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