Dubai is moving forward with a major expansion of its international financial hub, allocating in excess of 100 billion dirhams - roughly $27 billion - to enlarge the Dubai International Financial Center (DIFC). Officials plan to build a new district across from the original DIFC campus, which first opened in 2004.
The expansion has been branded DIFC Zabeel District. According to a presentation on the project, the new area will contribute 17.7 million square feet of space to the current hub, which today occupies 110 hectares - equivalent to about 11.8 million square feet.
Work on the enlarged financial district will unfold in six distinct phases, with the entire program scheduled for completion in 2040. The phased approach is intended to manage delivery across a multi-decade timeline as the city scales capacity to meet demand.
The decision to expand comes as the center has seen rapid growth since it was founded. The DIFC began with a modest footprint of 19 firms and 75 employees. By the first half of last year, that footprint had grown to host more than 7,700 companies and roughly 48,000 employees.
Demand from international firms has been identified as a key driver of the expansion - current facilities have reached capacity as overseas companies seek a presence in the emirate. Dubai's attractiveness to global wealth has increased in recent years, with factors cited by market participants including a low-tax environment and streamlined processes for setting up businesses.
The financial hub currently accommodates a sizable cluster of alternative and wealth management activity. It houses offices for more than 100 hedge funds and nearly 500 wealth and asset managers, reflecting its role as a regional center for investment and private wealth services.
Context and implications
The scale and timing of the DIFC Zabeel District project signal a long-term commitment to growing Dubai's financial services infrastructure. The additional 17.7 million square feet will materially increase office and related capacity within the hub, enabling more international firms and asset managers to establish operations in the city.
Because the expansion is structured as a six-phase program stretching to 2040, stakeholders can expect a staggered flow of new space and associated economic activity over the coming years.