DIFC unveils flagship Future of Finance report series, publishes first report on the Global Finance and Investment Outlook

Dubai International Financial Centre (DIFC), the leading global financial centre in the Middle East, Africa and South Asia (MEASA) region, in collaboration with its research partner Asia House, reveals the key drivers behind the deep and broad transformation of the global financial services industry across sectors and geographies in a report released today titled The Global Finance and Investment Outlook: Charting technological shifts and new global flows.

The first report has been informed by comprehensive network-based research as well as first-hand perspectives of global financial services leaders who are part of DIFC’s financial services related ecosystem. It highlights global financial trends shaping the flow of capital and talent, reveals emerging growth corridors, discusses geoeconomic uncertainties, and provides an overarching outlook for the future of the industry. 

Commenting on launch of the report series, Salmaan Jaffery, Chief Business Development Officer, DIFC Authority, said: “The global financial services industry is in a new era. Through our Future of Finance series, we will share insights on how the industry is experiencing rapid and far-reaching transformation, fuelled by a redrawing of the global capital landscape. Our inaugural report discusses a shift of the economic centre of gravity eastwards, the emergence of new economic corridors, expectations from talent, and the revolutionary impact of AI. Against this backdrop, Dubai and DIFC hold a distinctive position in the future of finance as the gateway to the region’s emerging economies and a centre for global wealth and capital, strategically positioned between East and West.”

Michael Lawrence OBE, Chief Executive, Asia House, added: “The global financial services sector is evolving rapidly in the face of geographical and structural shifts and advances in technology.  The Future of Finance series examines the impact of these profound changes and the way in which financial services are adapting. Our first report explores the key trends and risks that need to be at the forefront of thinking among global finance leaders. We are delighted to be partnering with DIFC in this important research.”

Strong outlook for finance and investment 

The report states that in an evolving economic environment, financial services firms are looking for an environment that is conducive to scalable growth, with forward-thinking regulations, a strong legal framework, strategic location and high-growth opportunities backed by skilled talent and innovation readiness. Shifts in capital allocation and growing investor interest in private markets are also explored with Dubai positioned favourably due to its status as home to the region’s highest concentration of wealth. DIFC provides financial services companies access to USD 4trn worth of private and family wealth, and is playing an important role in converting these large pools of regional wealth into investable capital.

The report explores global monetary policy, emerging market opportunities and new growth corridors that are reshaping the financial services industry. It discusses the impact of artificial intelligence (AI) and digitisation, Islamic Finance, sustainable finance, private credit, and far-reaching influences of geoeconomic relations between major economies of the east and west. 

Navigating uncertainties

Providing an overview of the geoeconomic shifts and uncertain market conditions impacting the world, the report gives an account of risks to navigate. These include interest rate movements, inflationary pressures, protectionism and bridging of the talent gap in the financial services sector. It also highlights the movement of wealth across geographies, the factors causing these shifts, and implications for the financial services sector. 

Emerging trends

AI and emerging technologies are expected to have the biggest impact on finance. AI is set to contribute USD 15.7trn to the global economy by 2030 and the financial services sector is expected to reap the most benefits - unlocking new revenue streams, improving customer experience, enhancing operational efficiency, and reducing costs. 

One of the biggest challenges to AI adoption is inconsistent standards of regulation. The transformative potential of AI in financial services can only be realised with clear and robust regulations. 

Dubai is showing leadership in this space, and a good example is DIFC introducing the world’s first Digital Assets Law. The Centre also announced a first-of-its-kind Dubai AI Licence and the ‘AI as a Service’ model with both initiatives envisioned to propel Dubai’s supportive and growth-enabling innovation ecosystem.

Over the last 20 years, DIFC has expanded into a dynamic global ecosystem that supports innovation, collaboration, and sustainable development. As Dubai launched the Dubai Universal Blueprint for Artificial Intelligence, DIFC accelerated the momentum for the integration of artificial intelligence within industries and strengthened its position of being the largest AI, FinTech and innovation ecosystem in the region.