In a brochure on its website, the DIFC said that from 1 February this year it has removed the $8,000 (£6,501, €7,454) application fee, which asset managers pay to set up in centre.
Describing the fees as “now more cost effective than ever”, the DIFC is also offering fund houses a free two-year annual license to operate in the DIFC – something which previously cost $12,000 per annum.
Meanwhile, other costs such as DFSA application fee of $5,000 and the $1,000 data protection fee remain at the same levels as last year.
The move could be seen as a response to the increasing number of companies in the region setting up shop in the DIFC’s closest rival the Abu Dhabi Global Market (ADGM).
Launched in September 2015, the ADGM registered and licensed close to 160 companies in its first year, the most notable being Aberdeen Asset Management.
Other regional hubs such as Qatar’s Financial Centre (QFC) Authority are also vying to attract foreign companies to their financial free zones.
Strategy 2024
However, a spokesperson for the DIFC told International Adviser that “it isn’t about discounting. It’s about a new pricing structure to reach the next level of client that were targeting as part of our 2024 strategy”.
The strategy was announced in June 2015 and sets out how the financial centre will over the next decade. One of the aims of the DIFC is to triple in size by 2024.
The spokesperson added that the offer is available for limited time only on a first come first serve basis but stopped short of revealing an end date.
Annual report
Last month, the centre published its annual report which showed the DIFC had seen “double digit growth in registered firms since 2015″.
It has 1,648 active registered companies, including 447 financial firms and received a record high of 100 applications for licenses from financial firms.
One of the main highlights last year, said the DIFC, was HSBC Bank Middle East (HBME) relocating its head office from Jersey to Dubai, meaning HBME is now lead-regulated by the Dubai Financial Services Authority (DFSA).
“The move has reinforced the attractiveness and competitiveness of the UAE economy to international players in the banking and financial services sector, further strengthening the credibility of the DIFC’s regulatory regime,” it said in a statement.
