Banking on Dubai

Dubai’s growth continues apace in terms of its stature in the global financial marketplace. The Global Financial Centres Index (GFCI) published by the City of London recently announced Dubai as the financial centre most likely to gain in importance in the next few years.

The emirate was also destination of choice where organisations responded they would be most likely to open offices in the next few years. The research conducted in association with Z/Yen Ltd, is the first to report on a new biannual index of competitiveness for 46 world financial centres.

Ian Scott, director of the UK and Ireland representative office of Dubai Tourism and Commerce Marketing (DTCM) comments on the emirate’s emergence as the world’s financial hot spot; “Dubai’s growing popularity in the financial sector can be attributed to a number of initiatives which have instilled a sense of confidence in global investors. We are constantly delivering more sophisticated services and in response there has been a pleasing influx of big banks moving operations out to the emirate.”

Dubai has firmly established its reputation as the rising star of the global financial landscape. The continuing diversification away from oil and gas has paved the way for an environment which is growing in attractiveness for financial service providers. New industries are the prime focus of the emirate’s fast expanding economy and financial services and capital markets were earmarked in Sheikh Mohammed’s 2015 Dubai Strategic Plan as the core element to sustaining this growth.

In the current climate of economic uncertainty, the outlook is still very positive for Dubai. High oil prices have helped shield the Gulf from the fallout of the US financial crisis and liquidity constraints in the region have had little impact on economic growth as regional central banks have intervened to maintain liquidity in the banking sector.

Dubai’s bold vision to establish itself as a real competitor to the global financial centres of London, Hong Kong and Singapore has been spurred on by the creation of Dubai International Financial Centre (DIFC). The DIFC offers a highly attractive investment environment to its participants and is attracting a growing number of western and eastern banks owing to strong incentives such as zero percent tax rate on income and profits, 100 percent foreign ownership and no restrictions on foreign exchange or capital/profit repatriation. Not only does DIFC offer a tax free trading environment, the whole development is thriving with a vast array of leisure facilities such as art, retail, restaurants and residential blocks.

Another core driver has been the establishment of the international stock exchange Dubai International Financial Exchange (DIFX) which sits at the heart of the DIFC development. This has encouraged financial traffic to flow via new routes away from the more traditional financial centres leading to a shift in trade patterns towards the Middle East.

Dubai represents a market of opportunity and exciting growth potential and as other markets falter in the midst of global economic turmoil, the emirate’s efforts to cement its position as a serious contender to New York and London looks to be paying off.

Dubai’s economy has been and continues to be resilient during the global economic crunch. The Emirate is still attracting international banks and foreign direct investment.

For further information about Dubai, log on to Dubaitourism.ae.