The chairman of the Abu Dhabi Global Market said the capital’s financial centre under construction on Maryah Island has not been designed to compete with the Dubai International Financial Centre, the de facto financial hub in the Middle East.
“We are extremely proud of the significant economic growth achieved by the UAE since its formation in 1971,” Ahmed Al Sayegh told King Juan Carlos of Spain and his delegation yesterday. “As a result, our nation can already easily sustain two financial centres, and there are ambitious plans for further economic growth. So I would like to emphasise that the Global Market and DIFC will not compete. In time, the two centres will complement each other, making the UAE the financial capital for the region.”
Established in 2004, the DIFC has attracted representatives from the world’s leading investment banks, including Goldman Sachs, Morgan Stanley, Credit Suisse and Deutsche Bank.
In the aftermath of the financial crash of 2008 and the subsequent debt crises, however, many of these investment banks reduced their numbers in Dubai and redeployed staff to Doha and Riyadh where there were more deals to be done. Abu Dhabi has also attracted some of those bankers and the emirate is counting on the Global Market, announced last May, to boost its financial services industry.
The financial free zone will have its own courts system and tax incentives to encourage international investment banks to set up shop. Mr Al Sayegh said yesterday that the Global Market has appointed legal advisers to develop the hub’s legal and regulatory framework, and that he is still in the process of recruiting a team to run the centre.
“We have established a number of financial institutions here that have become well-known all over the world,” he said. “The establishment of the financial centre is therefore the next logical step in Abu Dhabi’s evolution. It will also, very importantly, support the further development of the financial services sector in Abu Dhabi as a key element in delivering the Economic Vision 2030 – the government’s economic and investment policy road map for securing the prosperity of future generations.”
King Juan Carlos is in the UAE this week in his first visit in almost six years, seeking to open doors for Spanish companies specialising in infrastructure development.
mkassem@thenational.ae
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