Noor Capital, an Abu Dhabi-based investment company and financial services provider, has completed 100 per cent acquisition of the UK-based financial brokerage House of Borse, boosting cross-continent activity between the key financial hubs.
The move is part of Noor Capital's “ambitious” growth plan over the coming months and will allow it to integrate and boost co-operation in its services and clients, and expand the scope of where it offers a diversified portfolio of products, the company said in a statement on Monday.
The deal is also the largest acquisition of a British organisation by a UAE company in the financial broker market so far in 2023, according to Muhammad Al Qahtani, founder and board chairman of House of Borse.
It represents “the start of a new pattern as Gulf companies have become transcontinental and have global horizons”, as “we used to see European and American companies acquiring Middle Eastern companies”, he said.
The “strategic investment” is an “added value” to Noor Capital, as the UK and Europe are “considered among the most important markets” for capital markets globally, said Mohamed Ghosheh, chief executive of Noor Capital.
“In addition, the company's presence in the UAE and its expansion into other markets provides a diversification factor that enhances its ability to grow and increase its services and customers worldwide,” Mr Ghosheh said.
House of Borse, which increased its revenues by more than 71 per cent in 2022, considers the acquisition to be a bridge between the two regions, “uniting efforts and business sectors in the UK and the Middle East”, its partner and chief executive Wahb Ahmed said.
“This deal comes as an important step to support the investment potential of the two companies and achieve their goals through access to a cross-continent and UK-targeting multi-asset platform in the financial services sector,” he said.
Financial services are crucial to the functioning of an economy, and the need to foster trust among providers and consumers are among the reasons governments oversee the provision of many financial services, according to the International Monetary Fund.
The global financial services market is projected to hit more than $37.4 trillion in 2027, from about $28.1 trillion in 2023, growing at a compound annual rate of 7.5 per cent, data from The Business Research Company shows.
In Abu Dhabi, the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market launched a Private Capital Markets regulatory framework, OTC Leveraged Products and Fatca Tax Legislations to explore the potential opportunities in the financial sector.
The UK, meanwhile, is one of the top financial hubs globally, ranking second, trailing New York and ahead of Singapore, Hong Kong and San Francisco, according to Fortune.
“The regional presence and the diverse experiences of Noor Capital make it an important choice to enhance the activity of trading services and products at House of Borse,” Mr Ahmed said.
Noor Capital was established in 2005, and is regulated by the UAE's Securities and Commodities Authority. It offers global broker account services, including instant access to financial instruments such as stocks, exchange-traded funds, indices, currencies and commodities.
It manages several assets through funds and investment tools, and is expanding its multi-asset capital markets platform into the EU and launching US equity trading services.
House of Borse specialises in online foreign exchange and contract for difference trading for professional and corporate clients in a variety of markets. It connects traders directly to the interbank market, and uses aggregated prices from multiple liquidity providers, including tier 1 banks.