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BANKING ON FINANCE


DUBAI, ABU DHABI AND QTAR ARE ALL VYING TO BECOME  THE REGION'S FINANCIAL HUB. IS THERE ROOM FOR ALL OF THEM

The Gulf one of the world's rechest regions per capita and vast oil reserves have necessitate the creation of an increasingly sophisticated financial sector for which several cities are vying to become the hub. Bahrain's capital Manama was long the Gulf's leading banking centre but its importance has ebbed over the past two decades following rapid economic development in the |United Arab Emirates and Qatar.


Today Dubai International finance Centre (DIFC )and Qatar Financial Centre (QFC) founded in 2004 and 2005 respectively plus the recently established Abu Dhabi Global Market  (ADGM) are vying are offshore free zones with the useal benefits such a status confers; QFC has opted for a slightly different model being an onacial services sector exists to support the real economy in terms of production and consumption. It serves to facilitate efficient capital allocation support economic growth and ultimately wealth creation says Richard Teng CEO of the Financial Service  Regulatory Authority of Abu Dhabi Global Market. The Middle East Africa and Asia will be key engines of growth for the world in the next few decades.


The strong macroeconomic fundamentals underpinned by population dynamics urbanisation and resource scarcity will create huge demand for financial services and financial inter-mediation.

A robust legal framework is critical to succeeding a financial hub. ADGM's Registration Authority financial services regulatory Authority and ADGM courts are all independent and as such enable registered companies to conduct business according to international norms based on common law.

It has also eschewed one size fist all approach to regulation to take into account business risk and complexity which should keep red tape to a minimum while still maintaining standards of conduct.

ADGM, which launched full operation in October 2015 offer a full range of company structure's including trusts, funds special purpose vehicles and limited liability partnerships .

   

90+

institutions have registered with Abu Dhabi Global Market

1,539

active firms at Dubai International financial centre including

424

financial services firms

More than 90 institution have registerd with the free zone including aberdeen asset Management and Macquarie capital Abu Dhabi the capital of the UEA is an internatinally recognised business hub with a robust and sophisticated financial services sector that is home to highly capitalised and stable bank a large concentration of institution and private wealth and some of the world largest soverign wealth funds says teng.

The establishment of ADGM by federal Decree aims to support Abu Dhabi ambition to be international financial center.

ADGM is initially focused on private banking asset and wealth management and family office while it also aims to become the Gulf's financial technology hub creating a regulatory laboratory to allow fin tech companies to develop test and launch products.

ADGM is harnessing Abu Dhabi strength as a wealth centre give an increasing preference among asset and risk managers for activities to be conducted closer to home to facilitate a more consolidated approach and having better control says teng.

"ADGM aims to enhance and increase the size of Abu Dhabi financial services sector and contribution toward a sustainable GDP."

  

"The financial services sector exists to support the real economy in terms of production and consumption.

It serves to facilitate efficient capital ultimately wealth creation'.