The Emirate’s role as a key trade hub is well-established, but a subtle transition has taken place, whereby Dubai is earning credentials as a world-class centre of financial services. What are the factors influencing this sea-change – and which are now putting ‘clear blue water’ beyond Dubai and the traditional financial centres of the GCC? Associate Editor Zenifer Khaleel investigates…
Since the turn of the century, Dubai has been rising steadily as the undisputed entrepreneurial capital of the Middle East. Due to its integrated infrastructure and openness to business, it attracts investors, world-class advisors and, of course, entrepreneurs. Recently, it has opened the flood gates to investment companies and the banking sector, as it attempts to become the key financial capital of the Middle East. Many global financial institutions are rushing to open regional offices here and a number of the major names are already present.
Unlike other sectors such as oil or construction, the development of a financial centre is an evolutionary process of strategically building sophisticated human and institutional infrastructure to foster economic growth. It requires the careful management of both the demand and supply of financial services. Participation of domestic and international entities must be encouraged while aggressively improving the financial ecosystem in parallel to carefully monitoring and controlling systemic risk.
“Dubai has made the transition from a metropolis to a teeming megalopolis, and very smoothly at that. This ease of transition has been facilitated by an unstinting focus on the basic fundamentals of successful commerce and entrepreneurial development, ” says Siddharth Balachandran, Managing Director of the BUMGA Group, based in Dubai.
“The Dubai government has understood, (with great clarity if I may add) that for holistic success, it is imperative that the financial service sector be promoted and supported unhindered. Though the development index of any city is generally dominated by improvements in the capital goods, construction and the manufacturing sectors, the glue that binds all these pivotal sectors together is the financial services sector. Dubai has realised this very early and hence established entities such as the DIFC, DMCC and the likes. Naturally, with the importance of the financial services sector, it is even more important for this sector to be manned by the right personnel, in terms of mindset, ideals, talent and qualification. I believe that the next decade is going to be a glowing testament to this ‘fundamentals first’ approach very rightfully adopted by Dubai, ” he adds.
Stocks have worst ever inauguration day drop!!
Jan. 20 (Bloomberg) -- U.S. stocks sank, sending the Dow Jones Industrial Average to its worst Inauguration Day decline, as speculation banks must raise more capital sent financial shares to an almost 14-year low.
State Street Corp., the largest money manager for institutions, tumbled 59 percent after unrealized bond losses almost doubled. Wells Fargo & Co. and Bank of America Corp. slumped more than 23 percent on an analystâs prediction that theyâll need to take steps to shore up their balance sheets. The Dowâs 4 percent slide was the most on an Inauguration Day in the measureâs 112-year history, according to data compiled by Bloomberg and the Stock Traderâs Almanac