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New Study Underscores Dubai's Growing Stature as a Leading International Financial Centre
Dubai International Financial Centre Ranked Seventh
December 22, 2009-The International Financial Centres Competitive Assessment Report, a competitive study of 15 key global and regional financial centres, was released today by the Dubai International Financial Centre (DIFC) in association with KPMG in the UAE
DIFC conducted the study and commissioned KPMG in the UAE to independently assess the Report. The Report highlights the progress made by Dubai in establishing itself as a leading International Financial Centre.
This study was conducted with the objective of benchmarking DIFC's and Dubai's 'competitiveness' against that of other leading financial centres around the world and the region. One of the notable aspects of the Report is the evaluation of DIFC as a separate financial centre with individual competencies.
DIFC was ranked seventh in the Report on the strength of its world-class legal and regulatory standards; independent regulator and judiciary system; and strong value offering for financial businesses. DIFC's infrastructure and business environment, custom-designed for the financial industry, also helped Dubai receive an overall competitiveness score higher than global centres like Paris and Dublin.
The rankings of the 15 financial centres evaluated in the Report are as follows:
- Singapore
- London (UK)
- New York (USA)
- Hong Kong
- Zurich (Switzerland)
- Tokyo (Japan)
- Dubai International Financial Centre (UAE)
- Frankfurt (Germany)
- Luxembourg
- Dubai (UAE)
- Paris (France)
- Dublin (Ireland)
- Doha (Qatar)
- Manama (Bahrain)
- Riyadh (Saudi Arabia)
The top five rankings in the Report broadly reflect the rankings of other leading global financial centre ranking surveys. However, the results of the Report show that Singapore and Hong Kong, Asia's leading international financial centres are posing a stiff challenge to the supremacy of leading international financial centres in the West. Although centres like London and New York have performed strongly, the perceived impact of the financial crisis and consequent events seem to have impacted their overall competitiveness.
HE Ahmed Humaid Al Tayer, Governor of the Dubai International Financial Centre said: "Under the patronage of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, a strong collaborative relationship between DIFC, Dubai and UAE has served to enhance the prominence of Dubai, UAE and the Middle East in the global financial services industry. The Governor further added: "The global financial crisis has put the spotlight on the fundamental competitive strengths that enable financial centres to weather adverse economic conditions and sustain growth. The results of the Report underscore the interdependent relationship between DIFC, Dubai and UAE. While Dubai and the UAE have gained from DIFC's achievements in the international arena and its strong commitment to global best practices, DIFC has benefited immensely from the infrastructure created by Dubai and the UAE.
Under the visionary leadership of His Highness Sheikh Maktoum bin Mohammed Bin Rashid Al Maktoum, Deputy Ruler of Dubai and President of DIFC, we remain confident of achieving many more milestones by capitalising on this symbiotic relationship".
Vijay Malhotra, Chairman and CEO of KPMG in the UAE said "Post the financial crisis financial centres around the globe are focusing on rebuilding confidence and activity by providing an ideal platform for financial services. DIFC's performance on the International Financial Centres Competitiveness Assessment Report is a reflection of its leading soft and hard infrastructure. The report indicates the increasing importance of financial centres like Singapore, Hong Kong, and Dubai.The results of the report clearly highlights that, leveraging on DIFC's immense potential, Dubai is all set to play an important role in the global financial services industry map."
The Report assesses the competitiveness of financial centres using an evaluation model that measures both 'capability' factors or immediate benefits provided by a financial centre, and 'performance' factors, which reflect historical or long-term results. The focus on 'competitiveness' puts the spotlight on the potential of a centre to excel in the future and not just on its current status.
The final rankings were based on a composite score derived from three pillars - Industry Opinion, Industry Performance, and Capability Measurement - that determines overall competitiveness. The Industry Opinion pillar is based on the Global Financial Centres Index 6 (GFCI) published by the City of London, while the Industry Performance pillar is based on the Financial Development Index 2009 (FDI) published by the World Economic Forum (WEF). The Capability Measurement pillar is based on an assessment model developed to measure the growth potential of a financial centre in the future based on a three factors including business environment, cost of doing business and cost of living.
View the The International Financial Centres Competitive Assessment Report
Source: Dubai International Financial Centre (DIFC)
Dubai Financial Market to acquire Nasdaq Dubai for $121m
December 22, 2009--Dubai Financial Market, PJSC (DFM) announced today that it has made an offer to Borse Dubai Ltd. (Borse Dubai) and The Nasdaq OMX Group Inc. (NASDAQ OMX) enabling DFM to acquire 100% of Nasdaq Dubai.
Artic
The aim of this transaction is to widen DFM's asset classes for investors, to allow the company's shareholders to benefit from the future growth of Nasdaq Dubai and to further develop closer operational links between the two exchanges. The ownership structure will create a dynamic new force in the region's capital markets.
The offer, which has been approved by Borse Dubai and Nasdaq OMX , is valued at $121m and comprises $102m in cash and 40 million DFM shares.
Source: AME Info
NASDAQ OMX Participates in Combination of NASDAQ Dubai Into Dubai Financial Market; Accepts Shares in DFM
Combination Will Enhance Retail Investor Access and Provide Greater Choice for Local and International Issuers
December 22, 2009--In a release issued earlier
today by The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) under the same
headline, please note that the first sentence of the paragraph below
the bullet points should begin, "The new structure, which is subject to
DFSA approval..." rather than, "The new structure which satisfies DFSA
regulations," as originally reported. The corrected release follows:
The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) today announced an agreement with Borse Dubai Limited (Borse Dubai) which will change the ownership structure of NASDAQ Dubai to become a wholly owned subsidiary of the Dubai Financial Market (DFM). DFM is a long-standing, highly successful exchange in Dubai, and is home to many of Dubai's domestic listings. This agreement reflects NASDAQ OMX's commitment to participate in the continuous development of the financial markets in Dubai.
Under the agreement and new ownership structure:
-- NASDAQ Dubai, in which NASDAQ OMX currently holds a 33 1/3 percent equity stake, will become a wholly owned subsidiary of DFM.
-- In return, NASDAQ OMX will receive a 1 percent ownership interest in DFM, a publicly traded company controlled by Borse Dubai. The market capitalization of DFM as of December 21 was $3.9 billion.
-- NASDAQ OMX will retain the right to nominate one NASDAQ Dubai director.
-- NASDAQ Dubai will continue to exist as a distinct exchange under DFM's ownership, still registered in Dubai's free-trade zone, DIFC, and regulated by the DIFC regulator, DFSA. DFM will continue to be regulated by SCA, the UAE national regulator.
-- NASDAQ OMX's existing technology and trademark licensing agreements with Borse Dubai and NASDAQ Dubai will remain unchanged.
The new structure, which is subject to DFSA approval, will enable DFM and NASDAQ Dubai to benefit from each other's regional and international strengths, creating a more powerful capital markets hub that is unique in the Gulf Cooperation Council (GCC) countries. The two exchanges intend to integrate their exchange technology to benefit from cost synergies and to provide enhanced functionality and participant access.
"The combination of the two Dubai exchanges has long been seen as a preferred way forward. It will create greater efficiencies from a systems perspective, enabling retail investors to better access NASDAQ Dubai and providing issuers with a choice of commercial and regulatory structures," said Adena Friedman, Chief Financial Officer, NASDAQ OMX and Board Member, NASDAQ Dubai. "We remain committed to participating in the development of the capital markets in the GCC region and we believe that this transaction will enable Dubai to structure the financial markets for future growth."
The transaction will result in a pre-tax, non-cash impairment charge of NASDAQ OMX's investment in NASDAQ Dubai. The initial total investment in February 2008 consisted of a $50 million cash contribution, in addition to specific technology and trademark rights, and was at the time valued at $128 million. It has a current carry value of $120 million. As of December 21, 2009, a 1 percent ownership interest in DFM is valued at approximately $39 million. NASDAQ OMX has determined that there is a pre-tax, non-cash impairment charge, currently estimated at $81 million, subject to confirmation by a third-party valuation. When the restructuring transaction described above is completed, NASDAQ OMX may record a gain or a loss based on the then-current market price of DFM shares and the then-current carrying value of NASDAQ OMX's NASDAQ Dubai investment.
Source: NASDAQ OMX
Saudi expects $18.7bn budget deficit in 2010
December 22, 2009-Saudi Arabia's 2010 budget projects a SR70bn ($18.7bn) deficit, as the Arab world's largest economy focuses on development and job creation, Bloomberg has reported. The government expects to spend SR540bn, 14% above its target for last year, though below actual spending of SR550bn.
'This is another expansionary budget demonstrating commitment to sustainable growth with a minute deficit due to high spending in 2009,' said John Sfakianakis, chief economist at the Banque Saudi Fransi. 'It shows the government's resolve to spend heavily to prevent the economy from slowing down further.
Source: AME Info
Dubai government may be restructured, says report
December 22, 2009--Dubai may bring independent 'associations and authorities' under government control as part of a 'major restructuring process', Gulf News reported, citing a government official it didn't identify.
Dubai Health Authority and the Roads & Transport Authority are among 40 institutions that may be put under direct government control, the newspaper said, adding that the plan has not been finalized yet.
Source: AME Info
Dubai World to present 'standstill' deal, says report
December 22, 2009--Dubai World will present a standstill offer to banks in early January as it attempts to restructure about $22bn of debt, Bloomberg has reported, citing three bankers who attended a presentation on the matter yesterday.
Dubai World told lenders it needs time to allow its assets to recover from the drop in value following the credit crunch, said the bankers, who declined to be identified because the meeting was private. Some assets may be sold over time to repay debt, they said.
Source: AME Info
Guide To Issuing Sukuk From The DIFC
December 21, 2009--The Dubai International Financial Centre Authority today announced the release of the "DIFC Sukuk Guide" - a comprehensive introduction to various sukuk structures, as well as legal and regulatory information on issuing sukuk from the DIFC and listing sukuk on NASDAQ Dubai.
The guide reflects the leading role that DIFC plays in global Islamic finance. Not only is it home to the largest exchange for sukuk by listed value, worth more than $16bn, it provides an operating, listing and incorporating environment that is world class, and ideally suited to structured Islamic, and non-Islamic, products.
"Promoting continued growth and development in the dynamic field of Islamic finance is a key priority for DIFC and is the reason behind our continued efforts to enhance the legal, regulatory, operating, listing and human capital infrastructure within DIFC to nurture this sector," said Abdullah Mohammed Al Awar, CEO of the DIFC Authority.
The guide provides detailed descriptions of more than 10 sukuk structures, information on the history and current status of sukuk globally, an overview regarding the issuing and listing of sukuk in or from DIFC, and regulatory licensing in the district.
view the Download Islamic Finance Infrastructure White Paper
Source: Dubai International Finance Center (DIFC)
Dubai Gold And Commodities Exchange Weekly Views Dec 20, 2009
December 20, 2009--Commodities Overview
Precious metals prices sold off last week. Petroleum meanwhile rebounded from its declines the week before. Prices for these and other commodities may be choppy this week, but trade largely sideways. Precious metals may find a floor while oil consolidates recent increases.
The selling pressure may continue in precious metals, but strong buying on dips are expected to limit any further declines. Crude oil meanwhile may trade largely between $71 and $75. Much of the weakness in precious metals reflected investor attitudes shifting more toward a positive economic outlook, a shift we expect to continue, albeit with interruptions, over the next weeks and months.
Currencies Overview
The dollar has staged a forceful upward move since the beginning of December. The longer term trend may be upward for the dollar, although this week there could be a pause in the upward move. The dollar strength may have been a bit overdone last week, as investors reacted harshly to news about the financial conditions within Greece. There may be some moderation of the anti-euro bias in the market this week. We should admit that six months ago our view was that the dollar had bottomed out and was about to stage a rally of 5% or so. The dollar was at $1.40 against the euro at that time. It steadily deteriorated in value until reaching $1.51 in late November. While the dollar has recovered since then, it still has not regained what we had viewed as a bottom in July.
Source: Dubai Gold And Commodities Exchange (DGCX)
Dubai may get more Abu Dhabi aid in 2010
December 21, 2009--The UAE's economy minister said today Dubai may get more aid from either the UAE federal government or Abu Dhabi, Reuters has reported. Asked whether the UAE government will extend more financial support to Dubai next year, Sultan bin Saeed al-Mansouri said the situation would be evaluated.
'This issue has to be studied in a proper manner, evaluated and based on that, an answer will be provided on the federal level or the local level because the way we see this is one economy not separated from each other,' he was quoted as saying by the news service.
Source: AME Info
Is Iraq Ready for American Investors?
December 18, 2009--At the end of her speech to more than a thousand US and Iraqi businesspeople packed in a hotel ballroom, Secretary of State Hillary Rodham Clinton threw an American spin on an Arab proverb: “Dawn does not come twice to wake a man – or a woman.”
Her point? It’s time to invest in Iraq.
It sounds crazy. Though the violence has ebbed, terrorists still make their presence felt with deadly attacks. Challenges – from dividing oil revenues to the future of the northern city of Kirkuk – threaten to split the country. Even if Iraq hangs together, it faces a daunting to-do list of reforms before it becomes a place many foreign businesses would set foot in.
Iraq, to put it mildly, needs everything: more than 2 million housing units, half a million hospital beds, seemingly endless technology and know-how for an escalating oil and gas extraction industry, the rebuilding of the nation’s once-robust education system from top to bottom.
Source: csmonitor.com
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