News
New Study Underscores Dubai’s Growing Stature as a Leading International Financial Centre
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:
1. Singapore
2. London (UK)
3. New York (USA)
4. Hong Kong
5. Zurich (Switzerland)
6. Tokyo (Japan)
7. Dubai International Financial Centre (UAE)
8. Frankfurt (Germany)
9. Luxembourg
10. Dubai (UAE)
11. Paris (France)
12. Dublin (Ireland)
13. Doha (Qatar)
14. Manama (Bahrain)
15. 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.
About DIFC
The Dubai International Financial Centre (DIFC) is an onshore hub for global finance. It bridges the time gap between the financial centres of Hong Kong and London and services a region with the largest untapped emerging market for financial services. In just five years, over 850 firms have registered at DIFC. They operate in an open environment complemented with world-class regulations and standards. DIFC offers its member institutions incentives such as 100 per cent foreign ownership, zero tax on income and profits and no restrictions on foreign exchange. In addition their business benefits from modern infrastructure, operational support and business continuity facilities of uncompromisingly high standards.
DIFC Media Contacts:
Amira Abdulla
Director - Regional Public Relations
Dubai International Financial Centre
Tel: +971 4 362 2433
Email: amira.abdulla@difc.ae
Shaima Al Zarouni
Assistant PR Manager
Dubai International Financial Centre
Tel: +971 4 362 2432
E-mail: shaima.alzarouni@difc.ae
About KPMG
KPMG is a global network of professional firms providing Audit, Tax and Advisory services. We operate in 144 countries and have 137,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International, a Swiss cooperative. Each KPMG firm is a legally distinct and separate entity and describes itself as such.
KPMG in the UAE is a member firm of KPMG International. It was established in 1973 and now consists of about 650 staff members, including 22 partners with offices in Dubai, Abu Dhabi, Sharjah, Fujairah and Jebel Ali serving clients across all major industries in the region.
KPMG Media Contact:
Sahil Alvi
Manager – Advisory & Markets
KPMG
Tel: + 971 (4) 4030 300
Email: sahilalvi@kpmg.com
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:
1. Singapore
2. London (UK)
3. New York (USA)
4. Hong Kong
5. Zurich (Switzerland)
6. Tokyo (Japan)
7. Dubai International Financial Centre (UAE)
8. Frankfurt (Germany)
9. Luxembourg
10. Dubai (UAE)
11. Paris (France)
12. Dublin (Ireland)
13. Doha (Qatar)
14. Manama (Bahrain)
15. 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.
About DIFC
The Dubai International Financial Centre (DIFC) is an onshore hub for global finance. It bridges the time gap between the financial centres of Hong Kong and London and services a region with the largest untapped emerging market for financial services. In just five years, over 850 firms have registered at DIFC. They operate in an open environment complemented with world-class regulations and standards. DIFC offers its member institutions incentives such as 100 per cent foreign ownership, zero tax on income and profits and no restrictions on foreign exchange. In addition their business benefits from modern infrastructure, operational support and business continuity facilities of uncompromisingly high standards.
DIFC Media Contacts:
Amira Abdulla
Director - Regional Public Relations
Dubai International Financial Centre
Tel: +971 4 362 2433
Email: amira.abdulla@difc.ae
Shaima Al Zarouni
Assistant PR Manager
Dubai International Financial Centre
Tel: +971 4 362 2432
E-mail: shaima.alzarouni@difc.ae
About KPMG
KPMG is a global network of professional firms providing Audit, Tax and Advisory services. We operate in 144 countries and have 137,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International, a Swiss cooperative. Each KPMG firm is a legally distinct and separate entity and describes itself as such.
KPMG in the UAE is a member firm of KPMG International. It was established in 1973 and now consists of about 650 staff members, including 22 partners with offices in Dubai, Abu Dhabi, Sharjah, Fujairah and Jebel Ali serving clients across all major industries in the region.
KPMG Media Contact:
Sahil Alvi
Manager – Advisory & Markets
KPMG
Tel: + 971 (4) 4030 300
Email: sahilalvi@kpmg.com
international_financial_centres_competitive_assessment_report.pdf, Size: 2.5 MB© 2010 KPMG, the United Arab Emirates member firm of KPMG International, a Swiss cooperative. All rights reserved.
