Dubai finance sector needs to tap debt capital markets

Hani Al Hamli attends a seminar in Dubai that discussed the need to strengthen the emirate's debt market. - Supplied photo

Experts have called to deepen the debt market in Dubai in order to attract more foreign direct investment (FDI). This was the consensus during a recently held seminar which launched a report titled 'Developing Dubai's debt market to promote investment and growth'.
The seminar was organised by the Dubai Economic Council (DEC) in collaboration with Deloitte. Stakeholders from both public and private sectors attended the event.
In his opening remarks, Hani Al Hamli, DEC secretary-general, said the financial sector, among other main sectors, is key in sustaining economic growth in Dubai.
Al Hamli said the debt capital market in particular can play a crucial role in enhancing the financial sector through diversifying sources of financing for both the government and the private sector.
"The DEC has recently worked with Deloitte to draft the second edition of a series of policy reports on the financial sector, focusing on the debt capital market, both conventional and Islamic. These reports aim to analyse the present situation and future prospects, identify opportunities and challenges, and then make policy recommendations to deepen this market," Al Hamli added.
"This report will help decision makers in both the public and private sectors take the right decisions and draw effective policies that aim to enhance the role of the debt market in Dubai's development agenda," Al Hamli added.
Humphry Hatton, chief executive officer of financial advisory in the Middle East at Deloitte, said: "A robust debt capital market offers an additional source of financing and can act as a source of stability to the economy by supporting growth across various economic cycles.
"The development of a deep and liquid debt market in Dubai is a continuous process, which will require collaborative support from both the private and public sectors to ensure efforts are harmonised and steered towards promoting investment and growth in Dubai," Hatton said.
"In this regard, increasing efforts towards supporting product innovation, improving the underlying debt market infrastructure and enhancing the legal and regulatory framework could prove to be instrumental in the expansion of Dubai's conventional and Islamic debt markets," Hatton said.
The report analyses the factors that are likely to provide the stimulus for the development of Dubai's conventional and Islamic debt markets. A core component of the report is the benchmarking of Dubai with other regional and international financial hubs that have either proven successful in attracting investment, or are at the stage of developing their debt capital markets and directly competing with Dubai.
Potential gaps that could impact Dubai's competitiveness are identified and a set of policy recommendations have been presented.
- business@khaleejtimes.com