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UAE's position as global financial centre to strengthen: Report

Waheed Abbas/Dubai
Filed on February 1, 2020

(KT file)

The UAE's position among global financial centres will strengthen in the next five years, according to a survey of 240 senior financial executives.

Conducted by Duff & Phelps, the survey results showed that 1.1 per cent of respondents rated the UAE among the top financial centres. The number of respondents who believe that the importance of the UAE over the next five years also increased to 3.2 per cent.

Globally, New York tops the list followed by London, Singapore, Dublin, Luxembourg, the UAE, and Hong Kong. Data showed that over the next five years, the UAE will be a bigger financial centre than Paris, Frankfurt, Dublin, and Luxembourg. However, the Chinese commercial capital, Shanghai, will see a massive increase among the global financial centre to emerge as the third largest after New York and London.

Quoting Duff and Phelps data, Visual Capitalist said that 49.7 per cent of respondents believe that New York will retain its position as top financial centre followed by 21.5 per cent betting on London and 8.7 per cent believe Shanghai will emerge as a major financial centre by 2025.

Around 5.4 per cent finance executives say Singapore will remain a major financial centre, 3.8 per cent bet on Hong Kong, and 3.2 per cent on the UAE. The survey results showed that more respondents bet on the UAE than Frankfurt, Paris, Luxembourg and Dublin to be the world's top financial centre in the next five years.

Led by Dubai International Financial Centre, Dubai is already rated top financial centre in the Middle East, Africa and South Asia (MEASA) region and 8th globally by the Global Financial Centre Index (GFCI).

Essa Kazim, governor of DIFC, had said the financial sector is a cornerstone for the UAE's rapidly expanding economy and the DIFC is magnet for international trade and investment.

"The centre's continued achievements further underscores the strong promise of Dubai as the destination of choice for global institutions, leading organisations, sector changemakers and the financial technology disruptors of the future to collaborate to deliver exponential growth. We reaffirm our commitment to shaping the future of the global financial landscape," he said earlier.

More importantly, finance executive foresee that London's positions will weaken in the aftermath of Britain's exit from the European Union on January 31, 2020. Around 34 per cent respondents believe that London is the second largest financial centre after New York. But The City loses its appeal as only 22 per cent predict that London will still be the major force in financial services by 2025.

Britain left the European Union on January 31, 2020. It is estimated that the UK financial sector will lose up to $15.7 billion due to Brexit.

- waheedabbas@khaleejtimes.com


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