Dubai in talks to set up financial centre in India
Dubai International Financial Centre (DIFC), a major regional offshore financial services hub, said on Wednesday it was in talks to create a financial district in India.
By PTI/UNI |
DUBAI: Dubai International Financial Centre (DIFC), a major regional offshore financial services hub, said on Wednesday it was in talks to create a financial district in India.
Omar bin Sulaiman, governor of state-owned DIFC, said the Indian centre might open as early as 2007 but stressed that talks with the Indian government were "at an early stage".
Asked if the proposed Indian centre would have an independent regulator set up with DIFC's help, he told reporters: "We will look at the whole spectrum. Anywhere from the real estate side and the cluster-building side, all the way to regulation and regulators, or linking the exchange."
Since DIFC opened in 2004, many of the world's leading financial institutions including Morgan Stanley, Merrill Lynch and Credit Suisse have applied for and received licences to offer financial services as they seek to tap Middle East oil wealth.
DIFC expects the number of financial firms there to rise by five times to 250 by 2009 and has ambitions to eventually rival London, New York and Hong Kong, a senior executive has said.
DIFC is a major real estate project, but it is more than just a property developer. It has its own courts, and its regulator, the Dubai Financial Services Authority, is independent of the United Arab Emirates central bank.
Dubai has had to embrace Western-style legal norms, in contrast to existing Islamic laws in the Gulf emirate, to make the 50-hectare jurisdiction appeal to global investors.
DIFC is also home to Dubai International Financial Exchange (DIFX), which lists a dozen stocks, depository receipts and bonds.
Investments
Sulaiman said DIFC is in talks with two Western countries and up to five Asian countries about setting up financial centres. He declined to give more details but said the eastern countries were more likely to seek help with regulatory supervision.
In a separate move, DIFC's investment arm is considering buying stakes in about 14 firms in the financial services sector, he said. The deals could be worth up to $2 billion.
"We are looking at different opportunities in Asia, Europe and even North America, whether it is the financial services sector or the support of the financial services sector," Sulaiman said, declining to give details for regulatory reasons.
DIFC Investments, launched in April, has up to $2 billion to finance acquisitions. It owns a 3.48 per cent stake in European stock market operator Euronext .
Sulaiman declined to say whether he would support Deutsche Boerse in their bids for Euronext.
He said the aim of DIFC's acquisitions was "to connect the region (Middle East) with the major financial centres of the world".
DIFC Investments is considering listing some of its assets on DIFX. Sulaiman declined to say which assets, but when asked if Real Estate Investment Trusts (REITs) were being considered, he said: "That could be one option."
Omar bin Sulaiman, governor of state-owned DIFC, said the Indian centre might open as early as 2007 but stressed that talks with the Indian government were "at an early stage".
Asked if the proposed Indian centre would have an independent regulator set up with DIFC's help, he told reporters: "We will look at the whole spectrum. Anywhere from the real estate side and the cluster-building side, all the way to regulation and regulators, or linking the exchange."
Since DIFC opened in 2004, many of the world's leading financial institutions including Morgan Stanley, Merrill Lynch and Credit Suisse have applied for and received licences to offer financial services as they seek to tap Middle East oil wealth.
DIFC expects the number of financial firms there to rise by five times to 250 by 2009 and has ambitions to eventually rival London, New York and Hong Kong, a senior executive has said.
DIFC is a major real estate project, but it is more than just a property developer. It has its own courts, and its regulator, the Dubai Financial Services Authority, is independent of the United Arab Emirates central bank.
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Dubai has had to embrace Western-style legal norms, in contrast to existing Islamic laws in the Gulf emirate, to make the 50-hectare jurisdiction appeal to global investors.
DIFC is also home to Dubai International Financial Exchange (DIFX), which lists a dozen stocks, depository receipts and bonds.
Investments
Sulaiman said DIFC is in talks with two Western countries and up to five Asian countries about setting up financial centres. He declined to give more details but said the eastern countries were more likely to seek help with regulatory supervision.
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In a separate move, DIFC's investment arm is considering buying stakes in about 14 firms in the financial services sector, he said. The deals could be worth up to $2 billion.
"We are looking at different opportunities in Asia, Europe and even North America, whether it is the financial services sector or the support of the financial services sector," Sulaiman said, declining to give details for regulatory reasons.
ADVERTISEMENT
DIFC Investments, launched in April, has up to $2 billion to finance acquisitions. It owns a 3.48 per cent stake in European stock market operator Euronext .
Sulaiman declined to say whether he would support Deutsche Boerse in their bids for Euronext.
He said the aim of DIFC's acquisitions was "to connect the region (Middle East) with the major financial centres of the world".
DIFC Investments is considering listing some of its assets on DIFX. Sulaiman declined to say which assets, but when asked if Real Estate Investment Trusts (REITs) were being considered, he said: "That could be one option."
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