Monday, May 28, 2012
DUBAI (Zawya Dow Jones)--Deposits held by firms in the Dubai International Financial Centre have grown at an annual average of 39% over the past three years to $12.79 billion at the end of the first quarter, according to new data on activity in the financial free zone.
Loans and advances by DIFC firms have also grown at an annual average of 40% over the same period to $14.75 billion at the end of the first quarter.
DIFC-based firms can make corporate loans and take corporate deposits if they are authorized by regulators to do so, but do not do retail banking.
Nasser Saidi, the centre's chief economist, on Monday said he expected the growth in lending and deposits to continue, although their size is only a small fraction of overall loans and deposits in the United Arab Emirates and the GCC.
Asian companies have grown their footprint in the DIFC in recent years, and Dubai is seen as a safe haven in the Middle East as political turmoil grips other parts of the region.
"The safe-haven aspect I think will be a continuing important factor," Saidi said.
Assets under management at the DIFC have stayed level in recent years, the data showed, reaching $8.1 billion at the end of the first quarter. There are 28 asset management firms in the centre.
-By Asa Fitch, Dow Jones Newswires, +971 4 446-1685, asa.fitch@dowjones.com; Twitter: @ZDJnews
Copyright (c) 2012 Dow Jones & Co.
(END) Dow Jones Newswires
28-05-12 0720GMT
