(Gulf Intelligence) June 7, 2010 -- Dubai, which hosts the Middle East's largest port and airline, will remain the region's top business hub in 2015, according to a survey conducted by Insight Discovery on behalf of the Arqaam Capital Dubai Beirut Forum.
The emirate, which is currently navigating its way out from under a debt mountain that the International Monetary Fund has placed at more than $100 billion, garnered a vote of confidence from 72%* of those participating in the survey, which was conducted at the 'Arqaam Capital Dubai Beirut Forum' in the Dubai International Financial Center yesterday.
When the gathering of more than 100 senior business and financial managers working in the region, including the former Prime Minister of Lebanon, were asked which Middle East city do you think will become 'THE' business financial hub by 2015?, Dubai topped the list, with Abu Dhabi coming in second with 16% and Beirut city secured third with 4%.
`I remain extremely bullish on Dubai,'' said Riad Meliti, the chief executive officer of Arqaam Capital, the only investment bank in the Middle East selling equities futures. ``The emirate's advanced infrastructure leave it well positioned to come out of this current cycle even stronger than before - that said the region will give birth to many hubs in due course,'' he said.
Dubai World, one of the emirate's three main state-owned business groups, said on May 20 it reached an agreement with a group of creditors to restructure $23.5 billion of liabilities. The Dubai government and its state-owned companies have racked up $109.3 billion of debt and about $15.5 billion of that is due this year, according to International Monetary Fund estimates, as the emirate pursued a drive to transform itself into a tourism, trade and financial hub.
The top three characteristics needed to be present for a Middle Eastern city to claim the status of the region's Wall Street financial centre were worldclass infrastructure, ease of establishing business, and an effective regulator, according to the survey.
The Arqaam Capital Dubai Beirut Forum, a part of Thegulfintelligence.com Knowledge Series, was held yesterday at the DIFC with His Excellency Fuad Siniora as the forum's featured guest. The knowledge event explored the question of whether the Middle East can support more than one business hub.
`Three stock exchanges in the U.A.E. alone and several others across this small neighborhood that individually require separate licenses, is a deterrent for global investors that seek deep liquidity and a single point of entry,'' said Sean Evers, founder and managing partner of Dubai-based Gulf Intelligence, a strategic communications firm. `This continued deterrence threatens the region's opportunity of giving birth to a truly global hub that could serve all their individual advancement.''
The survey concluded that the trend that has seen several regional companies such as Zawya and Arqaam Capital, and international firms such as Deloitte & Touche and Booz Allen, have recognized Beirut as a regional base in order to benefit from Lebanon's talent pool and low cost structure- 57% said they see the trend likely to increase over the coming 12 months.
* Sample size of 75 senior and top management operating in the Middle East
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Gulf Intelligence
Gulf Intelligence facilitates knowledge exchange between stakeholders. The strategic communications and public affairs consultancy produces boutique industry forums with an architecture that ensures all participants engage in a dynamic and competitive exchange of knowledge towards a shared goal. The Dubai-based firm assists Middle East companies and government entities to tap dormant intelligence and create knowledge reservoirs that can be utilized to bolster their profiles, to communicate with stakeholders and to overwhelm competitors.
Arqaam Capital
Arqaam Capital, a strong, fast-growing player in the investment banking world, bringing regional and international product offerings to the Middle East, has really begun to make an impact on the region's investment banking industry in the three years since its launch. Capitalized in 2007 with $140 million, Arqaam now has 65 staff and seven lines of business, covering asset management, brokerage, corporate finance, credit, custody, equity derivatives and treasury.
Insight Discovery specializes in gathering market intelligence, designed to give businesses a competitive edge and a greater understanding of their key assets - customers and employees Our surveys can be conducted online, through paper questionnaires, CATI (telephone) and face to face. Our surveys can also be conducted in virtually any language. We manage the research process from beginning to end; developing the questionnaire, conducting the research, analyzing the data and presenting the findings to you in a user-friendly report.
CONTACT: For more information please contact Raghida Haddad - raghidahaddad@gulfintelligence.com ; For more information on the Dubai Beirut Forum, please visit www.thegulfintelligence.com
© Press Release 2010
