Mar 21 2012
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Dubai in Top 5 financial centres
The just published Global Financial Centres Index, which tracks competitiveness among 77 international financial hubs, also sees Dubai regain its top slot among regional financial centres, overtaking Qatar once again as the regional hub of finance.
Source: Global Financial Centres Index 2011
Overall, Dubai improves its global ranking from #36 in 2010 to #29 in 2011 even as London, New York and Hong Kong and Singapore retain the top 4 slots globally in the Index published twice annually by the Z/Yen group. Tokyo replaces Shanghai at the No. 5 slot this year.
"We believe that Qatar has strong underlying fundamentals to challenge Dubai," it said. Qatar dropped eight slots to land at #38 in the latest rankings compared with #30 in the previous edition.
With a global ranking of #70, Saudi Arabia's Riyadh brought up the bottom of the regional financial hubs.
The report maintains that although the trend of large jumps in the Asia/Pacific financial centres' rankings is subdued this year, it is only a matter of time before they emerge as global leaders.
"The past trend of large rises in the ratings of Asia/Pacific centres has paused," it said, adding that the overall scores of Hong Kong, Singapore, Tokyo, Shanghai, Beijing, Taipei and Shenzhen all declined in the latest rankings. "Centres on the mainland of China have seen significant declines with Shanghai down 37 points and Beijing down 11. Hong Kong sees a 16 point drop and is now 27 points below London," the report said.
"We believe that these results in Asia are just an interlude in the long-term trend of the increasing importance of the region rather than a fundamental change in fortunes," the report maintains. "Overall respondents think that the Asian centres will continue to become more significant. Some respondents question whether financial centres on mainland China will be able to continue their growth without relaxations in currency controls. It is worth noting that Seoul and Sydney are the only centres in Asia/Pacific showing higher ratings than in GFCI 10."
The GFCI provides ratings for financial centres calculated by a 'factor assessment model' that uses two distinct sets of input: Instrumental factors (external indices that contribute to competitiveness) and Financial centre assessments, by means of an online questionnaire.
© Emirates 24|7 2012
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