Last week, more than 1,500 brilliant minds from the finance industry gathered in Washington D.C. for the 2017 Institute of International Finance (IIF) Annual Membership Meeting.
Among the leading decision-makers, innovators and thought leaders in attendance was a delegation from Dubai International Financial Centre (DIFC), participating in the productive conversations about the future of finance in the public and private sectors around the globe.
This year, there was a strong focus on emerging and frontier markets, with more than a full days worth of programming exploring markets from the Middle East to Russia to Latin America. This focus reflects the fact that emerging markets continue to evolve and diversify, and are occupying an ever-more significant role in the global financial landscape. Over the past few years, we have witnessed fundamental shifts taking place in the traditional economic and geopolitical powerhouses of the USA and Western Europe, and thoughts are turning to dynamic new regions of the world.
The overwhelming mood at the conference was optimistic, with the global economic recovery forming part of many discussions. People talked about oil prices, but I was gratified to note an ever-increasing understanding of Dubais position as an increasingly diversified economy. Reflecting this, DIFC has continued to grow; the number of companies joining DIFC in H1 2017 rose by 6.2 per cent to 1,750, and our pipeline of interested new joiners remains strong.
I was honoured to contribute my thoughts on the outlook from the Mena region in a discussion with Robin Brooks, Managing Director and Chief Economist, IIF, as part of the emerging markets programming. It was an opportunity to highlight the growth of the financial industry in our region, and to speak to an international audience about the success of the GCCs economic diversification efforts. Robin asked me how the region is adjusting to the new normal of low oil prices, and I was able to explain that the UAE and the wider region have been pressing ahead with strategies to reduce dependency on oil since well before the initial price drop. For example, the finance industry now contributes around 12 per cent of Dubais GDP, while the UAE Minister of Economy, Sultan Bin Saeed Al Mansouri, estimates that the tourism sector will reach Dh236.8 billion by 2026, growing at 5.4 per cent annually.
The audience in D.C. were also interested to hear about the increasing openness of GCC economies to foreign investment, with Saudi Arabias stock exchange opening to overseas investors in 2015 and their recent high-profile international deals, such as the IPO of Saudi Aramco. Similarly, in the UAE, the jurisdiction of free zones, like DIFC, is increasing, offering more opportunities for companies to be majority or fully foreign-owned; DIFC alone plans to be home to 1,000 financial firms, 50,000 workers and 5.5 million square feet of office space by 2024 — a three-fold growth in less than 10 years.
As the MEASA regions leading financial centre, DIFC sees it as our responsibility to provide a platform for business and trade to flourish. To do that, we have to anticipate change and identify emerging trends. We have to stay ahead of the curve.
In pursuit of this goal, DIFC is constantly looking ahead to the future of finance. If we do that successfully, it allows us to set the parameters and build the foundations for our regions economies to grow and succeed in the shifting global economy. We are encouraging our community of over 1,700 companies to harness financial technology to enhance productivity and efficiency for the entire MEASA region.
The right type of regulatory environment is crucial to enable such bold changes. DFSA is a critical component of this initiative and has been introducing new regulation covering financial technology with speed and decisiveness. This led to the introduction of the Innovation Testing Licence, which allows young FinTech companies to develop and test innovative concepts from within DIFC. They are able to do this without being subject to all the regulatory requirements that normally apply to regulated firms.
These are important steps to establishing DIFC and Dubai in general as a globally recognised innovation hub.
Wealth and asset management is a particularly exciting sector for us. There are deep pools of wealth in our region, and a recent report we issued with Thomson Reuters showed that total AuM by fund managers in MEASAs key financial centres is expected to rise from $436.5 billion in 2016 to $678.9 billion in 2020. Current low levels of market penetration across a range of classes and sectors mean that insurance and reinsurance is also an important emerging sector. DIFC welcomed Lloyds of London in 2015, followed by a number of other major industry players.
As the CEO of DIFC, it is both a duty and a privilege to represent our region to international audiences, and I am pleased that our contribution to global economic activity is being recognised at important platforms like the IIF conference. Many of the themes at the event will be discussed in greater detail at the Global Financial Forum in Dubai on November 14, which DIFC is pleased to be organising.
In her signature session, Christine Lagarde, Managing Director at the IMF, said that emerging markets need access to infrastructure, finance and financial inclusion to succeed. DIFC and Dubai are best placed to shape these crucial elements for the MEASA region.
— Arif Amiri. Chief Executive Officer. Dubai International Financial Centre Authority
Among the leading decision-makers, innovators and thought leaders in attendance was a delegation from Dubai International Financial Centre (DIFC), participating in the productive conversations about the future of finance in the public and private sectors around the globe.
This year, there was a strong focus on emerging and frontier markets, with more than a full days worth of programming exploring markets from the Middle East to Russia to Latin America. This focus reflects the fact that emerging markets continue to evolve and diversify, and are occupying an ever-more significant role in the global financial landscape. Over the past few years, we have witnessed fundamental shifts taking place in the traditional economic and geopolitical powerhouses of the USA and Western Europe, and thoughts are turning to dynamic new regions of the world.
The overwhelming mood at the conference was optimistic, with the global economic recovery forming part of many discussions. People talked about oil prices, but I was gratified to note an ever-increasing understanding of Dubais position as an increasingly diversified economy. Reflecting this, DIFC has continued to grow; the number of companies joining DIFC in H1 2017 rose by 6.2 per cent to 1,750, and our pipeline of interested new joiners remains strong.
I was honoured to contribute my thoughts on the outlook from the Mena region in a discussion with Robin Brooks, Managing Director and Chief Economist, IIF, as part of the emerging markets programming. It was an opportunity to highlight the growth of the financial industry in our region, and to speak to an international audience about the success of the GCCs economic diversification efforts. Robin asked me how the region is adjusting to the new normal of low oil prices, and I was able to explain that the UAE and the wider region have been pressing ahead with strategies to reduce dependency on oil since well before the initial price drop. For example, the finance industry now contributes around 12 per cent of Dubais GDP, while the UAE Minister of Economy, Sultan Bin Saeed Al Mansouri, estimates that the tourism sector will reach Dh236.8 billion by 2026, growing at 5.4 per cent annually.
The audience in D.C. were also interested to hear about the increasing openness of GCC economies to foreign investment, with Saudi Arabias stock exchange opening to overseas investors in 2015 and their recent high-profile international deals, such as the IPO of Saudi Aramco. Similarly, in the UAE, the jurisdiction of free zones, like DIFC, is increasing, offering more opportunities for companies to be majority or fully foreign-owned; DIFC alone plans to be home to 1,000 financial firms, 50,000 workers and 5.5 million square feet of office space by 2024 — a three-fold growth in less than 10 years.
As the MEASA regions leading financial centre, DIFC sees it as our responsibility to provide a platform for business and trade to flourish. To do that, we have to anticipate change and identify emerging trends. We have to stay ahead of the curve.
In pursuit of this goal, DIFC is constantly looking ahead to the future of finance. If we do that successfully, it allows us to set the parameters and build the foundations for our regions economies to grow and succeed in the shifting global economy. We are encouraging our community of over 1,700 companies to harness financial technology to enhance productivity and efficiency for the entire MEASA region.
The right type of regulatory environment is crucial to enable such bold changes. DFSA is a critical component of this initiative and has been introducing new regulation covering financial technology with speed and decisiveness. This led to the introduction of the Innovation Testing Licence, which allows young FinTech companies to develop and test innovative concepts from within DIFC. They are able to do this without being subject to all the regulatory requirements that normally apply to regulated firms.
These are important steps to establishing DIFC and Dubai in general as a globally recognised innovation hub.
Wealth and asset management is a particularly exciting sector for us. There are deep pools of wealth in our region, and a recent report we issued with Thomson Reuters showed that total AuM by fund managers in MEASAs key financial centres is expected to rise from $436.5 billion in 2016 to $678.9 billion in 2020. Current low levels of market penetration across a range of classes and sectors mean that insurance and reinsurance is also an important emerging sector. DIFC welcomed Lloyds of London in 2015, followed by a number of other major industry players.
As the CEO of DIFC, it is both a duty and a privilege to represent our region to international audiences, and I am pleased that our contribution to global economic activity is being recognised at important platforms like the IIF conference. Many of the themes at the event will be discussed in greater detail at the Global Financial Forum in Dubai on November 14, which DIFC is pleased to be organising.
In her signature session, Christine Lagarde, Managing Director at the IMF, said that emerging markets need access to infrastructure, finance and financial inclusion to succeed. DIFC and Dubai are best placed to shape these crucial elements for the MEASA region.
— Arif Amiri. Chief Executive Officer. Dubai International Financial Centre Authority
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