Dresdner Bank To Join The Dubai International Financial Centre

Dresdner Bank has expanded its presence in the Near and Middle East region with the formation of a subsidiary in Dubai. The new company "Dresdner Bank (DIFC) Limited" has received a license from the Dubai Financial Services Authority to establish its office the Dubai International Financial Centre.

Dresdner Bank is one of the top ten players in Europe's private banking industry, and in Germany ranks number two in this segment. In total, the bank manages assets worth about 130 billion Euros (USD 201 billion) for its affluent and wealthy private clients.

Dresdner Bank is not new to the region having maintained a representative office in Dubai for over 12 years. Building on this experience, the new company has been established to serve as a platform for further growth throughout the GCC region specifically to take advantage of one of the most attractive and fastest growing private wealth management markets in the world. Dresdner Bank (DIFC) Limited will be part of Dresdner Bank's Private Wealth Management Division.

Welcoming Dresdner Bank to the DIFC community, Nasser Al Shaali, CEO of the DIFC Authority said: "With the exceptional growth of private wealth in the Middle East, the demand for wealth management services has experienced a tremendous surge. Institutions like Dresdner Bank with vast expertise in this sector have access to a large number of new market opportunities. Their office in DIFC gives the company the strategic platform to establish new relationships with customers, gain competitive edge and increase their share of the regional market."

Andreas Georgi, who represents this Division on Dresdner Bank's Board of Managing Directors said "The formation of a subsidiary in Dubai is a further step within the international expansion strategy of Dresdner Bank?s Private Wealth Management"

Clients will be able to access the comprehensive offering within the Allianz Group, which now encompasses two Shariah-compliant mutual funds managed by Allianz Global Investors ("Allianz RCM Islamic Global Equity Opportunities" and "Allianz RCM Islamic Global Emerging Markets Equity") to meet the high demand of Shariah-compliant investments in the entire region.

The new company will be run by Nigel Putt, who has managed client relationships in the Near and Middle East for many years and who offers comprehensive experience in regional and international private wealth management. The Team will be supported by the addition of further relationship managers in the coming months.

Dresdner Bank's Private Wealth Management Division has been expanding recently. Last year, the bank increased the number of offices in Germany dedicated to this sector from 7 to 22 and enlarged its international footprint through the acquisition of two asset managers in Belgium. In addition, new offices have been opened in three locations in Great Britain. Kleinwort Benson, the British subsidiary, was recently awarded "Best Private Bank in UK" by Financial Times and Investors Chronicle. The establishment of Dresdner Bank (DIFC) Limited further complements the expansion of the division on a global basis.
/Mondo Visione/

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Dubai International Financial Centre attracts global investors

A financial free zone on par with New York's Manhattan and Tokyo's Ginza district, the 110-acre Dubai International Financial Centre (DIFC) is home to some of the priciest real estate in Dubai. It is now the most exclusive district for business and trade in the emirate, attracting investors from Asia, Europe and the Americas. The DIFC is a geographic and legal jurisdiction linking the global exchanges including NASDAQ, LSE and HKEX. The DIFC is adjacent to Dubai World Trade Centre and is located at the start of Sheikh Zayed Road.

Its easy accessibility to Dubai Metro, Dubai International Airport and Jebel Ali Seaport and other prime residential and trading districts like Deira and Bur Dubai makes it an investment hub. The zone's potential is further enhanced by the presence of crucial financial think-tanks like Dubai International Financial Exchange (DIFX).

Prices of residential real estate are expected to go up by 25% at Dubai International Financial Centre in 2008/2009.

The free trade area offers investors 100% foreign ownership rights, zero tax rates and is home to prime financial bodies like Dubai International Financial Exchange or Dubai Stock Exchange. Consequently demand for office and residential space within the zone is soaring. The DIFC presently commands the highest prices for offices in Dubai, averaging US$12,668 per square metre. Prices here are 30-40% higher than the prevailing rates at other commercial zones like Business Bay, Sheikh Zayed Road, Tecom and Dubai Marina. The DIFC maintains the price lead in the residential market as well. The prices of studios at the free zone average US$ 641 square meter; for one bedroom apartments, the median rate is US$ 767 square meter. Given the current growth of Dubai economy and the vast potential of the area, Gowealthy forecasts a growth of 25% in real estate prices at Dubai International Financial Centre (DIFC) in 2008/2009.
/Gowealthy.com/

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Standard Chartered opens new trading floor at DIFC

The Standard Chartered Bank yesterday opened its new trading room at the Dubai International Financial Centre, strengthening its regional headquarters and becoming the biggest trading floor in the Middle East.

In a statement, the bank said the facility has 200 trading seats and will support its expanding global financial markets business. "This DIFC trading floor is geared to be a centre of excellence for the Middle East and Africa region," it added.

It stressed that the key product areas include risk management advisory, structuring, interest rates derivatives, foreign exchange, e-commerce, credit trading and capital markets capabilities. The latter cover fixed income, syndications, asset-backed securities, credit derivatives and convertible bonds.

DIFC Governor Dr Oman bin Sulaiman inaugurated the facility which, he said, has set new benchmarks for the industry in the region. "Facilities such as this will help to generate even more growth in the region's financial markets," he added.

The regional CEO of Standard Chartered, Shayne Nelson, said the bank co-ordinates its various regional activities from the UAE and has expanded its global operations for physical commodities, oil and energy.

The Standard Chartered office at DIFC also the centre for the bank's global market risk management and supports its businesses in the UK. It is the only bank within the DIFC to have its own office building.

"Our continued investment at the DIFC is testament to our commitment to the entire region," Nelso said. /MENAFN/

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Shariah-compliant gold shares to be listed on Dubai bourse

The Dubai Multi Commodities Centre (DMCC) and World Gold Council (WGC) have formed a new company to launch exchange-traded gold securities in Dubai to offer a Sharia-compliant investment choice.

The dollar-denominated Dubai Gold Shares will be traded on the Dubai International Financial Exchange (DIFX) after the companies receive approval from the Dubai Financial Services Authority.

The shares will be fully backed by physical gold and allow investors to gain exposure to gold bullion.

WGC, an industry body funded by the world's leading gold mining companies, said Dubai Gold Shares will be part of its portfolio of exchange-traded gold (ETG) products.

Officials of both WGC and DMCC did not disclose their share in the Dubai Gold Investments joint venture.

The physical gold bars backing the product will be of Dubai and London Good Delivery Standard, and held in the vaults of the custodian, DMCC, and sub-custodian, HSBC. Source

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Iranian Energy Holding plans listing on DIFX

Iran is planning to list shares in a US$90 billion energy holding company on the Dubai International Financial Exchange (DIFX). The main aim of the listing would be to attract international investment to Iran's struggling hydrocarbons sector.
According to the information, the Iranian firm is considering a simultaneous listing on both DIFX and a European exchange in Frankfurt, in addition to listings in Singapore, Hong Kong or Shanghai, to gain exposure to Asian investors.

Quoting Iranian sources, MEED said discussions between the Iranian Privatisation Organisation (IPO) and DIFX about preparing the initial groundwork for the listing are underway.

It remains however unlikely that under the current regional tensions the Iranian listing would obtain the necessary clearance from the Dubai exchange.

Last Wednesday the Bush administration imposed financial sanctions on Bahrain-based Future Bank. The US alleges the bank is controlled by Iran's Bank Melli, which has been accused of providing support to Iran's nuclear program.

The US administration also has accused Iran of taking steps to evade a range of financial sanctions.

Future Bank was established in 2004 as a joint venture between two Iranian state-owned banks — Bank Melli and Bank Saderat — and a private bank based in Bahrain. Bank Melli and Bank Saderat were put on the United States' blacklist last year to have their financial assets frozen.

According to the MEED report one Iranian executive close to the talks says Dubai appears keen to move forward.

"Talks have begun but no formal deals have been signed," says the executive. "There is a preference on Iran's behalf that the Gulf exchange to host the shares will be in Dubai, but if it does not work out they will look elsewhere."

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DIFC Authority releases 'Exempt Companies Regulations'

The DIFC Authority (DIFCA) today released for public consultation the 'Exempt Companies Regulations', a new set of regulations proposed under the Companies Law of 2006 and the Insolvency Law of 2004.

The new regulations are designed to assist financial institutions to carry out, among other things, securitisation transactions using the existing DIFC legal and regulatory framework.

Commenting on the imminent adoption of these regulations, HE Dr. Omar Bin Sulaiman, Governor of the DIFC, noted: 'With the increasing number and growing sophistication of transactions taking place in the Dubai International Financial Centre, the DIFC has again proved its commitment to international best practices - this time in the area of securitisation and other structured finance transactions. Through the adoption of these regulations, the DIFC demonstrates its willingness to support key players in their sectors of activity and respond to their requirements in a flexible manner while remaining faithful to its founding principles of integrity, transparency and efficiency. The simplicity of these new regulations also demonstrates the robustness of the existing legislative system, where it is now possible to introduce new areas of activity with relatively minor changes to our existing framework.' Nasser Al Shaali, CEO of the DIFC Authority said: 'As the DIFC continues its emergence as a leading international financial centre we are committed to providing the most mature, sophisticated infrastructure and legal framework to promote the development of a highly prosperous financial industry. By proposing the new regulations we aim to encourage securitisation transactions at the centre and cater and encourage the expansion of the products and services available at the DIFC.' Both Islamic finance and conventional finance transactions in the region often require the use of special purpose vehicles (SPVs). These SPVs, otherwise known as transaction-specific companies, are usually incorporated with the intention of being restricted in their operations, with no employees other than special directors. The use of SPVs in the DIFC under the new regulations is simply for the purpose of facilitating sophisticated financing activity. This is likely to have a favourable impact on the region's increasing demand for SPVs, in both conventional and Sharia-compliant products. (WAM)

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The launch of LCIA Arbitration Centre at DIFC

The Dubai International Financial Centre (DIFC) today announced a joint venture with the London Court of International Arbitration (LCIA) to offer dispute resolution services to all business and commercial sectors, providing a cost-effective and timely alternative to the Courts.

His Highness Sheikh Maktoum Bin Mohammed Bin Rashid Al Maktoum, Deputy Ruler of Dubai, who inaugurated the LCIA at the DIFC in Dubai Sunday, said that "the establishment of the DIFC LCIA Arbitration Centre is part of a strategy to position Dubai as an international arbitration jurisdiction. This is a landmark step for Dubai, reaffirming its status as one of the world's leading business hubs and creating an efficient working environment for local and international companies to prosper." The joint venture establishes a new centre for the administration of international arbitration and mediation to complement the independent legal and regulatory framework of DIFC. The DIFC - LCIA association will benefit from the reputation of the LCIA as one of the longest-established international institutions for commercial dispute resolution in the world, which will complement DIFC's reputation as the world's fastest growing international financial centre.

The DIFC-LCIA Arbitration Centre will be located in the DIFC and will promote the effective resolution of international business disputes through arbitration and mediation world-wide. The DIFC LCIA Arbitration Centre's Arbitration and Mediation rules are a close adaptation of the LCIA Rules, with minor changes to align them with the DIFC LCIA Arbitration Centre's needs.

The rules are universally applicable and compatible with both civil and common law systems, offering the international business community, international lawyers and arbitrators a comprehensive and modern set of rules and procedures.

The Centre has access to the LCIA's unique database of arbitrators with the widest range of professional qualifications and expertise (legal and non-legal), enabling it to appoint tribunals of the highest calibre.

With the introduction of the DIFC Arbitration Law 2008, the DIFC will offer a legislative platform for comprehensive dispute resolution. The Arbitration Law is based on the UNCITRAL Model Law on International Commercial Arbitration, and covers all stages of the arbitral process, from the arbitration agreement to the recognition and enforcement of arbitral awards.

The adaptation of the Model Law makes the DIFC Arbitration Law practical and comprehensible to all arbitration practitioners. The Law also covers all aspects of legislation necessary to accommodate the unique set-up of the DIFC's jurisdiction and legal framework and to overcome any hurdles presented by the region's unique market conditions and dynamics.

Signing the joint venture Agreement on behalf of DIFC, Dr. Omar Bin Sulaiman, governor of the DIFC, commented: "The current business environment in the Middle East and North Africa region, where economies are experiencing unprecedented growth, merits a new, dedicated centre for provision of dispute resolution services".

He added that the creation of the DIFC-LCIA Arbitration Centre achieves DIFC's aim to be the key source, and sole body, in providing unique and efficient arbitration services as an alternative way of dispute resolution for the business and commercial community in the DIFC, Dubai, the region and internationally." Signing on behalf of the LCIA, Adrian Winstanley, LCIA director general, said "The LCIA is delighted to be working with DIFC on this important initiative to provide, within DIFC itself, the efficient, neutral, dependable and cost-effective ADR services for which the LCIA is widely known, for parties doing business in, through and beyond DIFC".

He added that this cooperative venture underlines the LCIA's recognition of the important and burgeoning economies of Dubai, and the wider Middle East, within which the LCIA hopes to make a greater contribution to the provision of commercial dispute resolution services and associated information and training programmes. (WAM)

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DIFC establishes Mudara institute

The Dubai International Financial Centre (DIFC) yesterday announced the establishment of — Mudara — The Institute of Directors (IOD), a leading initiative for the region to promote excellence at board level and facilitate professional development through education, networking, and services to members.

Dr Omar bin Sulaiman, Governor of the DIFC, said: "As the business landscape in the Middle East continues to develop at a rapid rate, it is important to develop professional and independent directors, and for existing directors to continue to improve their skills and performance. Mudara- The Institute of Directors will play a significant role in providing accredited education programmes for directors across the region, and guiding members to follow best international practices. IOD will build an exclusive base of Board members in the region through its membership profile ". Source

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DIFC Lifestyle - ‘The Gate District’

The Dubai International Financial Centre (DIFC) opened its doors to the public, with the first phase of DIFC Lifestyle. Inaugurated by Sheikh Mayed Bin Mohammed Bin Rashid Al Maktoum and and attended by His Excellency Dr Omar Bin Sulaiman, Governor of the DIFC, DIFC Lifestyle offers a unique environment comprising high-end retailers, world-class restaurants and the best in international contemporary art and entertainment.

Beyond the landmark Gate building lies ‘The Gate District’, an eclectic mix of art, culture and stunning architecture, alongside chic eateries and fashionable shops. This unique integration of iconic buildings and contemporary living is fast becoming the epicenter of Dubai and a lifestyle people aspire to. Within a welcoming and relaxing environment, DIFC Lifestyle will provide an experience to fulfil every aspect of weekday and weekend life.
His Excellency Dr. Omar Bin Sulaiman, Governor of the DIFC, said: “DIFC Lifestyle signals the beginning of a new era at the DIFC, which promises an avant-garde experience for Dubai’s residents and visitors alike. Originally created as a financial district, through DIFC Lifestyle, the DIFC will ensure the centre is accessible for all to enjoy and will act as an exciting retail and cultural magnet for the city. In line with the Dubai Strategic Plan, social development through creating a world-class environment, provides a better quality of life and an enriched cultural environment. As such, the DIFC is committed to contributing to the development of Dubai as a lifestyle choice as well as a professional hub.”

Considered “Dubai’s best-kept secret”, the exclusive, self-contained precinct currently includes high-end retailers, as well as artistic exhibitions and performances. The public are invited to enjoy the unique environment at the DIFC which is open on weekdays from 10am to 10pm and on weekends from 10am to midnight. Parking will be provided and will be free after 5pm and on weekends.

Mr Abdulla Bin Sugat, Executive Director of Retail for the DIFC added: “DIFC Lifestyle is more than just a concept; it is a way of life. As the fastest emerging financial centre in the world, the DIFC has established itself as a leading international destination for those wanting to do business in the region. However, there is more to the DIFC than just business. DIFC Lifestyle offers 360˚ living, with high end fashion, fine dining, rich culture and entertainment; there is something for everyone at the centre. With over 175 nationalities working in a variety of sectors within the DIFC community, this diversity will be reflected in the assortment of activities and experiences on offer. As such, we are confident that DIFC Lifestyle will no longer remain Dubai’s best kept secret but will be appreciated by everyone living in and visiting the city.”

In celebration of the concept of DIFC Lifestyle, there will be a selection of activities and entertainment commencing today and continuing every day onwards. These will include classical and world music performances, mime artists, magic, living art and natural theatre.

Furthermore, today will see the official opening of the De Beers boutique in the DIFC. De Beers is widely recognised as the world’s leading diamond experts, after introducing in 1938 the “4Cs” (Cut, Colour, Carat, and Clarity) - the four most popular factors used to measure diamond quality which have now been adopted universally.

In addition to this, today there will be the book launch of “India Chalo” by Brij Singh, followed by a book signing at Borders bookshop in the DIFC. The book, published by Harper Collins, with the title meaning “Let’s go to India”, takes a lighter look at more serious topics, focusing on current economic opportunities in India. Booming sectors, such as media and telecoms, as well as economic trends, including growth rates and consumption demand, are captured in a light-hearted way by the author. Mr. Singh was previously the CEO of Julius Baer Middle East, the first bank to receive a licence at the DIFC, and then went on to become the founding CEO of Baer Capital Partners, an India-focused asset management and advisory business, with its global headquarters in the DIFC, and offices in London, Zurich, Mumbai and Delhi.

About the DIFC:

The Dubai International Financial Centre (DIFC) is an onshore hub for global finance. It bridges the time gap between the financial centres of Hong Kong and London and services a region with the largest untapped emerging market for financial services.

In just three years, over 500 firms have registered at the DIFC. They operate in an open environment complemented with world-class regulations and standards. The DIFC offers its member institutions incentives such as 100 per cent foreign ownership, zero tax on income and profits and no restrictions on foreign exchange. In addition their business benefits from modern infrastructure, operational support and business continuity facilities of uncompromisingly high standards.

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IBA Middle East Office opens in DIFC

The London-based International Bar Association (IBA), in partnership with the Dubai International Financial Centre (DIFC), announced the opening of its Middle East Office in Dubai.
The IBA, headquartered in London, England, has opened the new office as part of its global strategy of expanding its network of international offices to serve regions more fully and broaden contact with its members, the IBA siad in a press release.


Fernando Pombo, IBA President, in Dubai for the opening, said, "It is important to me that the IBA is accessible and geographically close to its members. The physical presence of an IBA office in the Middle East will enable us to better respond to the needs of our members there.
We recently hosted the Islamic Finance in the Middle East conference in Dubai and, in time, will develop and deliver other tailored programmes like this which specifically address issues unique to the region." The IBA Middle East Office is based at the heart of the Middle East's business and financial community in the DIFC, the world's fastest growing international financial centre.

Nasser Al Shaali, CEO, DIFC Authority says, "We are committed to offering a hub of business excellence and the establishment of the IBA within the DIFC is in line with this strategy. The IBA is a world leading organisation and I am certain that legal practices within the DIFC and the rest of the region will see real benefits.".

''Beyond the individual legal practices the IBA will play a significant role in developing the region's legal framework with its invaluable knowledge of international best practice.'' Faten Hani, CEO, DIFC Centre of Excellence says. The fact that the IBA is setting up an office within the DIFC is testament that the region has grown into a major financial centre and a unique jurisdiction.

''This is a major endorsement of the significance of legal practices within the Middle East and will be invaluable to the sector's growth in the region. The DIFC Centre of Excellence has attracted a number of high profile organisations within the professional services industry. The IBA is a welcome addition and truly strengthens our offering as a world class centre for education." The IBA will hold its annual conference in Dubai in 2011. This will be the first time in the Association's history that the IBA Annual Conference will be held in the Middle East. (WAM)

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DIFC gets ISO certification

The Dubai International Financial Centre Authority (DIFC Authority) today announced that it has been awarded an International Organisation for Standardisation (ISO) certification.

The ISO 9001:2000 certification was awarded by Lloyd's Register, the independent risk management organisation, in recognition of the DIFC Authority's commitment to continuous quality management and improvement of the services and operations at the DIFC.

Nasser Al Shaali, Chief Executive Officer of the DIFC Authority said: 'We, at the DIFC Authority, are delighted to receive this certification in recognition of our dedication and commitment to service excellence. As an internationally renowned standards certificate, the ISO certificate illustrates our determination to meet the global requirements of businesses and justifies our efforts to promote best practice procedures throughout the DIFC. The accolade further emphasizes the progress that we have made to date in asserting ourselves as one of the world's leading financial centres.' Basem Obaid, General Manager (ME and Africa) of Lloyd's Register added: 'The ISO 9001:2000 certification acknowledges the DIFC Authority's quality management system that has shown the ability to consistently provide products that meet customer and regulatory requirements. In addition, the certificate highlights the DIFC's efforts to enhance customer satisfaction through the effective application of the quality management system, including processes for continual improvement of the system and the assurance of conformity to customer and relevant regulatory requirements. The certificate gives a clear demonstration of the DIFC's commitment to quality and underlines the centre's commitment to ensuring the highest industry standards are met and exceeded.' ISO, the International Organisation for Standardisation, is the world's largest developer of voluntary, consensus-based International Standards. ISO 9000 is a series of internationally-recognised standards developed by the International Organisation of Standardisation which defines requirements for the implementation of quality systems in operational procedures. The standards apply uniformly to organisations in any industry and of any size.

Lloyd's Register (LRQA) is the world's leading international supplier of business assurance and the preferred global provider of risk management solutions aimed at enhancing its clients' quality, safety, environmental and business performance. (WAM)

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Dubai Financial Services Authority recognises CME Group

CME Group, the world's largest and most diverse exchange, announced today that the Dubai Financial Services Authority (DFSA) has granted CME, a CME Group Company, the status of a Recognized Body within the Dubai International Financial Centre (DIFC). The DFSA is the independent, integrated regulatory authority responsible for the regulation of all financial and ancillary services conducted in or from the DIFC.

The Recognized Body status takes effect immediately and enables market participants in DIFC to apply to become members of CME Group and directly access and trade CME products via the CME Globex electronic trading platform.

The company is also applying to distribute CBOT products to market participants in Dubai in 2008, subject to regulatory approvals.

As previously announced, in January 2008 CME Group will provide its global customer base with access to every major asset class by offering CME and CBOT products (save metals) on a single electronic trading platform, CME Globex.

"We are pleased to receive this recognition from the DFSA, and to continue to expand our global reach to the fast-growing DIFC community," said Arman Falsafi, Managing Director, Europe, Middle East and Africa. "We look forward to working with the DFSA to provide CME Group's global product suite within the highest standards of market oversight to the benefit of both local and global customers." Source

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JAFZ lists Dh7.5b sukuk on DIFX

Jebel Ali Free Zone FZE, or JAFZ, has listed a Dh7.5 billion ($2.04 billion) sukuk on the Dubai International Financial Exchange (DIFX).
The JAFZ sukuk listing confirms the exchange's status as the largest in the world for Islamic bonds. It is the first listing of any security on the DIFX in a currency other than US dollars, says a Press statement yesterday.

Salma Hareb, CEO of JAFZ said: "This is the first sukuk to be issued by JAFZ and its listing on the DIFX, as the region's international exchange, gives us an excellent visibility in the international as well as the regional marketplace."
"We experienced strong interest in the sukuk from regional and international investors," she added.

The sukuk certificates were issued by JAFZ Sukuk Limited and were sold to investors in the Middle East, Asia and Europe. The certificates have been rated A1 by Moody's and A+ by Standard & Poor's.

Per E. Larsson, Chief Executive of the DIFX, said: "This listing underlines the DIFX's status as a listing venue for major sukuk offerings issued by substantial public and private organisations, whether local, regional or international. As the international exchange serving this region, the DIFX provides issuers with a well regulated and internationally known platform."

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DIFC marks 3 years of growth

The Dubai International Financial Centre (DIFC) yesterday held its annual celebration under the patronage of His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.

The celebration underscored the global recognition DIFC has gained as the region's international financial centre. Since its establishment in September 2004, the DIFC has become the world's fastest growing financial hub, comprising almost 500 local and international companies. It has also grown into a community of more than 11,000 dedicated professionals of 107 nationalities, DIFC said in a statement.

"Following the vision of His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, the DIFC is continuing to play its vital role in driving Dubai, the UAE and the region's next phase of economic development," it said. "Furthermore, the DIFC is gaining a reputation for driving initiatives outside the realm of the traditional financial centre, promoting education, art and culture to build cultural understanding between the region and the rest of the world." As a tribute to those who have contributed to its achievements, a world class extravaganza was held yesterday evening.

The theme of this year's event was "One Voice" — encapsulating how the DIFC is the one place where the worlds of finance, the arts, culture and education come together to speak for Dubai.
The celebration is the culmination of a week of conferences, summits and boutique events, which was held from 17th to 23rd November, featuring a selection of prominent strategists and distinguished experts from both the regional and international arenas. DIFCweek focused on the theme of "Financial Opportunities for the Third Millennium" and addressed a comprehensive range of challenges and opportunities in the world's current and emerging financial markets. Source

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Global crash imminent, warns expert

A sharp downward correction is due in the global markets as real estate, stocks and energy soar to record highs, warned a leading expert on the opening day at this year's Dubai International Financial Centre (DIFC) Week.

Even as emerging markets like China, India and Brazil careen ahead at voracious growth rates, the speculative "bubbles" arising in the markets could cause a major global recession, cautioned Robert Shiller, the Stanley B. Resor Professor of Economics at Yale University, at yesterday's event.
"Perhaps we have gotten a little too confident in the global economic growth," said Shiller. "The problem is high oil, stock and real estate prices. I believe that a substantial part is speculative bubble thinking. We have gotten too confident of the prices in these markets," he said.
Oil prices, driven partly by demand from the rampant economic expansion of emerging markets, are flirting with all time record prices, even when adjusted for the devaluing of the U.S. dollar, in which oil is almost universally priced.

Housing too has been boosted to obscene highs on the back of the liquidity glut caused by low interest rates around the turn of the century and by speculative buying. Shiller pointed to the increase in long term home prices in the Netherlands, Norway and the U.S. to illustrate the precarious position the markets have been elevated to.

Now that the global credit crunch has all but dried up the lending and borrowing frenzy that fueled these price run-ups, the markets could face troubled times ahead.
"The unwinding of these markets is the most serious risk facing these markets today," Shiller said.

The confidence of consumers and investors has steadily eroded as they buckle under the pressure of these record high prices, according to measures taken by the Yale School of Management Stock Market Crash Confidence Index and its Market Valuation Confidence Index.
Shiller also pointed to the futures market, such as that of the CME in Chicago, which now predicts a major, ongoing decline over the coming four years.

DIFC Week runs until November 23 and features presentations from a host of economic leaders including Dr. Nasser Saidi, Larry Summers, Jeffery Sachs and Freakonomics author, Steven Levitt. Source

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Governor inaugurates first DIFCweek

His Excellency Dr. Omar Bin Sulaiman, Governor of the Dubai International Financial Centre (DIFC), on Saturday opened DIFCweek with a welcome address at the DIFC Economic Forum.
The DIFC Economic Forum is a unique event, developed with the support of the Economist Intelligence Unit, and is the first in a series of conferences, summits and boutique lectures, held November 17-23.

During his opening speech, Dr. Omar Bin Sulaiman welcomed the audience and outlined the ambitions for the week ahead: "The aims of DIFCweek are to present challenges for debate, to identify opportunities for leverage, and to create a forum to assess current situations and predict coming trends, so that we can all stride into the future with confidence. Hence the theme of DIFCweek is: Financial Opportunities for the Third Millennium."

"We have brought together more than 100 speakers who will address the principal issues, challenges and opportunities of the world's current and emerging financial markets. This week is critical at a time when the world's major financial centres are facing unprecedented challenges that stoke competition between long-established centres like such as New York and London and give encouragement to newer hubs like Dubai", he added.

The DIFC Economic Forum provides a valuable insight into investment opportunities and trends in emerging markets, with particular focus on implications for the Gulf markets. Whilst a substantial amount of foreign direct investment is now originating from emerging market countries, equally investment flows continue unabated from developed to emerging markets, with investors prepared to offset volatility and risk against higher returns.
Bringing leading economists, strategists, financiers and investors from around the world to meet regional experts and stakeholders, this landmark event analyses the changing dynamics of investing in emerging markets. It also addresses key issues such as: the top investment prospects for the year ahead; macro-economic characteristics which define an attractive investment opportunity; the best returns from emerging market investments; and the potential impact of a credit crunch in 2008There is a comprehensive agenda of interactive sessions, speaker presentations and panel discussions. Sessions throughout the day are moderated by Robin Bew, Editorial Director and Chief Economist of the Economist Intelligence Unit, along with Brad Bourland, Head of Research and Chief Economist at Jadwa Investment.

Robert Shiller, Professor of Economics at Yale University, the global macro-economic outlook for 2008. Dr Mark Mobius, Executive Chairman of Templeton Asset Investments has examined global investment trends, whilst Dr Nasser Saidi, Chief Economist of the DIFC Authority and Executive Director of Hawkamah, has focused more specifically at the economic outlook for the MENA region.

Stephen Roach, Chairman of Morgan Stanley Asia defined hot investment vehicles for 2008 and Pierre Cailleteau, Senior Vice-President and Chief International Economic and Financial Policy Analyst at Moody's Investors Service, presented his analysis to risk dynamics and assessment in emerging markets. Source

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Dubai bourse owner buys SmartStream

The Dubai International Financial Centre (DIFC) is poised to strengthen its position in global financial markets by acquiring a British-based trading technology firm SmartStream for just over £200m.

The DIFC, which owns Dubai's stock exchange - the Dubai International Financial Exchange - is in advanced talks to buy SmartStream from private equity firm TA Associates. A sale of SmartStream could be announced as early as today, according to informed sources.
Deutsche Bank is advising the DIFC on the deal, while Close Brothers has been hired to advise SmartStream.

The DIFC, set up only three years ago, is owned by the Dubai government. Sheikh Mohammed bin Rashid al Maktoum, the ruler of Dubai, is said to have big ambitions for the business and hired David Eldon, a former executive at HSBC, to chair the DIFC.

The potential acquisition of SmartStream will help the DIFC build a modern technology platform to support the Emirate's aim of turning Dubai into a global financial centre.

SmartStream provides technology that streamlines back-office processing for securities trading to 75 of the world's 100 largest banks.

TA Associates, which is likely to make around four times its original investment from the sale to DIFC, was planning to list the company on the London Stock Exchange.

However, adverse market conditions forced the private equity firm to abort the planned float.
Last year, the DIFC bought 3.5pc of Euronext. It has also taken stakes in HSBC and Deutsche Bank.
None of the parties involved would comment. Source

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NBD becomes first regional equity market maker

NBD Investment Bank (NBD-IB), the full service regional investment bank, and an Emirates NBD company, has become the first regionally based bank to sign a market making agreement for equities traded on the Dubai International Financial Exchange (DIFX).

Shahzad Shahbaz, Chief Executive of NBD-IB commented: "The market making capability is part of our strategy to provide comprehensive services to both our issuer and investor clients across issuance, sales and trading. "

"DIFX is clearly of growing importance to investors and issuers in Dubai and internationally as it continues to attract more debt and equity products. So it was a priority for us to establish ourselves as a market maker to ensure we can offer our clients in the region full access to the exchange through NBD-IB," Per E. Larsson, Chief Executive of the DIFX, said: "We welcome NBD-IB, as a leading investment bank based in the region, as our newest market maker and look forward to further strengthening our relationship.

"Market making provides investors with liquidity as well as confidence, ensuring that they can always buy or sell a security. It is a vital ingredient in our role as an international exchange serving investors in our region and around the world." NBD-IB became a trading member of the DIFX in January 2007.

Hamed Ali, Executive Officer of the DIFX said: "The DIFX is gearing up for further significant growth and new listings in a variety of asset classes. We expect to promote investor access to these through further market making agreements."

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Fraudsters target DIFC in $5bn scam

Banks operating in the Dubai International Financial Centre (DIFC) have been the target of a reported $5 billion fraud.

The Dubai Financial Service Authority (DFSA) said individuals tried to get loans from authorised companies operating out of the DIFC by posing as representatives of two fictitious organisations - Heritage Private Banking, which claimed to be from the UK, and the Genesis Foundation Alliance 'of Hong Kong'. The fraudsters attempted to pass off forged documents including letters of commitment and pledges from international financial institutions, the DFSA said.

The Financial Times said these financial institutions included UBS, the US Federal Reserve and Citibank in Singapore and put the attempted fraud at $5 billion.The DFSA said no financial loss was suffered within the centre.The regulator was made aware of the scam by Lloyds TSB, which in May reported an attempted use of fraudulent documents.The DFSA then alerted banks in DIFC, before making a public announcement on June 28.“Lloyds TSB International Private Banking takes its obligations to combat financial crime extremely seriously and reported an attempted use of fraudulent documents to the DFSA in the appropriate way in early May,” a spokesman for Lloyds TSB said. “This is now a matter for the regulator and we will, as we would always do, co-operate fully with any investigations they undertake," the spokesman added.Ian Johnston, DFSA managing director, said the regulator had done a good job of preventing the fraud and did not expect any repeat attempts of this kind. “I can’t imagine that anyone could try to get away with this in the centre now,” Johnston told ArabianBusiness.com.For criminal charges to be brought against those responsible for the scam, Lloyds TSB would need to submit a written complaint to Dubai Police as the DFSA has no criminal jurisdiction.Lloyds TSB would not confirm whether it has filed a complaint, or even if it plans to do so, and Dubai Police has so far declined to comment on the incident.Johnston said the DFSA has “always had very good cooperation with Dubai Police”, but would not comment on whether it requires more powers to bring suspects to trial in such cases.

The scam is just the latest in a string of foiled fraud attempts to hit the DIFC. In April, the DFSA reported that it had uncovered a Dubai-hosted website being used to front an unlicensed investment company designed to lure customers in Eastern Europe into investing in pre-IPO securities in the US. The case follows two earlier discoveries by the DFSA of internet scams aimed at conning investors out of money by pretending to operate out of DIFC. Source

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Dubai financial centre to sell Islamic bonds

The Dubai International Financial Centre (DIFC) plans to sell Islamic bonds and has hired Deutsche Bank and Goldman Sachs to arrange the issue, a Deutsche Bank official said on Sunday.

The DIFC will invite investors to presentations starting in the Malaysian capital, Kuala Lumpur on Monday and to June 5, Geert Bossuyt, head of Middle East structure at Deutsche Bank told Reuters.

He declined to say how much the DIFC, which the government of Dubai established to build a financial services hub in the Gulf Arab emirate, was selling.

Islamic bonds do not pay interest, which is banned as usury under Islamic law, and are structured as profit-sharing or rental agreements underpinned by physical assets.
Islamic finance caters to growing demand among the world’s 1.2 billion Muslims for investments that comply with their law.

The DIFC, a dollar-based investment zone in the Gulf region’s commercial hub, is bringing together investment banks to act as market-makers for Islamic bonds, or sukuk, listed on its new bourse, the Dubai International Financial Exchange.
Khalid Yousaf, director of Islamic finance at the DIFC, said in September the DIFC was expecting global sukuk issuance to top $100 billion in five years, compared with around $13 billion at the time.

Much of the growth will be driven by issuers based in Gulf oil exporters.
DIFC Investments, a unit of Dubai International Financial Centre, bought a 2.2 percent stake in Deutsche Bank this month. Source

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