RSSDubai Crown Prince General Sheikh Mohammed bin Rashid Al Maktoum has been confirmed as the President of the Dubai International Financial Centre.
His Highness is the bold visionary behind this ambitious project designed to turn Dubai into a world-class financial centre. This is the same type of vision that has turned a piece of desert into the thriving Dubai Media and Internet City complex in a little more than four years.
Parallel to the creation of the DIFC itself, the decree also creates the DIFC Financial Services Authority, DIFC Judicial Establishments and the DIFC Registry of Companies. These are the institutions that will allow the DIFC to operate under the umbrella of, but independent of, UAE federal law.
Expect to see a series of big names now to emerge with licenses to operate in the DIFC. Such global giants as HSBC, Deutsche Bank and Standard Chartered Bank have made no secret of their interest.
Essentially the DIFC fills a gap in the global financial community between Singapore and Europe, and just happens to be in the middle of one of the wealthiest regions on earth. For the DIFC now offers the kind of English language regulatory framework with transparency and independence only seen in these major markets.
By comparison Bahrain is a regional player with a predominance of the Arabic language and Sharia law. This is fine as a niche business, but English is the language of global finance and its legal system. Dubai now claims this valuable prize, and has the infrastructure to match, unlike Bahrain.
It says it all that when Michael Schumacher raced in Bahrain's Formula One event this year he chose to stay at a hotel in Dubai and fly up to Bahrain and back for the race itself. The bankers of the world are no less discerning.
However, the challenge for Dubai will now be to deliver on its promise and provide a dynamic and open business environment, with appropriate levels of regulation that will both attract the big names of global finance and encourage them to build up large business operations in Dubai.
All the historical precedent suggests that Dubai will do this. The plan for the DIFC as a 'city within a city' is truly awesome and this project enjoys the full support of the local business community.
