Moscow: Dubai has world-class financial regulation at the Dubai International Financial Centre (DIFC) and the experience and ability to put all components in place, a senior executive said Wednesday.
Offering to help Russia in its own efforts to set up an international financial centre based in Moscow, DIFC chief executive Abdullah Al Awar said such a centre based in Moscow will be a welcome addition to other major financial centres.
Al Awar was speaking at a session on Moscow International Financial Centre (MIFC) at the Russia Calling Forum organised by VTB Bank.
At an earlier session, Russian Finance Minister Alexei Kudrin said Russia is in the early stages of discussions on setting up an international financial centre in Moscow and large foreign companies will start making initial public offerings at MIFC "within the next three to five years".
Necessary legislation
"Russia will put the necessary legislation in place within the next two years. Russian companies hold IPOs in Moscow all the time. To be considered an international centre, of course, we need large [international IPOs], but they are unlikely to happen very soon," Kudrin said.
The creation of an MIFC, one of President Dmitry Medvedev's fav-ourite projects, was proposed about two years ago. Speakers at the event said Moscow must learn from London and be more welcoming to its business partners if it wants to become an international financial centre.
"We should be open and welcoming to those who come here to do business," said Alexander Voloshin, Head of the Moscow Financial Center Task Force.
He said work is being carried out on improving the city's financial infrastructure, and regulating financial markets, the judicial system and migration and tax policies.
International staff
Voloshin said increasing the number of international staff in Russian companies and the financial industry's share in the city's budget by up to 40 per cent would also benefit the success of the centre.
The task force chief expects the financial centre to add significantly to creating a full-fledged regional banking system in Russia. With plenty of banks in place in Moscow, more efforts are needed to start forming a relevant banking system in Russian regions, he said.
Speakers said Moscow has already emerged as a successful regional financial centre, boosting trade and economic activities in the country and CIS countries.
"Promoting financial integration between Russia and the rest of the world remains a key priority, which will contribute to Russia's status as a major international player to be reckoned with," said Ruben Aganbegyan, President of Moscow Interbank Currency Exchange.
Cooperation need
"In this respect, we see the need in cooperating more with Russian regions, whose economic landscape and organisation drive will add greatly to creating a global financial centre in Russia."
