Luxembourg expects strong investment flows from Gulf

Dubai: Luxembourg expects to attract huge investments from the UAE and the Gulf region in European markets, senior Luxembourg officials who attended the ‘Dubai and Luxembourg, a partnership for financial services forum' said here yesterday.

"Europe has its share of crisis. It is enormous in nature, but it is too early to write it off as an investment destination. The continent has huge investment opportunities. I am sure a number of investors from the Gulf region will be keen to invest in Europe," Luc Frieden, Luxembourg's Minister of Finance, said.

The forum yesterday explored the possibility of cooperation between the Dubai International Financial Centre (DIFC) and Luxembourg for Finance, a public-private partnership between the Luxembourg Government and the Luxembourg Financial Industry Federation that is responsible for the development of its financial sector.

Expanding services

"With the new regulations, it is important that we continue supporting not only DIFC-based firms, but also those in the UAE and wider GCC by expanding the range of financial services and products available to them, especially in the current economic environment. I'm confident of DIFC's ability to respond swiftly to the changing and evolving regulations and look forward to developing today's discussions into real business opportunities," Abdullah Mohammad Al Awar, CEO of DIFC Authority, said in his opening remarks.

The forum brought together senior experts from both jurisdictions, who discussed the future of asset management, comparing the challenges that face the sector and the opportunities available.

The seminar also highlighted the importance of Dubai as a gateway to the MENA and Asian regions. Dubai's support for innovation in the financial sector was also considered a key for international companies in the finance and banking sector, especially with the trend towards offering a combination of products instead of a single structured product.

"Luxembourg is a diversified financial centre that is finely adapted to the needs of international clients, characteristics that are also true of the DIFC. As complementary regional financial centres, we look forward to developing ever closer ties in the years to come," Frieden said.

Closer regional ties

Luxembourg is also building close connections with Qatar.

Recently Qatar signed a number of agreements, including a memorandum of understanding on economic, trade and technical co-operation and an agreement on financial co-operation.

Qatari investment fund Precision Capital recently agreed to buy Luxembourg-based KBL European Private Bankers, the private banking division of Belgium's KBC Group and has also been involved in the purchase of a significant stake in the private banking arm of Dexia Bank.

Stronger relations

With a growing number of Luxembourg companies operating in the region and the expanding GCC investor interest in Europe, officials expect to see stronger relations developing between Luxembourg and some of the regional financial centres.

"Numerous Luxembourg companies do business with Dubai and some are interested in registering with the DIFC. These firms are attracted by a dynamic business environment and by the welcome they receive. I am confident that our two financial centres will continue to work successfully in partnership."