Business | Markets
DIFC has broad industry reach
Framework creates environment for growth The necessary structures needed to operate efficiently and cost-effectively are in place
- By Babu Das Augustine Deputy Business Editor, Gulf News
- Published: 00:00 November 9, 2009
- Image Credit: Supplied picture
- Abdullah Mohammad Al Awar, CEO of the DIFC Authority, said the centre "will strive to adapt quickly to the new global financial architecture" and changing industry needs.
Dubai: The financial services community in the DIFC is home to companies representing a wide cross section of the industry.
Apart from the fact that most of the leading global financial institutions in each major industry sector have a presence in the DIFC, the financial activity conducted from the Centre has grown in sophistication.
Ground-breaking legislation has enabled companies both in mainstream as well as niche sectors to establish the structures necessary for them to operate efficiently and cost effectively.
One of the principal factors behind the success of the DIFC is its independent risk-based regulator, the Dubai Financial Services Authority (DFSA), which grants licenses and regulates the activities of financial services conducted through the DIFC.
"[The] DIFC with its very attractive legal and regulatory framework is a preferred gateway to this region, ideally positioned between the western and eastern financial markets," says Dr Josef Ackermann, Chairman to the Management Board and the Group Executive Committee of Deutsche Bank.
The presence of an efficient, modern and independent regulator has given companies the confidence that they have a secure, growth-oriented platform for their business.
"The DFSA has been successful in developing, administering and enforcing regulations of genuine world-class quality. We are optimistic about the future, as a result of this strong foundation laid over the last five years," says Paul M Koster, Chief Executive of the DFSA.
Innovation
Over the years, the DFSA has promulgated innovative regulations and introduced regulatory amendments to meet the latest market trends and the rapidly changing needs of the industry. In the past five years, the DFSA has established a credible track record of regulation.
"Over the coming years, the DIFC will invest further in the development of its regulatory regime and its capital market infrastructure to further diversify and deepen its financial services cluster. DIFC will strive to adapt quickly to the new global financial architecture and the changing needs of the financial services industry," said Abdullah Mohammad Al Awar, CEO, DIFC Authority.
The DFSA's standards and implementation of international best practices were evaluated by the International Monetary Fund (IMF) and World Bank, in their Financial System Stability Assessment Programme (FSAP) report on the UAE for the year 2007 and it received a highly positive assessment.
Currently, the DFSA supervises more than 300 entities in DIFC. Effective supervision and control of risk is handled by a team of experienced and respected regulators.
To ensure proper conduct of business oversight and detection of business trends and risks impacting the Centre, the DFSA created a Special Surveillance Unit in 2009.
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