Dubai: HSBC Middle East Limited (HBME) in official filings to London Stock Exchange and Irish Stock Exchange on Thursday said it intends to transfer its place of incorporation and head office to the Dubai International Financial Centre.
“HBME, an indirect wholly-owned subsidiary of HSBC Holdings plc, which is currently incorporated and has its head office in Jersey, confirms that it intends to transfer its place of incorporation and head office to the Dubai International Financial Centre. This is subject to regulatory and all other applicable approvals,” the bank said in a statement.
Following the relocation, HBME will be lead-regulated by the Dubai Financial Services Authority (DFSA). This relocation is expected to complete during 2016.
The bank said the transfer of incorporation to the DIFC will have no impact on any of HBME’s local regulatory relationships in the Mena region, nor on its business in the countries in which it operates.
“We look forward to welcoming HSBC Bank Middle East — the largest and most widely represented international bank in the Middle East — to the region’s leading financial centre,” said Essa Kazim, Governor, Dubai International Financial Centre.
Businesses to thrive
“HBME’s intention to relocate its regional banking head office to Dubai is a testament to the UAE’s role as a location for businesses to thrive. It also reflects a long and deep history, given HBME was the first bank to open in Dubai in 1946 and today employs more than 4000 employees in the UAE,” he said
Over the last ten years, DIFC has developed a diverse business cluster representing leading institutions from the developed markets of the West and enterprises from the rapidly emerging economies of the East.
Mohammad Al Tuwaijri, Deputy Chairman and CEO, HSBC Mena, confirmed the bank’s announcement to both London Stock Exchange and Irish Stock Exchange on its intention move the bank’s place of incorporation.
“HSBC in the Middle East has been operating under the very effective regulatory regime administered by the Jersey Financial Services Commission (JFSC) for many years. As you would expect, the management team keeps the structure of our business under regular review, and has been considering this move for some time,” said Al Tuwaijri.
Broader relationship
He said aligning our business and regulatory oversight geographically makes strong strategic sense. The DIFC and its independent regulator, the DFSA, combine to offer a world-class financial services centre. “HSBC has operated certain businesses within the DIFC since 2006, so we know the jurisdiction and regulator well, and we look forward to our broader relationship with them.”
DIFC expects the HSBC’s decision to move its place of incorporation here will be big boost to its future growth strategy as global financial hub. “HBME’s choice of DIFC as its regional banking head office also confirms our DIFC 2024 growth strategy and reinforces the Centre’s position as an international commercial hub connecting businesses and financial institutions with opportunities across the emerging markets of the Middle East, Africa and South Asia. I am delighted that HBME intends to be an important part of our growth story,” said Kazim.
