Technology is about the business of now not tomorrow

Over the years, the way international finance works has changed dramatically. Ever increasing technological innovation has demanded that financial centres revamp their infrastructure to stay competitive.

In a global market that is being dominated by Web-based mobile devices, clients are demanding seamless integration of their financial services across all platforms. Financial firms are therefore becoming more technology-savvy with the need to employ new technologies to navigate this complex financial landscape.

The result of this march towards ever more advanced know-how has been increasingly fast-paced financial transactions. Today, our business lives and works in real time. For this reason, the financial centres of London, New York, Singapore, Hong Kong and, of course, Dubai are competing fiercely for the title of ICT leader, offering the greatest connectivity in facilitating trade and investment.

It is true that over the next decade, the growth financial service sector will depend on a number of factors — regulatory environment, competition and the continuous development of ICT, as one of the major factors influencing the competitiveness of a financial centre.

Connectivity

Using technology to enhance competitiveness in the business of now, not tomorrow, is a financial centre’s core objective.

“Smart” is the buzzword of our times today. Everything is now connected — smart homes, smart cars, smart cities, smart infrastructure and global connectivity. Connectivity is permanent — from person to person, internationally.

Dubai was quick to understand this point, and one only needs to look at the emirate’s rapid expansion as a hub for tourism and trade to appreciate its significant investment in improved connectivity. The benefits for the region’s financial sector are tangible, with the industry contributing 12 per cent of Dubai’s GDP today and as much as 18 per cent within the next decade.

Unsurprisingly, connectivity was a dominant theme at the latest edition of the global ICT trade show GITEX recently. At DIFC, we took advantage of the event to unveil a partnership with the UAE telecom service provider du, offering enhanced telecommunications and Web-based services to our clients.

But it’s not just about the services individual companies provide. Arguably the most exciting initiative to be undertaken to improve connectivity in recent years has been the decision of His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, to transform Dubai as a whole into a “Smart City”. The aim is to achieve seamless integration of ICT infrastructure across a range of strategic economic sectors, including transport, communications, energy and urban development. As many as 1,000 existing government services will be revamped as part of the Smart City drive over the next three years.

Rankings

The potential impact on the business community is immense. It is hardly surprising that Dubai jumped seven rankings in the recently published Global Financial Centres Index Report, which placed Dubai first in the Middle East and North Africa region.

ICT leadership and integration create economies of scale, stimulate business opportunities and improve quality of life. Further regulatory improvements are needed to realise Dubai’s Smart City transformation, but arguably the top priority to ensure momentum is sustained is continued development of our ICT workforce, through training, education and R&D.

Next generation financial transactions are on the horizon. Investing in advanced technology across all financial service channels ensures that the proper foundations are laid for the financial sector to receive a major boost.

Technology may be the differentiating factor in the competitive battle between the leading financial centres of the world, but people and talent remain equally critical ingredients.

Arif Amiri is Chief Executive Officer, Dubai International Financial Centre Authority