Tighten rules on financial services

If Dubai wants to become a financial services hub it needs solid foundations. Inter alia, it probably needs to tighten regulations on financial advisory services. A recent survey revealed that 70 per cent of UAE residents do not use financial advisers, but rely on their own judgements or word of mouth. Part of that story may be a matter of trust.

The UAE has more than 60,000 millionaires and a large number of high-net-worth individuals. A lot of investors have placed their hard-earned money into savings schemes, only to learn later that their pot has shrunk. Some have felt duped. Tightening regulations might include professional certification, to help re-establish faith among consumers who could really benefit from the knowledge that the advisory industry possesses. A continuing lack of professionalism, by contrast, could further alienate the high-net-worth segment. It's surely a problem which both clients and providers must want to fix.