Dubai: HSBC Bank Middle East Limited (HBME), an indirect wholly-owned subsidiary of HSBC Holdings plc said on Thursday that it has transferred its place of incorporation and head office from Jersey to the Dubai International Financial Centre (DIFC) effective June 30, 2016.
HBME in official filings to London Stock Exchange and Irish Stock Exchange in September 2015 said it intends to transfer its place of incorporation and head office to the DIFC.
As a result of the transfer, HBME is now lead-regulated by the Dubai Financial Services Authority (DFSA). HBME remains locally regulated in each of the countries in which it operates by the country’s central bank and its other regulators.
“The relocation has no material impact on HBME’s business in the Mena region,” the company said in a statement.
HBME in the Mena region has been operating under regulatory regime administered by the Jersey Financial Services Commission (JFSC) for the past twelve years.
“As we look to the future, 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 developing our broader relationship with them,” said David Eldon, Chairman of HSBC Bank Middle East Limited.
HBME’s decision to move its place of incorporation to the DIFC is seen as a big boost to its future growth strategy as global financial hub. “The relocation of HSBC’s regional management office to DIFC reinforces the attractiveness as well competitiveness of the UAE economy to international players in the banking and financial services sector,” said Essa Kazim, Governor of the DIFC.
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. The transfer will attract assets valued at more than $40 billion (Dh147 billion) on the balance sheet to DIFC.
“HBME operations at DIFC will be regulated by our independent regulator DFSA for the entire Middle East region, further strengthening the credibility of our regulatory regime and benefit our clients and stakeholders. I am confident that through its presence at DIFC, HBME will play an important role in fostering closer ties among the financial communities in the Mena region,” said Kazim.