(MENAFN- Khaleej Times) For a city that is strategically located at the crossroads of major international trading routes, Dubai has gained prominence over the past few decades.
From hundreds of traders from the sub-continent, who set up small entities in the emirate in the first half of the 20th century, to aggressive Indian producers and traders who set up a vast presence over the past four decades, Dubai has become a major hub for innovative investors looking to expand their global horizon.
Indeed, there are numerous instances of small traders from India who migrated to Dubai over the past few decades, built up their businesses and saw them expand into major manufacturing and trading entities. Today, many of these cater to the needs of buyers in the Middle East, Central Asia, Africa and other distant markets.
The 21st century has seen a major transformation in the Dubai economy, which is today a vibrant trading hub, attracting investors from around the globe. The Dubai International Financial Centre was established in 2004 as an onshore financial centre strategically located between the East and West, providing a secure and efficient platform for businesses and financial institutions to reach into and out of the emerging markets of the region.
The quality and range of DIFC's independent regulation, common law framework, supportive infrastructure and its tax-friendly regime make it the perfect base to take advantage of the region's rapidly growing demand for financial and business services.
The centre provides a wide range of services to international companies setting up their presence. The quality and range of DIFC's independent regulation, common law framework, supportive infrastructure and its tax-friendly regime make it the perfect base to take advantage of the region's rapidly growing demand for financial and business services.
DIFC fills the time-zone gap for a global financial centre between the leading financial centres of London and New York in the West and Hong Kong and Tokyo in the East. And guided by its core values of integrity, transparency and efficiency, DIFC plays a pivotal role in meeting the growing financial needs of the region.
And global investors have been flocking to the DIFC in recent years, raising it to the level of London's business district, Canary Wharf, or Singapore's Marina Bay. Indeed, it has become the most attractive destination for investors from across the globe, especially India.
More than 1,750 companies have a presence at the DIFC and more than 22,000 professionals are employed at the centre.
Indian companies, especially from the banking and financial services sector, have responded overwhelmingly by setting up their presence at the centre. The DIFC says it would be hosting about 100 Indian companies in just about five to six years. The first Indian financial institution to set up a presence was in 2007.
Recent months have seen several Indian financial institutions strengthen their presence at the DIFC. They include ICICI Bank, Axis Bank and HDFC Life. The centre is also home to other leading banks, financial institutions and fund managers from India including State Bank of India, Punjab National Bank, IDBI Bank, Aditya Birla Sun Life Asset Management Co Ltd, IIFL Private Wealth Management and L & T Capital Markets Ltd.
DIFC has also signed two separate MoUs with the Gujarat International Finance Tec-City (GIFT), India's first financial services centre, and Mumbai Metropolitan Region Developmental Authority (MMRDA), the urban town planning and development authority established by the Maharashtra state government. Both MoUs provide for the sharing of knowledge and international best practice.
According to Salmaan Jaffery, Chief Business Development Officer at DIFC Authority, "We are living in an era where UAE-India ties are accelerating. With 2.6 million Indian expats living in the UAE, 26,000 Indian firms and over 40,000 UAE-based firms owned by non-resident Indians, the bond between the UAE and India is already strong."
Indian institutions make up the third largest community of financial firms at DIFC, behind the U.S. and the U.K. He notes that DIFC is an important link for India in the South-South corridor, connecting the subcontinent to Africa and Central Asia. "There is a huge opportunity for Indian firms looking to conduct business in DIFC."
Last year, FinTech Hive was set up at the DIFC, the first FinTech accelerator in the region. It has since become the most popular FinTech programme in the region, attracting over 45 global, regional and local partners and participants. DIFC recently announced plans to triple its commitment to FinTech for 2018 with a focus on RegTech and InsurTech.
The centre is also launching a $100 million fund to support incubating and growth stage firms and to ensure that its FinTech proposition is the most comprehensive in the region.
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Nithin Belle
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