Market depth and infrastructure threaten Dubai

Market depth and infrastructure threaten Dubai

Dubai's burgeoning status as an international financial centre could be threatened unless more work is done to improve the maturity of its financial markets and financial infrastructure, a report by Cass Business School has said.

The report, Dubai as an International Financial Centre: Threats and Opportunities, sponsored by financial messaging service Swift, and launched at the Sibos conference, being held in Dubai, presents a road map for Dubai's growth as a global financial hub.

Professor of finance, Steve Thomas said: “Dubai is becoming increasingly important as a financial and trading entrepôt for the Middle East and Whole of Africa with its strong recovery from the financial crisis testimony to its energy and creativity.

“The continuing strengthening of institutions and markets is key to securing ongoing progress at a turbulent time for both the region and the global economy.”

The research argues that Dubai has the potential to develop into the pre-eminent financial hub for Middle East and Whole of Africa region, with world class infrastructure and a diverse range financial services companies established in the emirate.

However, the report said Dubai needed to improve the maturity of its equity and debt markets and its financial infrastructure, by attracting further listings to the exchange and encouraging more foreign investors and firms.

It added that implementing self-assessment based on the CPSS-Iosco Principles of Financial Market Infrastructures would be an important step to make sure Dubai’s financial infrastructure adhered to industry best practices.

Alain Raes, chief executive, Emea & Apac, Swift, said: “Dubai is growing in importance as a regional hub for trade and finance, and many businesses are building their presence here, Swift included.

“This report is important because it offers timely insights into Dubai’s competitors in the region and how it compares to international financial centres around the world. The report also identifies what Dubai needs to do to achieve its ambitions.”