Dubai to put GCC on global financial map
The study, titled ‘The Gulf as a Global Financial Centre: Growing Opportunities and International Influence’, examined the prospects for the economies of GCC countries and the potential development of the region as a global financial centre.
It pointed to Dubai’s high ranking in the City of London’s Global Financial Centres Index (GFCI) for March, which ranked the emirate 24th, ahead of cities such as Shanghai, Stockholm, Brussels, Mumbai and Madrid.
The report by UK-based Chatham House highlighted the fact that, outside Europe and North America, Dubai was ranked fifth in the world in the London survey. Dubai was also cited by the survey as being the number one among financial centres to “become significantly more important over the next two to three years”.
As a destination where businesses are considering opening in the next few years, Dubai was ranked number one. Bahrain was ranked 39th while Qatar was ranked 47th in the overall GFCI Index.
Dr Omar bin Sulaiman, Governor of Dubai International Financial Centre, said: “Dubai’s high international ranking in the global financial industry is a tribute to the economic vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.
“His guidance has inspired the development of the DIFC, the institution that has primarily been responsible for transforming Dubai into a global financial centre. With the new initiatives being undertaken by DIFC, Dubai is poised to develop further as an industry hub that rivals many of the world’s most prominent financial centres.”
Extrapolating from the GFCI report and its own estimates for economic and financial sector growth, Chatham House said the GCC could overtake both Australia and Tokyo in the rankings over the next decade. The GCC economy has approximately tripled in size in five years and the combined GDP will be well above $1trillion (Dh3.67trn) in 2008, while the states’ external financial wealth in the form of sovereign wealth funds (SWFs) and foreign exchange reserves alone is more than double this figure, the study said.
Dr Paola Subacchi, Research Director for International Economics at Chatham House, London said: “The report shows the great dynamism of the GCC economies and their capacity to be serious players in the world economy. Chatham House is particularly pleased to have worked together with the three financial centres of the region – DIFC, QFCA and Bahrain EDB – for the completion of this project which further contributes to put the GCC under the spotlight.”
The GCC “brand”, which has been successful in promoting the visibility and image of the region, should be actively pursued to further enhance market power and credibility, the Chatham House study said.
“Economic growth and wealth creation,” it said, “will continue to provide the big punch behind the ‘brand’.”
The study also touched on the need for GCC countries to “aggressively” correct the tendency for observers to view the region as a “developing economy”.
The GCC’s average GDP per capita is now almost on par with many developed economies such as Spain while its non-energy GDP per capita is well above emerging-market levels, the study noted.