His Excellency Dr. Omar Bin Sulaiman is the Governor of Dubai International Financial Centre (DIFC). In 2008, HE Dr. Omar Bin Sulaiman was appointed as the Vice Chairman of the UAE Central Bank, a position with the rank of Minister in the Federal Government of the UAE. Under his leadership, Dubai International Financial Centre significantly raised its profile as a leading global financial centre.
What was the original vision behind the establishment of the DIFC?
The original vision behind DIFC was to create an international financial centre that would shape the future of the world’s financial map by being a key global gateway for capital and investment.
How far has that vision been made reality over the last five years?
DIFC’s growth and achievements over the last five years has substantially contributed to Dubai’s emergence as one of the key players amongst the world’s leading financial centres such as New York, London and Hong Kong. Several global industry surveys conducted over the past two years have confirmed Dubai’s clear potential for global leadership. Over the last five years, the number of registered companies in DIFC grew at a compound annual growth rate of (CAGR) of 127 per cent. This exceptional growth figure demonstrates the confidence of the global financial industry in DIFC. Today, as many as 20 of the world’s top 25 banks and six of the world’s 10 largest asset managers have established a presence in DIFC. Over 850 companies have registered themselves in DIFC while 14,000 professionals currently work in the financial district.
What is the DIFC’s role in the development and growth of the Dubai economy?
In the years ahead, we see DIFC as a contributor towards the UAE’s key role in the world economy. The global financial crisis is bringing about a restructuring of the world economy creating a historic opportunity for emerging markets to grow in importance over the next decade. By virtue of being a financial hub for a region that has some of the world’s most dynamic emerging markets, DIFC will play a more prominent role in the world’s new financial geography.
What governed the choices made in setting up the DIFC’s regulatory framework – the DFSA and the DIFC Courts?
The DFSA and the DIFC Courts were established as part of our objective to create an financial industry environment that fosters integrity, transparency and efficiency. The DFSA helped create such an environment by establishing a clear and succinct regulatory framework based on international best practices. The regulatory framework gives companies the confidence that they have a sound, stable, secure and growth-oriented platform for their business. The DIFC Courts also contributed to promoting such an environment by ensuring the highest international standards of legal procedure. The DIFC Courts provides the certainty and efficiency expected by the global institutions operating within the financial centre.
Do you see the DIFC as a global financial centre in the making or as a gateway to the region?
DIFC is both a global financial centre as well as a gateway to capital and investment in a vast region extending from North Africa to the Indian subcontinent and East Africa to the Caspian.
What role do you see the DIFC having in the global financial system?
The past decade has seen a major shift in the balance of global economic power and a clear move to a multi-polar global economy, a move accelerated by the current global economic crisis. Emerging economies are playing an increasingly bigger role in shaping global economic growth. As developed markets deal with the fallout of the crisis, there is a historic opportunity for emerging markets to gain in importance over the next decade. This is particularly true of the fast-growing economies in the vast region stretching from North Africa to India and the Caspian to East Africa. As a global financial centre at the heart of this dynamic region, DIFC has a key role to play in facilitating capital flows and promoting financial and capital market development.
How important is Islamic finance to the DIFC?
Islamic Finance is one of the major pillars of DIFC’s gross strategy. We recognise the growing role and profile of Islamic finance in the global economy. We have been active in supporting the development of the sector in a number of ways. Firstly we provide a legal and institutional infrastructure necessary to support this fast-growing sector. Secondly, we have been promoting standardisation in the industry. We recently jointly developed and launched the standardised contract for Commodity Murabaha transaction, the Master Agreement for Treasury Placement (MATP) along with the International Islamic Finance Market and other regional and international institutions. We are working with global educational institutions to facilitate the delivery of Islamic finance programmes. The world’s first executive MBA in Islamic finance launched by Cass Business School from the DIFC’s Centre of Excellence is an example of this. Initiatives such as these have helped develop a critical mass of international conventional institutions, Islamic institutions and Islamic windows within DIFC, which allows for expertise and skills to be shared.
What advantages does the DIFC offer to those firms which choose to set up in within the DIFC?
DIFC provides a complete industry ecosystem for financial companies and ancillary service providers to operate securely and productively. DIFC’s value offering includes an independent regulatory framework and judicial system, a financial exchange, a physical infrastructure that meets and even exceeds global benchmarks, and a range of business support services and financial incentives. These have been designed to give companies a stable and secure platform while also helping them easily access key markets and critical support services and minimise the costs of doing business. In addition to this, DIFC has also developed an array of institutions that addresses key industry drivers like corporate governance, directorship, professional education, and technology. All these provide immense resources for the long-term development of financial companies and ancillary service providers. Another key advantage offered by DIFC is that it is a ‘city within a city’ that offers financial professionals the ultimate location for work, life and leisure. DIFC has developed a high-end lifestyle offering that includes a rich choice of luxury retail, fashion, premium restaurants and fine art.
Hundreds of firms have located in the DIFC, with almost 900 entities listed on your company register; how do you ensure that you attract the right mix of businesses?
The licensing categories of DIFC have been designed to attract the optimal mix of businesses that can support the growth of the financial industry and capital markets. DIFC, in close coordination with the DFSA has also developed a legislative and regulatory framework that supports not only the growth of mainstream sectors but also high-potential and high-value niche sectors in the financial industry.
You’ve made a number of strategic international purchases through DIFC Investments – what governed the choice of investments?
DIFC Investments’ choice of investments is based on obtaining strategic stakes or acquiring companies that can add significant value to the growth of DIFC as well as the region’s financial industry. For example, our acquisition of SmartStream Technologies, a company providing enterprise-wide, real-time Transaction Lifecycle Management (TLM) solutions to more than 75 of the world’s top 100 banks. SmartStream’s was aimed at boosting the development of world-class technology infrastructure in the region.
What plans does the DIFC have to grow internationally?
DIFC is implementing revised strategies and launching new programmes to strengthen its global position and attract an even larger number of international financial institutions. We are actively seeking to strengthen our ties with key emerging and established financial markets around the world. Apart from raising our profile in developed markets, DIFC is also making a strong effort to build ties with companies, policymakers and other industry players across its wide regional footprint that extends from North Africa to South Asia and the Caspian to East Africa.
Where do you see the DIFC in five years’ time?
In the next five years, we will be working to close the gap with the highest ranked financial centres in the world. We aim to develop the same stature as New York, London and Hong Kong, primarily serving the vast region between Western Europe and East Asia. To achieve this, we will be working to further diversify and deepen the financial services cluster in DIFC. We will be investing further in the development of our regulatory regime and capital market infrastructure to facilitate this. Working closely with the DFSA, DIFC will strive to adapt quickly to the new global financial architecture and the changing needs of the financial services industry. DIFC will also actively encourage and nurture innovation across its sectors of focus, particularly in the areas of Islamic finance, family offices, captive insurance and private equity so that the industry cluster can move up the value chain.† And ultimately we will further consolidate our position as the region’s leading international financial centre and the catalyst for continued regional economic growth, development and diversification.