How Dubai Earned Its Place As A Global Financial Hub

Isabelle Weaver   May 27, 2016   Comments Off on How Dubai Earned Its Place As A Global Financial Hub

Dubai is ranked the 13th in the global financial centers index only falling behind Seoul as an Asian city. It is the financial hub for the Middle East, south Asia and Africa that which connects these regions of the world with highly developed and industrialized global markets in Europe and America. As Dubai is situated in the center of the world it is naturally a fantastic location and a platform for the world to interact with one another. The reason why Dubai developed in the reason past as a successful financial hub is due to its expertise in trading activities. Where there is trade there will always be the need for finance. Dubai recognized this need and took measures to develop the financial infrastructure, financial structures and management of assets and trading.

It was not an overnight feat. There were many strategic plans that were executed in order to become the Dubai International Financial Center (DIFC). The first step towards becoming a financial hub was the establishment of a federal financial free zone in Dubai. The commercial law in the UAE was abolished in Dubai and a common legal framework that represents international practices was introduced in order to attract investors by lightening the rules and regulations and financial restrictions. Financial regulations were made transparent and reliable to earn investor trust. The financial infrastructure facilities were remarkably developed to a world class standard with high quality office buildings, restaurants, retail stores, shopping malls, airports and roads and also developed the banking sector that offer a wide variety of services such as provision of credit, advisory services, RAK offshore company formation, insurance services etc.

There was a vacuum in the South Asian, African and Middle East regions for wealth and fund management in a regional level. Dubai entered this untapped market of financial service providing in a regional level. They focused the potential investors and penetrated their unaddressed needs by relaxing competitive tax rates and employment restrictions. It provided opportunities to financial professionals, lawyers, bankers, IT companies and other service providers such as insurers, brokers, and providers of RAK offshore company formation and information companies. Dubai’s geographical location is a superior advantage as it gives a favorable time zone that connects with business hours of most parts of the world.

Finally, looking at it in a social perspective, Dubai is definitely a nice place to live. It’s exciting, vibrant surroundings is enjoyed and valued by many as well as its open environment and other entertainment and leisure activities that are available. There are high quality infrastructure facilities available such as high quality hospitals, schools, shopping experiences and many other luxuries that make living a pleasure.