M
anypeople tend to associate
theprocess of total financial
integrationwithdevelopment
of international trade and
activities of transnational
financial corporations.
However, according toPolish analystMarek
Dombrowsky, themainmoving forceof this
process is technical progress. These are the
achievements in the fieldof transportation,
communications and, primarily, information
technologies, that allow significant reduction
of transaction costs and, as a result, increase
internationalmobilityof the capital.
Onecould theorize foragesabout this.However,
thosepeoplewhoare familiarwith theexperience
ofDubai International FinancialCenter (DIFC)had
anopportunity to findout that itwas thewell-
developed infrastructureofDubai asapowerful
businessand transporthubwhichprovided thebasis
forestablishmentof anefficient financial center.
FederalDecreeonestablishmentofDubai
International Financial Center asa freeeconomic
zonewas signed in June2004. Alreadyafter 3
months, inSeptember 2004,DIFCopened for
operationsand in2005,Dubai International Stock
Exchangebeganoperating. However, itwouldnot
becorrect toexplain suchdynamic implementation
ofDIFCprojectonlyby technical progress issues.
The factor that isnot always taken intoaccount
byeconomicexperts, though itplayscrucial role
– ispoliticalwill of theGovernmentofDubai and
FINANCIALPOLES
ofthePlanet
THE THEORY THAT GREATER FREEDOM IS A REQUIREMENT FOR GREATER MONEY IS
SELDOM DOUBTED TODAY AND IS, ACTUALLY, GENERALLY ACCEPTED. OVER THE PAST
THREE DECADES, THE NUMBER OF COUNTRIES OBSERVING THE PRINCIPLES OF FREE
CAPITALFLOWHAS INCREASEDSIGNIFICANTLY.LIBERALIZATIONOFCAPITALMOVEMENT
ISTIEDTOFINANCIALGLOBALIZATION. INOTHERWORDS, ITDEPENDSONTHEGROWING
INTEGRATIONOFFINANCIALMARKETS.
THEWELL-DEVELOPED
INFRASTRUCTURE
OFDUBAIASA
POWERFULBUSINESS
ANDTRANSPORTHUB
PROVIDEDTHEBASIS
FORESTABLISHMENTOF
DUBAI INTERNATIONAL
FINANCIALCENTER
its immediate involvement indevelopmentof the
infrastructure thatprovided success for theproject,
whichbegan influencing theworld financial system
from itsearlydays. Asa result,major investment
banks relocated theiroperations for this region from
their Londonoffices to thebranches inDubai.
Dubai Financial ServicesAdministration
(DFSA)playsan important role inengagingwith
international financial institutions. Lately,DFSA
concludedmemorandaof understandingwith
national banksand regulatorsof securities in
SwitzerlandandLuxembourg, aswell aswith
FinancialMarketsAdministrationof theNetherlands.
We can see that the level of these
agreements is quitehigh. For instance, Swiss
Federal BankingCommissionestablished in
1934, is an independent federal agencyof
Switzerland, responsible for supervisionof the
banks, investment funds, stock exchanges and
secondary securities exchangemarkets, dealers
in securities andderivatives. Undoubtedly,
the concludedbilateral relationswouldonly
contribute to thegrowthof thenumber of
financial institutions in Switzerlandoperating
throughDubai International Financial Center
– in theenvironmentwhere theduties of each
regulatorwouldbedetermined.
ParticipationofDutch financial services firms
in theoperationsatDubai International Financial
Center isanotherproof of highqualityof regulatory
standardsofDIFC.Detailed facts strengthen the
center’sauthorityandemphasize the importance
of cooperationwith it and informationexchange in
the sphereof financial services.
Today, Dubai International Financial Center is
the siteonwhich structures capableof bringing
major international investors to the Emirates
market operate successfully. For instance,
Moody’s Investors Service companydeclared
theofficial openingof its branch inDubai. It is
said that Dubai andDIFCwouldprovideMoody’s
with agoodbasis for resolutionof the issues of
regional demand and for competition analysis in
the fieldof credit andestimations.
Presenceof international financial service
institutions inDIFC, inparticular,Moody’s Investors
Servicewithmore than1,000analystswas
commentedbyOmar BinSuleiman, theHeadof
DIFC: “Maintaining thehighgrowth rate inmost
MiddleEast economieshelped the regionbecome
themainchoice for global investors,which, in turn
prioritized thecritical need in reliable information
about finance.Wedowelcome reputable financial
service institutions, includingMoody’s Investors
Service. Presenceof suchglobal organizations is
particularlyvaluable forDIFC”.
Actually, it is not clearwho is togainmore
from representation inDubai International
Financial Center – the center itself or those
organizations that figuredquickly thedemand
on theworld financialmarket anddecided to
make stronger presence in theGulf region. As
usual, withbigmoney, the answer cannot be
Dubai International Financial Center (DIFC)
BUSINESS EMIRATES
92
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ÓÊÐÀÈÍÀ -ÎÀÝ
