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Financial System Strategy2020

FSS 2020 International Conference

“Dubai International Financial Centre”An Overview, June 2007

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Why Dubai?

Political and Economic stability Proactive government policies aimed at economic diversification and liberalization

Full government support for new global initiatives

Business Centric Recognized as a regional hub with a successful and credible track record No direct taxes on corporate profits/personal income 100% repatriation of capital and profit Diversely skilled, well educated, multi cultural & multi lingual workforce Modern Infrastructure in accordance with the most efficient international

standards. Investment in infrastructure has resulted in lower cost of doing business, logistics and delivery of services.

Modern telecommunication networks and highest internet penetration and utilization rates in the MENA region

A destination of choice for FDI with over 150 multi-national companies of the Global 500, including the Top 10 have an established presence in Dubai.

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TradeLogisticsTransportationTourism

TechnologyEnabled services• Telecom• Media• IT• Energy• Healthcare• Financial

EducationEmerging Sectors

• Biotech• Nanotech• R & D

Short Term Impact Long Term Impact

Horizon 1

“Do w

hat we do best,

better”

Horizon 2

“Apply

core co

mpetencies t

o new

areas”

Horizon 3

Dubai 2015

“Seed in

vestm

ents for fu

ture

competencie

s”Higher impact on Knowledge Economy

Lower impact on Knowledge Economy

Dubai Strategic Plan 2015 – Horizon 1

Source: Dubai International Airport, Department of Civil Aviation Dubai, DP World

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Why Dubai?

Excellent Global Connectivity

World’s third largest active re-export hub after Singapore & Hong Kong

Jebel Ali is the world’s largest man-made port, home to 5,500 companies from over 120 countries

Dubai Ports ranked as 9th Top Container Port Worldwide servicing more than 120 shipping lines with 7.62 million TEUs handled in 2005.

Dubai Airport connecting 113 airlines and serving over 194 destinations In 2006 airport traffic hit 28.7 million passengers; expected to grow to 60 million by 2010

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Why Dubai?

Strategic central location Favourable tax structure Competitive business environment Quality of life Pro-business government Language skills Dynamic business environment Flexibility labour market Advantageous time zone World-class Infrastructure Proximity to existing operation/production site

Dubai is a preferred location for regional and global HQs of many transnational and multinational corporations.

Dubai ranks strong on all relocation measures.

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TradeLogisticsTransportationTourism

TechnologyEnabled services• Telecom• Media• IT• Energy• Healthcare• Financial

EducationEmerging Sectors

• Biotech• Nanotech• R & D

Short Term Impact Long Term Impact

Horizon 1

“Do w

hat we do best,

better”

Horizon 2

“Apply

core co

mpetencies t

o new

areas”

Horizon 3

Dubai 2015

“Seed in

vestm

ents for fu

ture

competencie

s”Higher impact on Knowledge Economy

Lower impact on Knowledge Economy

Dubai Strategic Plan 2015 - Horizon 2

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Cluster Based Economy

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TradeLogisticsTransportationTourism

TechnologyEnabled services• Telecom• Media• IT• Energy• Healthcare• Financial

EducationEmerging Sectors

• Biotech• Nanotech• R & D

Short Term Impact Long Term Impact

Horizon 1

“Do w

hat we do best,

better”

Horizon 2

“Apply

core co

mpetencies t

o new

areas”

Horizon 3

Dubai 2015

“Seed in

vestm

ents for fu

ture

competencie

s”Higher impact on Knowledge Economy

Lower impact on Knowledge Economy

Dubai Strategic Plan 2015 - Horizon 3

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Dubai 2015: Strategy Highlights

Economic Development Aims:

Sustain a GDP growth rate of 11% per annum

Achieve a GDP per capita of USD 44,000

Increase productivity by 4% per annum

Move existing sectors of strength to new frontiers, both domestically and internationally

1 Source: EIU Data

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DIFC Region - A Favourable Economic Environment

• 42 countries spanning the Middle East, North & Eastern Africa, the Caspian and the Subcontinent

• Population of 2.2 billion people (2005)

• US$2.3 trillion combined GDP (2005)1

• Financial wealth of high net worth individuals in the Middle East region is estimated to be growing at 19.7%, surpassing the pace of growth of that in North America, Europe and Asia Pacific.2

• Regional wealth invested abroad: $1.8 trillion

• DIFC Region Total Exports > US$1 trillion (2006)

• DIFC Region Total Imports > US$850 billion (2006)1

2 Source: Merrill Lynch Capgemini World Wealth Report 2006

Meed Projects. Data as of May 24, 2006

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A Window to Regional Opportunities…

High oil prices, increased government spending and abundant liquidity have generated an investment and consumption boom that is stimulating growth in the region.

Regional governments pursuing diversification strategies, adopting economic reforms, state divestment & privatisation plans, resulting in attractive prospects across a variety of sectors.

Projects Planned and/or Currently Underway in the Gulf Region

** Value in USD millions

  UAE Bahrain Kuwait Qatar KSA Oman Iran Iraq Total Value

Oil & Gas 32,633 1,110 26,228 59,725 44,605 9,860 54,845 10,155 239,161

Construction 264,501 21,740 170,375 36,326 83,349 10,135 4,275 14,180 604,881

Industry 15,980 2,705 2,130 5,030 10,585 3,450 5,335 1,218 46,433

Power 16,970 1,305 5,632 6,303 23,115 2,610 11,613 2,680 70,228

Petrochemicals 6,350 1,000 4,270 9,720 55,002 7,250 20,240 175 104,007

Water & Waste 2,035 1,070 2,380 1,173 5,500 2,140 560 50 14,908

Total Value 338,469 28,930 211,015 118,277 222,156 35,445 96,868 28,458 1,079,618

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DIFC- Structure

Dubai International Financial Centre Authority

(DIFC Authority)

Dubai Financial Services Authority (DFSA)

Dubai International Financial Centre Judicial Authority

(DIFC Courts)

Registrar of CompaniesRegistrar of Security DIFC Investments

Dubai International Financial Exchange Limited

(DIFX)

HawkamahCorporate Governance

Institute (CGI)

Office of the President of the DIFCheaded by DIFC Governor(Dr. Omar Bin Sulaiman)

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DIFC- Value Proposition

DIFC Courts: Independent

Judicial System

DIFX: Liquid & Transparent

International Exchange

Window to a wealth of opportunities

DIFC Resource Centre:Business Support

Services

A Clear & TransparentLegislationDFSA: World Class

Regulations

A dedicated financial services cluster

Hawkamah Institute forCorporate Governance

DIFC Education Strategy:

Access to Talent

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Sectors of Focus

• Banking Services • (Investment Banking, Corporate Banking & Private

Banking)

• Capital Markets• (Equity, Debt Instruments, Derivatives and Commodity

Trading)

• Asset Management & Fund Registration

• Islamic Finance

• Insurance & Reinsurance

• Business Processing Operations

• Ancillary Services

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A Liquid & Transparent International Exchange

Sydney

Tokyo

International Investors seeking

Regional Investments

Regional Investors seeking International

Investments

International Issuers seeking

Regional Investors

Regional Issuers seeking International

Investors

Liquidity secured through regional and international liquidity providers and market makers

A Platform for…

Data as of January 4th 2007

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DIFC Achievements

ASPs

Insurance Broking & Mgmt

Re-InsuranceBanking Services

Non-Regulated

Asset Mgmt &Fund Registration

Islamic Finance

Zurich

AIG

Alico

JLT Risk Solutions

Takaful Re

Alliance Re

Scottish Re

InjazatCrescent Standard

Arcap InssefUnicorn Inv. BankAmanah Fin. Ser.

SEDCO

Ansbacher

SHUAA Capital

Franklin Templeton

Mellon Global Invs.

Merrill Lynch

EFG HermesDeutsche BankCredit Suisse

HSBCStandard Chartered

Barclays BankCitigroup

Bloomberg

IFC

SWIFT

Dubai Int’l Capital

Moody’s

Schlumberger

Al Tamimi & Co.

KPMG

Grant Thornton

Clifford Chance

Allen & OveryLinklaters

TOTAL=352

for more information please refer to www.difx.ae

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A Strong Ramp Up of Members…

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DIFC

1990

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After 2000

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DIFC District

Gate DistrictGate Village District

Park Avenue

Gate Boulevard

Central District

Park Boulevard

Central Park

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DIFC District

Data based on Internal estimates

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DIFC Population Potential

Population Count 2005 2006 2007 2008 2009 2010

Office Employees 901 4,794 10,501 25,812 34,512 34,932

Retail Shops Employees 23 203 478 1,559 2,768 2,841

Residential Population - - 952 7,006 10,022 10,190

Hotel Employees - - 223 1,739 1,819 1,823

Other Employees - - - 613 707 710

             

Total 924 4,997 12,154 36,729 49,828 50,496

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A Cosmopolitan District

• A self-contained ultra-modern financial district, housing offices, serviced apartments, hotels, shops and restaurants.

• 4 million square feet of ultra-modern prime office space, designed to meet, and exceed, the demands of the world’s most sophisticated international financial institutions.

• 32,698 underground car parking spaces and an automated transit system which will circumnavigate the entire district.

• World-class infrastructure with access to an excellent and sophisticated telecommunication infrastructure, facilitating easy communication with U.S., Europe and Asia.

• Locating in a dedicated financial services hub with access to reputable professional services and operational support firms, and in close physical proximity to a wealth of business opportunities.

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Financial System Strategy2020