Introduction to Abu Dhabi Global Markets
22 September, 2015
Dubai started the free zone concept some 30 years ago. Today, there are more than 30 free zones in Dubai and the concept has been copied by the other emirates forming the UAE. The DIFC (Dubai International Financial Centre) has become the most developed free zone, where the common language is English and it has its own courts.
Abu Dhabi has started to establish its own financial free zone under the name Abu Dhabi Global Market (ADGM). It will also be based on common law. It is to assume that it will copy a lot from the successful DIFC which has a track record of over 10 years. Hopefully, it will attract banks which really will book their clients assets in Abu Dhabi. The DIFC convinced some 300 financial institutions to open an office but only a handful really book in Dubai. The large majority act as asset managers, financial advisors or representative offices and book their client money in established places like London, Geneva and Singapore.
It will be doubtful that international financial institutions which already have a presence in Dubai will open an additional office in Abu Dhabi which is only an hours drive away from Dubai. However, it might be a convenient location for new set ups who want to be at the centre of the big money. About 90 percent of UAE oil income belongs to Abu Dhabi, as well as 87 percent of the land surface. Dubai is a lot less oil dependent and has become a successful hub not only for the financial sector but for most business activities. International companies like to set up in Dubai with its developed infrastructure and excellent flight connections where they can reach a population of two billion within 4 hours.
Our Business Development Officer Mr Winston Wambua (email@example.com) would be happy to discuss and clarify any matters that you may have.
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