Luxembourg and Dubai deepen collaboration
Dubai International Financial Centre (DIFC) and Luxembourg for Finance, signed a Memorandum of Understanding (MoU) to promote cooperation and industry development across a wide range of areas - including market access, financial regulations and infrastructure, training, and industry development for firms located in the two jurisdictions. A senior finance delegation from Luxembourg, led by Prince Guillaume, Crown Prince of Luxembourg, and the Dubai International Financial Centre held a seminar in Dubai, January 12, 2010 to explore opportunities for greater collaboration in financial services between the Grand Duchy and the MENA region.
While DIFC is the leading financial centre and global gateway for capital and investment in a region stretching between Europe and Asia, Luxembourg is the second largest investment fund centre in the world and the Eurozone’s premier hub for private banking. Both are looking to increase business opportunities for companies located in their jurisdictions.
“By working with other leading international financial centres such as Luxembourg, DIFC brings business opportunities and a continually expanding scope of financial products and services not only to DIFC-based firms, but to the UAE and wider region as well,” said H.E. Ahmed Humaid Al Tayer, DIFC Governor.
Like Luxembourg, the DIFC and UAE offer a high degree of political and social stability and a reliable legal and fiscal framework. And like Luxembourg, DIFC is able to act quickly and competently to adapt regulation to evolving international situations and to provide the legal basis for new business opportunities – all while maintaining a well-regulated onshore environment.
Fernand Grulms, CEO of Luxembourg for Finance, said, “Between Luxembourg and Dubai we see huge potential for bilateral business. However, in the complex world of finance, this can only be achieved by building partnerships among foreign financial centres, so that’s why we are pleased to be here today and to have signed this memorandum with DIFC. Luxembourg has enormous expertise to offer clients in the region and opportunities for collaboration with firms based in the MENA region.”
“International investors, including sovereign wealth funds from the MENA region, rely on Luxembourg expertise to structure their worldwide investments, namely in the area of real estate and private equity,” Grulms said. “For example, local know-how in setting up, administering and distributing investment funds has led the Bank of London and the Middle East (BLME) to launch a Shari’ah-compliant dollar income fund from Luxembourg.”
During the seminar, entitled “Luxembourg, a Global Financial Services Centre”, members of the Luxembourg delegation, which also included Luc Frieden, Minister of Finance highlighted the range of products and services offered from the European centre and identified areas for collaboration in the Middle East, particularly in the areas of wealth management and collective investments.