Luxembourg and Dubai Deepen Collaboration in the Field of Financial ServicesPress Release 12 Jan 2010 07:06 am
'Luxembourg for Finance' and DIFC sign Memorandum of Understanding to promote industry development and regulatory cooperation that will benefit Luxembourg and MENA region
A senior finance delegation from Luxembourg, led by Prince Guillaume, Crown Prince of Luxembourg, and the Dubai International Financial Centre (DIFC) held a seminar today to explore opportunities for greater collaboration in financial services between the Grand Duchy and the Middle East and North Africa (MENA) region.
At the seminar, DIFC and Luxembourg for Finance, the agency responsible for developing the financial sector in the Grand Duchy, 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.
The MoU and the seminar are particularly significant given the regional and global roles of the two financial centres, as well as the strong and growing relationship between the UAE and Luxembourg in a range of areas, such as trade and investment. 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.
H.E. Ahmed Humaid Al Tayer, Governor of the Dubai International Financial Centre said: “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 also to the UAE and wider region. Luxembourg is a natural partner for DIFC, with each centre’s strengths complementing those of the other, and opening many possibilities for cooperation among our regulators, as well as among the many firms located in our two jurisdictions.”
Abdulla Mohammed Al Awar, CEO of the DIFC Authority said: “Apart from being prominent global financial centres, DIFC and Luxembourg share many similarities. Like Luxembourg, DIFC offers a high degree of political and social stability and a reliable legal and fiscal framework. Just 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.”
During the seminar, entitled “Luxembourg, a Global Financial Services Centre”, members of the Luxembourg delegation, which also included H.E. Mr Luc Frieden, Minister of Finance of the Grand Duchy of Luxembourg, highlighted the range of products and services offered from the European centre and identified potential areas for collaboration with the Middle East, which included wealth management and collective investments.
“International investors, including sovereign wealth funds from the MENA region, rely on Luxembourg’s 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.”
Some of the MoU’s key areas of focus include promoting the exchange of information on banking, financial services and securities legislation and regulation; sharing trends in financial services and products, and promoting events taking place in the two jurisdictions. Other areas include welcoming delegations from each jurisdiction, cooperating in financial services training and facilitating collaboration among universities located in the two jurisdictions.