Abu Dhabi is preparing to establish a financial free zone which will be similar to the one in Dubai. The aim of this financial zone will be to compete with the Dubai International Financial Centre, according to media sources.
Back in February, UAE’s President Sheikh Khalifa bin Zayed al-Nahayan passed a federal decree for the setting up of Abu Dhabi World Financial Market. According to insiders, the new financial free zone will be located on the Al Maryah island. The island was previously known as Sowwah island and it is situated in close proximity to the emirate’s downtown. Also, Al Maryah island covers an area of around 114 hectares and it already houses offices of over 50 companies, both international and local.
Another source shared that the emirate will announce more regulations about the financial zone very soon. In addition, the financial market is said to be just like a financial free zone. It will offer capital and tax repatriation, international regulations and laws, 100% foreign ownership and etc.
United Arab Emirates free financial zones allow foreign firms to exist following lighter regulation. In these areas, investors from other countries can have a 100% ownership on their companies. That is a great plus for them since outside of these zones they need to find a partner from the region.
DIFC (Dubai International Financial Centre) is among UAE’s most prosperous zones. It was created nine years ago and it has its very own commercial and civil laws, financial exchange, as well as courts. DIFC houses one of the largest financial companies and banks in the world. Even though other countries have tried to rival the Dubai International Financial Centre, like the Bahrain Financial Harbour and Qatar Financial Centre, it still continues to be the most successful financial centre in the Gulf region.
Although Abu Dhabi’s economy is mainly backed by its reserves of oil, the emirate is willing to add other sectors to it. In that way, UAE’s capital hopes to become a main player on the global economic map.
However, Reuters reports that some people are skeptical about whether or not Abu Dhabi’s financial centre will manage to dethrone Dubai from its leading position. According to Al Mal Capital’s head of asset management, Tariq Qaqish, in order Abu Dhabi’s free zone to find a place on the market, it should focus only on a particular niche.
