Luxembourg seeks to bolster ties with UAE
The UAE and Luxembourg are modern, dynamic economies that have emerged as major financial centres and hubs for international banking, reports the Khaleej Times.
Dubai — Luxembourg, which is home to assets under management to the tune of more than €3000 billion, seeks to boost collaboration with the UAE in financial services, in particular Dubai Financial Centre, Pierre Gramegna, Minister of Finance of the state said on Tuesday.
Gramegna, part of a financial delegation headed by Prince Guillaume, Crown Prince of Luxembourg, said he wanted to see more banking and other financial institutions from the UAE setting up operations in one of the most vibrant financial hubs of the world where more than 150 banks are in operation.
Gramegna said he was upbeat about the prospects of a recovery for Euro zone on the back of a healthy banking system, a commitment to invest €315 billion in two years under public-private participation in infrastructure, a quantitative easing drive initiated by the European Central Bank, or ECB, and the prospects of increased consumption in the wake of lower oil price.
The minister said the ECB successfully sought to identify and address any remaining vulnerabilities in the EU banking system and to dispel doubts about their health. Last year, the largest European banks were subjected to a comprehensive assessment, made up of the stress test and the asset quality review. This was to help restore trust and investor confidence and allow the banks to get on with their primary business: lending to households and businesses and financing the rest of the economy. The minister argued the results showed the European banking sector was now more resilient and much better capitalised – by over €200 billion in the last year alone. EU banks’ capital ratios are now at 12 per cent, similar to levels in the US. The vast majority have a significant buffer to withstand future shocks, which should help reassure investors. Gramegna said he was delighted to be back in the UAE to further our commitment to strengthening the links between our countries. “Through our regular visits, we can increase the business opportunities for all parties both in conventional finance and Islamic finance, while exchanging experiences about the latest technological developments in the financial services industry.”
In October, 2014, Banque International à Luxembourg opened its first Dubai branch at the DIFC
The bank offers its clients investment management solutions through its booking centres in Luxembourg, Geneva and Singapore. The Dubai branch will be able to manage up to $30 billion in funds, and will particularly aim to accommodate regional investments in Europe’s retail and residential real estate. Gramegna, who inaugurated the branch, said it made real sense to expand into the region and be part of Dubai’s growing influence as a finance hub. “The UAE and Luxembourg are modern, dynamic economies that have emerged as major financial centres and hubs for international banking… this opening is a further testament to the close the bonds between Luxembourg and the UAE.”
The Luxembourg delegation, composed of senior representatives from the Luxembourg financial services sector, took part in a seminar organised on Tuesday by Luxembourg for Finance in cooperation with the Dubai International Finance Centre (DIFC) at The Ritz-Carlton hotel under the theme ‘Dubai and Luxembourg: Partnering to Bring you Global Opportunities’. The seminar, held for leading figures from Dubai’s financial services industry, focused on Luxembourg as a diversified financial centre for private and institutional investors from the Middle East, as well as a leading Islamic finance centre in Europe. An additional focus of the seminar was the FinTech revolution, by which technology is rapidly changing the face of financial services.
Abdul Aziz Al Ghurair, vice-chairman of Dubai International Financial Centre, delivered a speech on the proposition for regional Asset Management.“DIFC is pleased to support today’s event as we see Luxembourg-for-Finance as our long-term partner. This event largely focused on Europe and Luxembourg, but an important aspect of the discussion reflected the reality that even with the slide in oil prices, the Middle East, Africa and South Asia region is still a major source of substantial wealth creation.DIFC seeks to emulate the success of Luxembourg that has successfully established itself as a domicile for funds seeking access to European investors. And we look to develop and enhance asset management based within the GCC and wider Middle East, Africa and South Asia region.”
