Launch of Abu Dhabi’s International Financial Centre
International Financial Centre’s (IFC) have been established in other Middle East countries such as Bahrain and Qatar, as well as the city of Dubai. In order for Abu Dhabi to make its mark and compete in the Gulf’s financial services industry, it must be able to find ways that will help the capital expand its economy. One of the ways to compete would be to launch an IFC.
During the end of 2014, Abu Dhabi planned to set-up its very own international financial centre that would be known as The Abu Dhabi Global Market (ADGM). Initially, ADGM would offer a comprehensive set of financial services that will mainly be focused around three basic elements that firms can provide their clients. These three elements are asset management, private banking and wealth management.
Abu Dhabi has also build a framework before its launch of ADGM that is focused on making sure that its financial free zone is able to offer firms and individuals by offering them all the necessary and expected services that will appeal to them and eventually have businesses from all parts of the world to come and set up their operations in the capital. Some of these services include giving them their own tax incentives, judicial system and management.
The rules and regulation framework for the financial services provided at ADGM was over seen by Richard Teng (chief executive of the regulatory system) and a panel of 16 institutions appointed by Abu Dhabi to help advise them.
The panel consisted of, National Bank or Abu Dhabi, First Gulf Bank, Commercial Bank and Mubadala Development Co and ADS Securities. Representatives were also included to help cater to the ADGM’s rules and regulations, some of these representatives were, Goldman Sachs, JP Morgan, Standard Chartered, Pacific Investment Management, the International Swaps and Derivatives Association (ISDA).
In 2015, ADGM will begin to receive its first licensing application from firms that once they are accepted, it will allow them to open their business in the free zone area. Peninsula Business solutions (PBS) can help by offering its business consultancy services to people that want to set up their business in ADGM. PBS will help facilitate a firm’s application to help them acquire a financial services license in order to let them commence their operations in the financial free zone.