UAE and China reinforce growing collaboration in financial sectors
- 21 Oct 2023
Sheikh Maktoum Bin Mohammed Bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister, Minister of Finance, and President of the Dubai International Financial Centre (DIFC), on Saturday met with Ren Deqi, Chairman and Executive Director of Bank of Communications (BOCOM), one of China’s leading banks.
The meeting, held at DIFC, further strengthens the robust bilateral relations between the UAE and China and reinforces the growing collaboration between the financial sectors of Dubai and China. BOCOM currently is preparing to establish a new office at DIFC to provide banking and financial services.
Sheikh Maktoum Bin Mohammed said, “By expanding our network of relationships with the world’s leading financial giants, Dubai continues to demonstrate its commitment to evolving its business ecosystem. Consistent with the goal of the Dubai Economic Agenda D33 to make Dubai one of the world’s top four financial hubs over the next decade, we seek to create synergies that will foster value addition, drive fintech innovation, and further enhance the platform provided by the city for the financial industry to succeed, innovate and create value.”
“By fostering public-private partnerships and encouraging major financial companies like BOCOM to operate within DIFC, we aim to not only bolster Dubai’s stature in the global financial landscape but also contribute to the transformation of the worldwide financial services sector, bringing new opportunities and advancements to the industry. This meeting also reflects the deepening ties between the UAE and China, who are actively working together to create a flourishing financial engagement that brings benefits not only to each other but also the global economy,” Sheikh Maktoum added.
Ren Deqi, Chairman and Executive Director of BOCOM, expressed his confidence in Dubai’s offerings as a trusted global financial centre. He highlighted the city’s remarkable infrastructure and business-friendly policies as key factors that boost the prospects of BOCOM’s success in the region.
The meeting was also attended by Mohamed Hadi Al Hussaini, Minister of State for Financial Affairs; Helal Almarri, Director General of Dubai’s Department of Economy and Tourism; Essa Kazim, Governor of DIFC; and Arif Amiri, CEO of DIFC Authority.
Established in 1908, BOCOM ranks among China’s four oldest banks and is one of the country’s largest banks by total assets and market capitalisation. The bank obtained its DIFC Commercial license in August 2023, marking a significant milestone in its commitment to expanding its presence in the region. With a legacy spanning over a century, BOCOM is seeking to enhance its presence in the UAE and the broader Middle East region, leveraging Dubai’s strategic location and world-class business infrastructure.
Headquartered in Shanghai, China, BOCOM provides personal banking, corporate banking and international banking solutions.
The company’s H1 2023 net profit rose 4.51% year on year to reach $6.32 billion. BOCOM has a worldwide employee strength of over 90,000 and operates nearly 250 branches in Mainland China and 23 overseas banking subsidiaries and branches and 69 overseas banking outlets in the Americas, Asia, Australia and Europe.
The Dubai International Financial Centre (DIFC) witnessed exceptional growth in the first half of 2023, with 661 new entities registering during the period in the centre, an impressive double-digit growth of 23% year-on-year.
DIFC’s performance reinforces its growing role in shaping the future of finance and raises Dubai’s status as a leading growth catalyst for financial institutions, FinTech firms and innovation companies in the region.
The total number of companies operating in DIFC rose from 4,031 to 4,949 at the end of June 2023, a year-on-year increase of 23%. The number of firms in DIFC’s FinTech and Innovation sectors grew 35% year-on-year from 599 to 811, consolidating its reputation as a global hub for these sectors.
DIFC is now home to 1,443 financial and innovation-related companies, a 15% year-on-year growth.
The growth in registered companies has led to a remarkable increase in job creation. The total number of employees based in DIFC grew by 3,057 to reach 39,140, up 20% year-on-year. The growth supports the goals of DIFC’s 2030 Strategy, further strengthening Dubai’s position as a pre-eminent global hub for talent.
The first six months of the year saw high demand for commercial space. DIFC leased over 233,000 sq. ft. owned and managed commercial space. Occupancy rates stood at 99%.
Dubai’s growth as a global financial hub received further recognition from prestigious international indices.
The spring 2023 edition of the Global Financial Centres Index categorised the city as one of only ten financial centres in the world that is a global leader with broad and deep capabilities. Dubai is the only financial centre in the Middle East, Africa and South Asia region to be included in this classification.
