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Michael Zamorski, who is responsible for overseeing authorized firms within the Dubai International Financial Center (DIFC), delivered a presentation regarding Dubai and the opportunities it could offer. Within the 110-acre DIFC in the UAE, Dubai Financial Services Authority (DFSA) acts as regulator while outside DIFC are other regulators such as the central bank, he said. The first firm in DIFC started operations in September 2004 and today, the center is host to 139 companies.
To Zamorski, the fact that Dubai has its own set of commercial laws based on common law is a most unique attraction for doing business in the financial free zone. No other place in the Middle East and North Africa (MENA) region has common law jurisdiction. He said, “In our case, if firms have a dispute, they can go to the DIFC Judicial Authority which is presided by two judges from Singapore and the UK, and is governed by common law. This gives more legal certainty to the parties involved.”
Dubai also offers other sweeteners such as a zero tax proposition for 50 years of operation, which is renewable. Plus, there is no requirement that foreign firms must have a local partner in order to commence operations (i.e. 100% foreign ownership is allowed).
Zamorski also emphasized that DIFC has a different customer base where it operates on a wholesale basis. “The clients that transact with DIFC firms must have a minimum net worth of US$1 million. Thus, these are sophisticated investors and not retail clients,” he explained.
In relation to Malaysia, Zamorski noted that its products seem to be facing marketing difficulties in the Middle East. DFSA has thus entered into a memorandum of understanding with the Securities Commission to allow the cross-border listing of Malaysian Islamic unit trust products in DIFC with minimal regulation.
Michael Zamorski is managing director, supervision, Dubai Financial Services Authority |
