Deutsche Bank Confirms DIFC License Application

by Lorys Charalambous, Tax-News.com, Cyprus

10 October 2002

As expected, Deutsche Bank has announced its intention to be licensed by the Dubai International Financial Centre, (DIFC). Deutsche Bank, which ranks among the global leaders in corporate banking and securities, transaction banking, asset management, and private wealth management, is also one of the region's leading investment banks.

The DIFC will issue licenses in January 2003, but Deutsche Bank will begin increasing its senior staffing in Dubai before the end of this year. The bank is already playing a key role in the growth of Dubai as a global finance centre. At the end of September Deutsche Bank launched the $100 million Estithmaar Ventures Fund in a joint venture with The Investment Office of Dubai. It also acted as bookrunner on the recent Emirates Bank International $230 million bond and the Gulf Investment Corporation $300 million bond. Its regional capabilities in corporate and project finance were recognized by winning the award for Best M&A House 2002 in the Middle East by Euromoney and advisor to the Best Project of the Year 2002 by MEED.

Following a meeting with Anis Al Jallaf, Chairman DIFC, Pierre de Weck, Chairman of Deutsche Bank's Middle East and North Africa Board, and a Group Executive Committee member, announced Deutsche Bank's intention to be licensed by DIFC and to move to new premises in the Dubai Financial District once these become available.

Commenting on Deutsche Bank’s decision to set-up in the DIFC, Mr de Weck said:

"We have no doubt that Dubai is an important base for investment banking in the Middle East. The excellent support facilities proposed for the DIFC will make it an exciting place in which to achieve new wealth creation for our clients. Dubai's track record of delivering what it promises in other areas, such as technology and media, gives us confidence that its ambitious plan for international finance is attractive for financial institutions like Deutsche Bank. We are honoured to be amongst the first institutions to be licensed by DIFC and look forward to being part of the success of Dubai as a centre of financial excellence."

Hussain Al Qemzi, COO DIFC added:

"Deutsche Bank's decision is a vote of confidence in our strategy to create a new world financial centre, based on the foundations of firm transparent regulation combined with a highly competitive tax regime and world-class supportive infrastructure. It’s a testament to the financial potential of the region that a leading investment bank like Deutsche Bank has committed to be among DIFC's early landmark institutions."

The DIFC is in the process of establishing a Regulatory Authority, to which institutions wishing to establish a business in the DIFC will be able to submit applications from October 2002. The Regulatory Authority will process the applications and consider the grant of licenses to successful applicants. It is expected that the necessary legislation will be enacted and the Authority will be in a position to issue the first licenses by early 2003.

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