Dubai, Spain Strengthen Economic Ties

by Lorys Charalambous, Tax-News.com, Cyprus

30 September 2010

The Dubai International Financial Centre (DIFC), the financial and business hub serving the Middle East, Africa and South Asia (MEASA) region, has announced the signing of a Memorandum of Understanding (MoU) between the DIFC Authority and the Madrid Centro Financiero (MCF), the body in charge of the promotion of Madrid as an International Financial Centre.

The MoU was signed by Dr. Nasser Saidi, Chief Economist and Head of External Relations at the DIFC Authority, and Antonio Beteta Barreda, President of the MCF, at a seminar in Madrid attended by a senior delegation from Dubai, led by Saidi.

Welcoming the MoU’s signing, Ahmed Humaid Al Tayer, Governor of the Dubai International Financial Centre, said:

“The signing of this MoU will significantly strengthen ties between the MEASA region and Spain. It will see the MCF providing the DIFC Authority access to Spanish institutions that are interested in expanding internationally, and the DIFC Authority providing MCF with similar support."

“The DIFC, as the global financial and business hub of the MEASA region, is responsible for developing not just the centre itself, but the region as a whole. Signing this MoU will create new investment streams for businesses, organizations and investors throughout the region, which can only support and encourage economic growth.”

Nasser Saidi, Chief Economist and Head of External Relations of the DIFC Authority, added:

“The UAE and Spain already have established trade and investment links; the UAE is the largest destination of Spanish exports in the GCC, worth over EUR1bn. The signing of this MoU takes this relationship one step further, by establishing a gateway for institutions and companies from the entire MEASA region into not only Spain but also as far as Latin America. It will raise investors’ awareness of potential opportunities between Spain and the MEASA region, which otherwise would not have been realized. Both sides will endeavour to provide access to their financial and business communities.”

“Another aspect of the MoU is the commitment to develop joint initiatives in the field of Islamic finance, including the development of legal and regulatory frameworks. The DIFC and MCF will be exploring ways to foster Islamic financial activities on a cross-border scale between the MEASA region and Spain, such as trading of sukuk and other Sharia-compliant instruments.”

Antonio Beteta Barreda, President of the Madrid Centro Financiero said:

“Signing this MoU with the DIFC gives us unique access not only to Dubai and the UAE, but also the entire MEASA region. Partnerships such as this are opportunities for both parties to realize avenues for investment and collaboration. We are particularly excited about working closer with the DIFC and the MEASA region as it is one of the fastest growing business and finance hubs in the world today.”

The MoU will also promote and strengthen links between financial markets in the MEASA, Iberian and the Latin American regions. This would include promotion, where possible, of the listing and co-listing of Spanish, European Union and Latin American securities in Dubai, and vice versa.

The DIFC has already signed similar MoUs, including with Paris, Luxembourg, and Hong Kong, and has plans to sign more with emerging markets and China.

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