Abu Dhabi Free Zone, Luxembourg To Push Financial Services

by Lorys Charalambous, Tax-News.com, Cyprus

15 March 2016

The Abu Dhabi Global Market (ADGM) announced on March 10, 2016, that it has signed a Memorandum of Understanding with Luxembourg on financial services.

Luxembourg for Finance is the financial services promotional agency in Luxembourg, while the ADGM is a relatively new tax-free zone in the United Arab Emirates.

The ADBM said that the MoU will improve bilateral cooperation, with a focus on the exchange of views and expertise in the fields of banking, financial services, and securities regulation. The two bodies will also consider running joint activities and training initiatives for their mutual benefit.

Welcoming the signing of the MoU, Philippe Richard, International Affairs Director of the Financial Services Regulatory Authority, ADGM, said: "Since its establishment, ADGM has developed a good standing relationship with the Luxembourg financial center, its industry, and its regulators. The MoU signed today with Luxembourg for Finance, the agency for the development of the financial center, strengthens the cooperation between the two international financial centers, and will facilitate mutually beneficial developments of the financial services industry in both countries. We look forward to working with LFF and their team to advance the financial developments of our markets through joint initiatives."

The ADGM became fully operational in October 2015. It offers firms a number of benefits, including exemption from taxes guaranteed for 50 years, and relaxed rules on the repatriation of profits. The zone permits 100 percent foreign ownership.

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