DIFC Authority Releases Updated Version Of ’Guide To Islamic Finance’

The Dubai International Financial Centre Authority today announced the release of the updated version of its ‘Guide to Islamic Finance in or from the DIFC’.

Apart from incorporating the new landmarks in the evolution of its model Islamic insurance regulatory framework and operating practises, the latest publication also takes into account the changing overall scenario as a result of the ongoing financial crisis that is gripping the world.

At the same time, the publication retains and expands on its original aim of assisting those parties from within the region and outside, who are interested in learning about the rapidly expanding world of Islamic finance.

The publication provides a summary of the underlying concepts in Islamic finance and examines the issues facing the Islamic financial services industry, both in DIFC and beyond; now and in the future.

The Islamic Financial services industry is growing at a phenomenal rate. What emerged as a niche industry has now pervaded almost every major financial market in the world. Markets are seeking to introduce Islamic products under various labels like Islamic Finance, Shariah-compliant Finance, or even Alternative Finance, but whatever title is used, it is without doubt one of the fastest growing financial sectors in the world. Most global banks either have a subsidiary or a division dedicated to Islamic Finance.

Abdulla Al Awar, Chief Executive Officer of DIFC Authority, pointed out that the DIFC had identified Islamic Finance as one of its major pillars even before it became globally popular. “Since then the DIFC has successfully worked towards becoming a hub for Shariah-compliant finance.

“Perhaps now is the opportunity for Islamic Finance to come out from the shadows of conventional finance and provide financial products in line with Shariah to an investor base that is currently unsatisfied and unsure of the conventional financial system,” he said.

There are many factors for this phenomenon. Many conventional forms of banking and insurance have been prohibited or restricted in the Islamic World on the grounds that they contravene the tenets of Islam.

But, in recent years, there has been a dramatic growth in Islamic or Shariah-compliant financial products, reflecting a number of trends including changes in Islamic law such as the approval in 1985 by the Grand Counsel of Islamic scholars of the Takaful system as the alternative form of insurance written in compliance with Islamic Shariah and the emergence of an international market in Sukuk (Shariah-compliant) bonds.

Other factors are economic development giving rise to infrastructure and other projects which require Shariah-compliant forms of financing, rising incomes among the Arab population resulting in the need for Islamic consumer financial products such as insurance, mortgages, pension plans and investment funds, and changing demographics resulting in the growing need for pensions and other retirement savings products.

The publication points out that the total size of the Islamic Banking industry is currently estimated to be between US $800 billion to $1trillion, and is estimated to have a global potential of $4 trillion. It is growing at 15-20 per cent per annum and within the next 8-10 years Islamic banking industry is projected to capture half of the savings of the world’s 1.6 billion Muslims.

Currently, market penetration amounts to an estimated 20 per cent of the Arab population. This figure is expected to rise dramatically and it is expected that within the next decade, 50 to 60 per cent of the total savings of the world’s 1.2 billion Muslims will be in the form of Shariah compliant products.

More interestingly, as conventional banking faces troubled times, Islamic banking, which is asset-backed as opposed to debt-based, offers a viable alternative and is becoming increasingly popular in global financial capitals such as London, which ranks second after Dubai in terms of the number of listed sukuks.

The publication says assets under management in Islamic Funds are estimated to be between $50-70 billion and the total value of sukuks issued is valued at more than $88 billion, of which $13 billion is listed on NADAQ Dubai.

Hari Bhambra, Senior Partner, Praesidium, said: “Islamic Financial Institutions based in the DIFC are clearly ready to respond to this opportunity and this publication provides information on the manner in which Islamic Finance can be offered in or from the DIFC.

“Praesidium has developed this publication with the DIFC Authority to assist those parties interested in learning about Islamic finance generally and gaining an understanding of the operating environment of the DIFC,” he said.

Bhambra said the publication provides a summary of the underlying concepts in Islamic finance and examines the issues facing the Islamic financial services industry, both in DIFC and beyond; now and in the future.

It also sets out the regulatory environment developed by the Dubai Financial Services Authority (DFSA) for Islamic finance and the scope for the application of such requirements to new product offerings, such as Shariah-compliant REITs.

Some Islamic Finance Milestones @ The DIFC up to 2008

December 2005: DIFC Authority establishes the Islamic Finance Advisory Council to promote the development of Islamic Finance. The seven-member council comprises seasoned executives and decision-makers who provide expertise and insights into the Islamic Finance industry and marketplace.

July 2006: Islamic International Rating Agency (IIRA), the region’s leading Islamic rating agency, establishes presence at DIFC.

August 2006: MoU between DFSA and Securities Commission Malaysia which also announced the launch of the initiative to facilitate cross-border flows of Islamic Finance between DIFC and Malaysia.

October 2006: NASDAQ Dubai becomes the world’s largest exchange for Sukuk, with a total value of US$ 4.11 billion.

March 2007: The Mutual Recognition Model was launched between the DFSA and SC Malaysia to facilitate the cross border flows of Islamic Finance between DIFC and Malaysia.
DFSA enters into a MoU with Bank Negara Malaysia to further develop Islamic Financial Markets.
Cass Business School begins delivering the world’s first new Executive MBA from the DIFC specializing in Islamic Finance and Energy

April 2007: DFSA receives award for Innovations in Islamic Finance, recognizing its contributions to transparency and innovation in Islamic Finance.

June 2007: DIFCA, through its investment arm, DIFC Investments, issues a US$ 1.25 billion Sukuk, the largest-rated and the largest Straight Sukuk to be launched out of the region.

The total value of Sukuk listed on NASDAQ Dubai topped US$ 10.43 billion as of 18 June 2007, the highest in any exchange worldwide.

March 2008: DFSA signs MoU with Bank Negara Malaysia in order to facilitate Islamic finance transactions between DIFC and Malaysia.

June 2008: H.E. Dr Omar Bin Sulaiman, Governor of DIFC, receives international recognition for “Outstanding Contribution to the Development of Islamic Capital Markets” at the London Sukuk Summit Awards 2008.

BDO International Establishes Corporate Finance Office At The Dubai International Financial Centre

BDO International, the 5th largest global accountancy network, today announced the opening of a new corporate finance office in the Dubai International Financial Centre (DIFC).

The new office – BDO Corporate Finance (Middle East) LLP – will act as a hub for corporate finance and restructuring advisory work in the Middle East.

It will focus on building relationships with and working alongside regional family offices, institutional investors and businesses as well as helping multinational businesses who want to break into the Middle East.

Dr. Omar Bin Sulaiman, Governor of the DIFC, welcomed BDO International to the DIFC. "The world’s fifth most important accountancy consultancy joins a growing list of top global firms at the DIFC, the world’s fastest growing international financial hub. We have 20 of the world’s top 25 banks and 6 of the world’s 10 largest asset managers”.

"The Gulf has always been regarded as a cash-rich region and, I am sure, that with expanding opportunities as the centre of gravity of world commerce shifts East, coupled with growing sophistication and increasing depth of our markets, BDO International will have a highly successful operation in the region," added the Governor of the DIFC.

BDO Corporate Finance has received Category 4 Authorised Firm status from the Dubai Financial Services Authority (DFSA). Jon Breach, Corporate Finance Partner, who has relocated from the London office of BDO, heads up the office and has brought with him a team of corporate finance specialists from the UK.

Jon Breach, Lead Partner of BDO Corporate Finance (Middle East) LLP, said: “Over the last few years, we have witnessed the rising influence of Middle Eastern investors in the global corporate finance arena. By having a team of corporate finance and restructuring experts based in the region we are bringing additional specialist advisory services to the strong relationships established by the local BDO member firms. This will result in our clients being able to access a broader range of services, which is why we have opened the dedicated regional office. This market will continue to grow in importance as an international source of capital and the opportunity for us is very exciting. I look forward to working alongside the local BDO member firms in this dynamic region.”

Jawad Habib Jawad, Head of Middle East Region at BDO, said: “The Middle East is strategically important to BDO at an international level. Our strong member firms in the region will benefit from specialist corporate finance and restructuring advisory knowledge, skills and expertise on the ground. Our experience shows that Middle East investors prefer to work with local experts and this is what we will provide through this new venture. Jon brings with him a wealth of experience and he and his team will be able to draw on our regional and international BDO member firms for support where necessary.”

Dubai International Financial Centre Authority Releases Comprehensive ’Guide To Re-Insurance And Captives In The DIFC’

The Dubai International Financial Centre Authority (DIFCA) today released a comprehensive publication on how to conduct Re-Insurance and captive business in or from the DIFC.

Titled, ‘Guide to Re-Insurance and Captives in the DIFC”, the publication is aimed at supporting the insurance industry inside and outside the DIFC.

The publication provides an overview of the core issues of interest to (re)insurers, brokers, underwriting agencies, businesses considering establishing or managing a captive insurer, insurance service providers and back-office support functions that are looking at establishing a presence in the DIFC to carry out business across the region.

Abdulla Al Awar, Chief Executive Officer of the DIFC Authority, said: “The potential for the development of the insurance industry across the DIFC region is huge. The historically low insurance penetration levels seen from within the region are likely to grow exponentially over the next few years to those experienced in more developed markets. The DIFC continues to receive a great deal of attention from the global insurance industry who recognize the promose shown by the centre to become a regional hub.

“Keeping the rising growth and the vast potential in mind, the Guide to Reinsurance and Captives in the DIFC has been prepared to not only assist those who are interested in undertaking insurance business in or from the DIFC, but it will also be of interest to those who provide support functions and services to insurance businesses across the region,” Al Awar added.

Wayne Jones, Partner and Head of Clyde & Co’s (re)insurance team in the Middle East, pointed out that: “The publication arrives at a time when many international insurers are looking to establish or consolidate a regional footprint to concentrate on the opportunities presented in the Middle East.

“Our team has been involved with helping insurance interests accomplish this by setting up in the DIFC since 2004. It has been a pleasure working with DIFCA to produce what we hope will be a useful resource for the insurance industry, and will continue to stimulate interest in the DIFC and the region generally,” Jones added.

The DIFC Authority has been striving to increase awareness of modern methods of finance and managing risk in the region and part of the efforts are aimed at bringing best-of-breed practices, technologies and expertise to the region’s insurance industry.

Low penetration levels are attributable to a combination of factors, with the main factor being a general lack of insurance awareness with regional firms.

However, with economic development, growing industrialization, rapid growth of international trade, international mergers and acquisitions, improved regulation and increased focus on corporate governance, the region is witnessing a change of attitudes towards corporate risk management, and a growing awareness of the need for innovative ways to finance the future cost of corporate risk.

In view of the recent turbulent finance and insurance markets, volatile premium fluctuations and reduced capacity, regional firms are now looking beyond the traditional insurance markets and assessing alternative opportunities.

For regional firms looking to finance and manage corporate risk, the DIFC’s legislative framework, coupled with its favourable tax environment, offers a convenient platform for the establishment of captive insurance companies. Further, the flexible yet robust onshore regulatory environment of the DFSA in their regulation of protected cell companies helps position the DIFC amongst the most competitive domiciles.

On the other hand, because of the vast potential, global majors are looking at the region, which has a huge programme of infrastructure spending on energy, construction, water, transportation & logistics, trade, tourism, and retail. There is a wave of privatization of state assets, resulting in previously uninsured risks that now require insurance cover. There is also the introduction of compulsory insurance covers and a generally increased insurance awareness.

The DIFC has set out to create a global hub to foster the development of a thriving regional captive insurance industry by attracting global insurers, reinsurers, brokers, insurance managers, actuaries, as well as educational and training providers by offering a unique gateway to regional market opportunities.

DIFC Field Study Reveals UAE Family Businesses Are More Perceptive Of Business Opportunities, More Positive On Management Practices Than Their US Counterparts

A comprehensive survey of Family Businesses in the UAE has revealed that CEOs and Family Members have a higher perception of business opportunities in their sector of operations than their counterparts in the United States (US).

Entitled ‘Differing Perceptions and Challenges Facing UAE Family Businesses: Implications for Practice’, The study released by the Dubai International Financial Centre (DIFC) Research Unit, was done with the support of the Walker Center for Global Entrepreneurship at Thunderbird School of Global Management. It is the first study of its kind to compare the views and perceptions of parent-CEOs and family members within UAE-based family businesses. The study also derives its importance from being the first to compare UAE-based family businesses with US-based family businesses using a standardized and tested research tool and through direct face-to-face interviews.

The study results indicate a higher level of satisfaction with planning practices among UAE family business CEOs compared to US CEOs. In lights of its findings, the DIFC study stresses the importance, and highly recommends the writing of a family constitution that governs the family-business relations to avoid future conflicts and clearly define responsibilities and expectations among the various members of the business.

To further strengthen the foundations for future sustainability, the DIFC study also encourages family-owned enterprises to engage in a re-strategizing exercise that ensures the balancing of the growth and diversification drive witnessed by many organizations at its early stages with the need to introduce sound governance models and organizational systems. The study highlights the key significance of involving all stakeholders in this exercise.

H.E. Dr. Omar Bin Sulaiman, Governor of the Dubai International Financial Centre, stated: “The Arabian Gulf is dominated by family businesses. Most of the family business in the UAE and the Gulf are still young and in transition phases.

“The family-run business faces many challenges such as globalization, the growing number of family members in each generation, growth of the company, succession plans and business continuity. It is well known that nearly 95 per cent of family businesses do not survive the third generation of ownership primarily due to lack of planning in the succession.”

“This comprehensive scientific study comes as part of the DIFC’s efforts to provide sound and fact-based business intelligence that would help regional family owned businesses to cope with the pressures of change and succession-planning as well as assist the international business community to understand the needs and aspirations of UAE-based family businesses,” Dr. Omar said.

“The DIFC has and will continue to always leverage its expertise and partnerships in providing innovative and useful business intelligence and business tools that will assist regional and international businesses and the financial services community to have better visibility and thus support smooth decision-making process,” added the DIFC Governor.

Dr. Zeinab Karake Shalhoub, Director of Research, DIFC Investments, explained that the research showed that in the UAE, as well as in the US, chief executive officers (CEOs) generally perceived the practices, cultures and succession processes more favorably than other family members. "Important relationships between family and family firm cultures were found in both the US and the UAE samples. Many of the findings in the UAE mirror those found in the US”.

She clarified that: "UAE family businesses also exhibit stronger family influence in the business and greater challenges posed by generational succession; and the need for adaptation in a changing competitive environment.”

"The study identifies a number of areas for improvements and provides six major recommendations to UAE CEOs and family members including writing a family constitution; developing clear standards and processes for both managerial and ownership succession and adopting a holistic strategic planning approach," she said.

"It also recommends the appointment of at least two independent outsiders to the board of directors, as well as the employment of key non-family managers to ensure the professionalization of the business and the neutralization of the decision making process. In addition, assuring frequent family meetings and a more formal family council to educate and communicate with family members and family shareholders was also stressed to be a critical requirement for business continuity," Dr. Zeinab added.

The DIFC Study saw active participation by a number of family businesses in the UAE including CEOs and other family members in business.

Responses from the CEOs and other family members were compared to responses from CEOs and family members in other firms. The UAE responses were also compared with those of family businesses in the US in an effort to test the universality of managing family businesses across different cultures.

Dr. Zeinab pointed out that the study is a unique study that looks at challenges posed by generational succession in UAE family businesses and the need for adaptation in a changing competitive environment.

For a copy of the study, please contact Dr. Zeinab Karake Shalhoub at zeinab.karake@difc.ae.

Unique Creative Project Launched By Five Emirati Young Women To “Unleash” UAE’s Creativity And Record It For Posterity

Approximately 400 “Unleash” journals were distributed in the UAE during the month of May, officially launching the Unleash Movement, which is sponsored by the Dubai Culture and Arts Authority (Dubai Culture).

“Unleash”, a unique nation-wide creative initiative, is founded by five Zayed University students, Alia Rashid Al Shamsi, Alia Lootah, Khulood Al Atiyat, Noora Bin Kalban and Salama Khansaheb. Created as a graduation project, “Unleash” aims to foster and enhance the appreciation for creativity within the UAE society through the creation and distribution of 1,000 blank journals across all Emirates of the UAE. In these journals, participants are invited to artistically express themselves through any means they prefer.

Each journal lists a set of guidelines and instructions to help contributors understand the essence of the “Unleash” movement, explaining how the journals can be used, what it represents and how each individual can contribute to this unique cultural initiative. The participants are asked to use one page of the journal to express themselves through any means they choose and then, pass the journal along to the next person. Upon the completion of any of these journals, the participants are instructed to return them to the founders through the steps mentioned on their website, www.unleashonline.com.

HE Dr. Omar Bin Sulaiman Governor of the DIFC, Managing Director of the Dubai Culture and Arts Authority (Dubai Culture) welcomed the initiative. "The Unleash Movement by the five young Zayed University students is exactly the creative process that we at Dubai Culture aim to encourage and support.There is abundant talent among our youth and this creative and unique endeavor confirms that position.

"Our Chairman, H.H. Sheikh Majid bin Mohammed bin Rashid Al Maktoum encourages initiatives such as this one that the female students have ’unleashed’ country-wide. It will be of historic value as in years to come, social scientists will have a well-documented source of thoughts, expressions, visions, creativity and talent proving the high level of artistic creativity and cultural diversity that our nation today possesses and which we at Dubai Culture, aim to encourage, nurture and support," Dr. Bin Sulaiman added.

The Founder explained that once the journals are all collected in, participations that stand out would then be selected and compiled in a book that will be published and presented to the public.

The journals, which are currently being distributed all over the UAE, are given to students in high schools and universities. They are also placed in art galleries, art centers, and will randomly be passed along among the residents of the UAE. Those who are interested in taking part in this initiative can request that they receive the journal by sending an email through the Unleash website, the Founder said.

They explained that the goal of this initiative is to motivate everyone in the community to take part in a project that would hopefully succeed in documenting the creative reflections of the people of the UAE in an innovative way. Through participating, both nationals and expatriates can express themselves in the pages of the journals, recording their thoughts and feelings to illustrate the true essence of the UAE community.

“This project exemplifies Zayed University education,” said Marilyn Roberts, Dean of the College of Communication and Media Sciences at Zayed University. “It is about leadership, creativity and engagement with the community. We are proud of these five young students and we appreciate Dubai Culture’s support of their initiative,” Roberts added.

Unleash would hopefully correct the stereotypes about the United Arab Emirates by presenting an uncensored and clear image of the country from the people – nationals and expatriates – who reside within it.

This project also aims to inspire people to be creative in all forms. By presenting an empty canvas, participants are encouraged to express themselves through mediums that could range from writing to silk painting and photography.

Without placing any limitations, the founders hope that the creative expressions of the contributors could inspire other people, and be appreciated by the whole society.

Dubai International Financial Centre Gets Full-Service Immigration Office for Convenience of Member Firms

A VIP delegation from the Dubai Naturalization and Residency Administration (DNRA), paid an official visit to the full-service immigration office at the Dubai International Financial Centre (DIFC), which caters to the needs of the growing DIFC community.Marwan Lootah, Chief Corporate Affairs Officer at the DIFC Authority, welcomed the top-level delegation, which was led by Lt. Col. Awad Alowaim, Assitant Director for Management and Finance.

Members of the high-ranking DNRA delegation included Lt. Col. Khalifa Matar Mubarak, Assistant Director for External Centres Sector, as well as Khalid Adullkarim, Director of Finance and Investment; and 1st. Lieutenant Salem Bin Ali Head of Naturalization & Residency – DIFC.

Marwan Lootah, DIFC Authority Chief Corporate Affairs Officer, said: “We have created a lifestyle option at the DIFC, making it a preferred destination to live and work in for the global financial industry.

“Today, the DIFC is ranked the world’s fastest growing international financial hub. We have 20 of the world’s top 25 banks and 6 of the world’s 10 largest asset managers. Attracting top institutions from across the world has been helped in a major way by the ease of doing business from the DIFC. The partnership with the DRNA has brought another added convenience to the DIFC Community,” Lootah added.

LT. Col. Awadh Al Owaim Director of General Dep. Of Human Resourses & Finance at Department of Naturalization & Residency– Dubai (DNRD) said, "This visit comes in line with strengthening the strategic partnership and finding ways for collaboration with DIFC. He stressed the Department’s efforts to expand its corporate and community relations to execute one of the strategic plan goals that the Department pursues and to reinforce the integral and strong role between DNRD and its major strategic partners so they can achieve security system for the community in the Emirate of Dubai.

Lt. Col. Khalifa Matar Mubarak Asst Manager of External Centres Sections praised the efforts of staff in specialised areas at DIFC and pledged to overcome any obstacles facing them. He asserted his endeavour to enhance DNRD work at DIFC through creating a distinguished work environment to raise the performance level and support the sense of professional dedication of staff.This strengthens DNRD role, according to Balqoubaa, and its responsibilities in community through its contribution to the development of its political systems and internal communications and sustainability of the high quality and excellence in achievement.

Dubai’s Economy Is Undergoing A Structural Shift Toward Long Term Sustainability, Says HE Dr Omar Bin Sulaiman

The composition of Dubai’s economy will undergo a structural shift over the next few years toward sustainable long term sectors such as transportation, healthcare, education, tourism and financial services, HE Dr Omar Bin Sulaiman, Governor of the Dubai International Financial Centre (DIFC), told members of the Dubai Chamber of Commerce & Industry on Thursday.“This shift in the relative importance of various sectors of the economy is, in fact, a central component of the Dubai Strategic Plan 2015, but it’s happening more quickly than envisioned by the plan, largely due to the impact of the global crisis,” said Bin Sulaiman during the Dubai Chamber’s quarterly Business Breakfast, its second of 2009. “Additionally, because many of these sectors impact residents’ quality of life, the shift currently underway will further enhance Dubai as a place to live, especially alongside the government’s continued support of culture and the arts,” Bin Sulaiman told the participants. At the same time, high-growth industries such as real estate will continue to be integral to the make-up of Dubai’s economy, he said. The networking event is part of the Dubai Chamber’s active support and promotion of the interests of the emirate’s business community, as well as the Dubai Government’s policy of dialogue and engagement with the private sector. “This event aims at facilitating direct communication between public and private sectors where our members are presented with an opportunity to put forward issues and challenges that they face before the concerned officials.” Stated HE Hamad Buamim, Director General of Dubai Chamber of Commerce & Industry, during his presentation on the latest developments witnessed by Dubai business community. Buamim stated that Dubai’s Economy is witnessing the first signs of recovery and investors are showing more confidence. “According to the latest findings and figures profit rates in the banking sector has only dropped by 4%, while assets increased by 2%. Passenger traffic recorded by Dubai International Airport increased by 6.5% in April, and it is expected that this number reaches 10% in 2009, in a strong indication that Dubai is still a favored business and tourist destination, and it is ranked as the top FDI destination city in the World by the FT report” stated Buamim, while highlighting other equally significant growth rates recorded by the tourism and hospitality industry, electricity and water demand, in addition to Dubai’s recent population growth by 8%.  “Despite the crises Dubai’s current exports are still growing in comparison with the exports of 2007, since 2008 was an exceptional year of growth and 2007 is the norm and we still expect to see more growth” he concluded During his keynote speech HE Dr. Omar Bin Sulaiman added: “We are blessed to be living in an open and flexible market economy that allows us to adjust quickly in the face of rapidly changing global conditions. As a result, we soon will begin to see signs of a mature economy taking shape in Dubai and the UAE.” Despite these shifts, trade will remain a significant contributor to the emirate’s GDP, especially given the substantial investment in Dubai’s transport and logistics infrastructure and the more than 200 destinations served by its seaports and airports. And while acknowledging that this economic shift comes with pain to some companies and employees, he said the issue is more about a shift in the mix of jobs, rather than a decline in employment. “While there has been a loss of jobs in real estate and related sectors for example, positions are opening up in healthcare, education, hospitality, financial services and trade.” Examples of this include Emaar who recently announced the creation of 10,000 jobs in Dubai Mall as well as its hospitality and entertainment divisions, the more than 2,000 new employees that will be hired by Dubai Metro by the time it opens in September, and the thousands of healthcare workers who will be employed by clinics and hospitals opening in Dubai Healthcare City and elsewhere in the emirate. With regard to the financial services sector, Bin Sulaiman said company applications to DIFC’s regulator, the Dubai Financial Services Authority, are running higher in 2009 to date than over the same period in 2008. “This means that the DIFC will continue to be a major driver of growth in the number of high-end professionals working in Dubai, both today and in the future. For example, at the end of 2008, there were more than 14,000 of these professionals working at the DIFC, a number set to grow to 60,000 by the time the DIFC is completely built,” Bin Sulaiman said. Among the many steps the government is taking in its primary role as infrastructure provider and business enabler is support of the skilled workers already here in Dubai, through flexibility regarding visas of those who have lost their jobs. Moreover, the Dubai Government is working on creating a fund to support Dubai-based entrepreneurs who are running small- and medium-sized businesses, an initiative led by the Dubai Department of Economic Development.

World’s largest independent actuarial and consulting firms, Milliman Inc., registers office at the DIFC to serve Middle East, Africa and South Asia

Milliman Inc., one of the world’s leading consulting and actuarial firms, announced that it has registered an office at the Dubai International Financial Centre (DIFC) to serve the Middle East, Africa and South Asia region.The American-based firm offers a broad range of actuarial services. It brings its expertise with the aim to assist regional financial institutions and insurance companies in providing innovative products that simultaneously manage both investment and longevity risk. HE Dr. Omar Bin Sulaiman, Governor of the DIFC, welcomed Milliman Inc to the DIFC and the region. “Milliman joins a long list of leading global institutions that have made the DIFC their home since we opened and we welcome them and offer all support to ensure their success in doing business in the region. “Africa, Middle East, the Gulf and the Subcontinent region is bubbling with energy and vibrancy despite the ongoing global crisis and is poised to come out of it sooner and in better shape. This is evident in the shift of global commerce towards the East. It is a good time to focus on this region and we are sure that with the global expertise that Milliman possesses, it will do excellently and add value to the region,” Dr. Omar added. Debo Ajayi, Managing Consultant and Director of Milliman in Dubai said: “Milliman’s wide range of talents and global experience are ideally suited to meeting client needs in the Middle East, Africa and South Asia. We will respond to the growing demand for customised solutions in the insurance and financial services areas.” “Financial institutions have for years been under stress because of the twin threats of volatile capital markets and uncertain longevity trends, and the recent global financial crisis has compounded the situation. Many firms are now taking a new approach to risk management by offering retirement savings products with built-in guarantees. The global expertise that Milliman has developed in guaranteed products and the sophisticated risk management systems and processes needed to manage them will become increasingly relevant as organisations in the Middle East look to enhance their retirement savings products,” he further said. Milliman hosted a 1-day seminar on investment guarantees on 26 May in Dubai. The event, titled ‘Investment Guarantees: Managing Risk in Challenging Markets’, looked at the current state of the industry, examined some of the lessons learned in the wake of the recent financial crisis, and discussed future trends. The seminar compared and contrasted financial risk management practices in North America, Asia, and Europe, and discussed the potential to apply these techniques in the Middle East. It also included an in-depth discussion of the global financial situation, an overview of promising risk management strategies, and the presentation of a case study highlighting the use of a capital guarantee, hedging, and a best-practices process to maximise portfolio performance. Speakers included Ken Mungan and Ghalid Bagus of Milliman’s Financial Risk Management practice from the Chicago office. For more information, please call +971 4 3289828 Or email: dubai@milliman.com

KKR Granted License To Operate From The Dubai International Financial Centre

Kohlberg Kravis Roberts & Co. L.P. (“KKR”), a leading global alternative asset manager, today announced that KKR MENA Limited has been granted a license by the Dubai Financial Services Authority to operate from the Dubai International Financial Centre (DIFC).

Abdulla Al Awar, Managing Director of the DIFC Authority, pointed out that: “The MENA region, and especially the Arabian Gulf, has been relatively less impacted by the ongoing global financial crisis than North America, Europe or Asia. The Gulf has been particularly well-cushioned by the windfall revenues from the high oil prices witnessed during most of 2008. This surplus income has been earmarked for continued investments in infrastructure projects to upgrade existing ones and build new capacities.

“Concurrently, our region is also witnessing a deepening of the financial markets and private equity is not only abundant here, but is fairly active. We are pleased to note that a globally respected firm such as KKR has chosen Dubai as their base to operate across the MENA region. We wish them the very best and offer all support for their continued success as we welcome them to the DIFC,” Al Awar said.

Led by Makram Azar, Managing Director and Head of Middle East and North Africa, KKR MENA is a newly formed subsidiary of KKR, especially created to do business from the DIFC. Its area of operations will cover the entire Middle East and North Africa (MENA) region. KKR MENA Limited will pursue private equity and infrastructure transactions in the MENA region and engage in the distribution of various KKR products.

Mr. Azar said: “We are delighted to officially launch KKR’s office in the DIFC and our operations in the rapidly developing Middle East and North Africa region. There are a wide variety of attractive opportunities in these markets and our professionals here look forward to capitalizing on KKR’s global resources to build an exceptional franchise.”

Saxo Bank Establishes Regional Office In DIFC

COPENHAGEN, May 6/PRNewswire/ — Today, the online trading and investment specialist, Saxo Bank, announced that it will establish a regional office in the Dubai International Financial Centre (DIFC). The new office is designed to further strengthen the bank’s presence in the region and marks the first time that a Danish bank has established its presence in the Gulf Corporation Council region.Copenhagen-based online specialist, Saxo Bank announced today that it has received regulatory approval to operate a regional office in the Dubai International Financial Centre (DIFC) under the supervision of the DFSA.Co-CEO and co-founder Lars Seier Christensen said: "We have been increasingly impressed by the entrepreneurial spirit and the will to succeed in the Middle East. If you can build a ski resort in the middle of the
desert, you can do anything. Dubai remains one of the most important global financial centres and the GCC region will have an important role to play when this current financial crisis is over. Depending on market conditions we
intend to use our new office as the first step towards establishing similar presence in other GCC countries."H.E., Dr. Omar Bin Sulaiman, Governor of the DIFC said: "Saxo Bank is a pioneer in its industry and the first Danish bank to establish a presence here. As a globally recognised financial institution, providing
state-of-the-art online investment trading services, we are delighted to welcome them to DIFC. There is a huge demand for the services they provide investors and the Middle East will benefit from their presence here."Saxo Bank specialises in bringing experience in the world’s financial markets in a highly professional, intuitive and cost effective manner to individual as well as institutional investors through its award winning, online investment trading platform. The bank has established a growing reputation and industry wide recognition for being the leading service provider for online investment trading and wealth management services through one, unique and easy to use facility for FX, CFDs, Stocks, Commodities, Futures, Options, other Derivatives, Fixed Income and Structured Products.Shailendra Robin Patel, CEO for Saxo Bank (Dubai) Limited said: "Even though most of our business is conducted online, Saxo Bank takes great pride in the high level of personal service and support we offer our clients and partners on the ground. Our DIFC office will enable us to bring our products and services closer to our clients and partners in support of our objectives to continue growing our business throughout the region".2008 was another record year in terms of income and profit for Saxo Bank. Operating income ended at EUR 338 million, an increase of 61% year-on-year. Reaching EUR 85 million in 2008, EBITDA grew 43% over 2007 while net profit increased 23% to EUR 45.5 million.Founded in 1992 by co-CEOs Kim Fournais and Lars Seier Christensen, Saxo Bank is renowned for its award-winning online trading platform, SaxoTrader, which is available directly through Saxo Bank or one of the Bank’s White Label partners. Saxo Bank has around 120 White Label Partners and has thousands of clients in over 180 countries.