FNC approval follows an intense debate within the ruling hierarchy of the UAE over the DIFC, which will have its own rules and regulations outside the federal system. This process delayed the formal promulgation of the DIFC law beyond the IMF and World Bank meetings in September.
Now the floodgates are about to lift on the DIFC, easily the most ambitious free zone project in Dubai since the Jebel Ali Free Zone and more significant in terms of international prestige.
For in one huge investment the UAE plans to become a global financial centre for the Middle East. Bahrain, by contrast is a regional hub based on Islamic and not international law.
The announcement of a $400 million international bond for Emirates Airline late last week is a sign of things to come. This bond will be initially listed on the Luxembourg bourse and then moved to the DIFC's Dubai Regional Exchange when it becomes operational.
Standby for a slew of announcements from major banks about their DIFC ambitions; Credit Suisse, Deutsche Bank, and Julius Baer have already declared their hand; but now we can expect to hear from many others.
At the same time the DIFC will start rolling out its own 20 internal laws governing all aspects of operation. By September next year when The Gate, the first building of the massive downtown DIFC Capital complex, is opened the media hype will be particularly intense.
In reality it will still be a few years until the DIFC begins to look and feel like a major world financial centre. Buildings have to be built. Licenses have to be issued. Laws have to be fine tuned. A new regional stock market has to be created.
But for the skeptics who thought it might not happen, this is the moment to throw in the towel. The DIFC is about to roar into life and Bahrain will be the main loser.
Browse
related articles
UAE constitution amended for new Dubai financial free zone
- United Arab Emirates: Saturday, December 20 - 2003 at 09:01
Related content
The Dubai International Financial Centre took a major step forward last week with the approval of necessary constitutional amendments by the UAE's Federal National Council. Now only the final assent from the President is awaited.
Article Options
Peter J. CooperSaturday, December 20 - 2003 at 09:01 UAE local time (GMT+4)
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of AME Info FZ LLC / Emap Limited.
This article was updated on Thu Jun 21 2007.
Disclaimer »
The information comprised in this section is not, nor is it held out to be, a solicitation of any person to take any form of investment decision. The content of the AMEinfo.com Web site does not constitute advice or a recommendation by AME Info FZ LLC / Emap Limited and should not be relied upon in making (or refraining from making) any decision relating to investments or any other matter. You should consult your own independent financial adviser and obtain professional advice before exercising any investment decisions or choices based on information featured in this AMEinfo.com Web site.
AME Info FZ LLC / Emap Limited can not be held liable or responsible in any way for any opinions, suggestions, recommendations or comments made by any of the contributors to the various columns on the AMEinfo.com Web site nor do opinions of contributors necessarily reflect those of AME Info FZ LLC / Emap Limited.
In no event shall AME Info FZ LLC / Emap Limited be liable for any damages whatsoever, including, without limitation, direct, special, indirect, consequential, or incidental damages, or damages for lost profits, loss of revenue, or loss of use, arising out of or related to the AMEinfo.com Web site or the information contained in it, whether such damages arise in contract, negligence, tort, under statute, in equity, at law or otherwise.
