Why the DIFC is good for the Middle East

The passing of a new federal law to allow and regulate the creation of financial free zones in the UAE is the last major legal hurdle to the establishment of the DIFC.

In May we can expect a final decree on the DIFC itself, and then - or sometime afterwards - the first licenses will be issued. Several dozen international financial institutions are in this queue.

By September the stage will be set for the launch of the most ambitious and significant free zone project in the Middle East. Quite simply the global capital markets are coming to Dubai.

For this is not a locally regulated, regional market under Sharia law like Bahrain. This is a financial centre regulated according to the best international practice with its own internationally accepted legal framework.

The DIFC is not just good for Dubai - bringing highly-paid financial folk to the city - it is good for the whole Middle East. It will be the companies of the Middle East that benefit most from having an international financial centre in their midst.

It will be easier to raise capital through the new bond and equity markets; financial reserves can be put to better use in these markets; and world-class standards of all types of financial services will be made available.

This is also a great advertisement to the rest of the world. The DIFC says that the Middle East is modernizing, and opening up to global business.

For Arabs this is a shining example of what can be achieved in the Middle East. And the DIFC is bound to be a magnet for the most highly qualified individuals perhaps now living overseas who will be attracted by the huge new job opportunities.

In short, the UAE is taking a bold step in accepting the DIFC. But the rewards for being so bold will be very tangible, and benefit present and future generations in this region.