China International Capital Corporation (CICC) has gotten a license to operate within the Dubai International Financial Centre (DIFC), which should reinforce Dubai’s position further as a global financial hub and key bridge for the Chinese enterprises stretching their toe onto the world.
PC: South China Morning Post
This has now strengthened CICC’s position in the big five banks of China already operating in the DIFC, immensely multiplying the range of financial services available to the region. According to the public register of the Dubai Financial Services Authority (DFSA), the license permits CICC Hong Kong Securities to arrange and advise on credit, financial products, and investment deals.
According to DFSA CEO Ian Johnston, “It is a major step for the DIFC.” Speaking during the Asian Financial Forum held in Hong Kong on Tuesday, Johnston further emphasized the growing significance of Dubai as an engine for cross-border trade and sustainable finance.
Intensifying Dubai’s Economic Ecosystem
CICC’s membership into the DIFC helps to keep Dubai in more of a favorable position for global financial institutions. With a good location and attractive business laws, Dubai is an attractive base that enables international investments and trade activities between China and the Middle East.
“Chinese banks increasingly gain clients in the infrastructure and project finance spheres based on trade-related dealings,” Johnston said. The addition of CICC, one of China’s leading investment banks, is expected to support a great deal of larger deals and arrangements as it integrates Dubai into global financial networks.
Facilitating Chinese Investments Via Dubai
CICC has become part of the efforts in Dubai to support those Chinese enterprises keen on expansion via cross-border mergers and acquisitions and greenfield investments. Xu Jia, deputy head of the Investment Banking Department at CICC, ranked high on the list of possibilities that could allow equity fund-raising by independent means for Chinese enterprises. He pledged support for their foreign listings.
Dubai’s fast-rising financial ecosystem, matched with a geo-strategic location, has positioned this city as an important partner of China. As a partner, the flow of trade and finance, not only over Asia and the Middle East, is seen as helping propel global trade forward. With this, CICC became one of the members of the DIFC, suggesting the growing importance of the city as a central trading and finance center for cross-border financial and business activities.
