tag:blogger.com,1999:blog-19649274.post116608101526569403..comments2024-03-27T17:16:12.789+05:30Comments on The Leap Blog: Dubai: an international financial centre?Ajay Shahhttp://www.blogger.com/profile/03835842741008200034noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-19649274.post-25493531854188125672008-09-28T14:28:00.000+05:302008-09-28T14:28:00.000+05:30I live in Dubai and have seen the developments in ...I live in Dubai and have seen the developments in financial sector very closely for the past 3 years. It IS an impressive story. However its way too premature to compare dubai to singapore of 1990s or London/NewYork of 1980s coz Dubai is still a closed world. HSBC recently obtained licence to deal in local stock market here after struggling with bureaucracy for over 5 years. Another reason is mismatch of demand for and supply of capital. We know capital market activity is very high where there is a huge demand for and huge supply of capital. Dubai has abundant supply of capital but literally no demand. For eg most of the private equity/M&A deals happening here and one-way i.e., a local firm acquiring an international firm. so activity remains subdued. Also with inflation running in double digits and stock markets being immature, there is always a constant flow of capital towards outside UAE. The locals and local business groups are literally secretive and aristocratic in nature. Worse still the actual senior mgmt/directors of many business groups are ignorant of many issues that could affect them in future. Their strength is being closed. They wouldnt let themselves swayed by invasion of foreign capital/ideas or an integration with international capital/financial marketsSIVAhttps://www.blogger.com/profile/10019286699734035252noreply@blogger.com