HSBC Bank Middle East Limited today announced it has been granted a license from the Dubai Financial Services Authority (DFSA) to provide institutional financial services from the Dubai International Financial Centre (DIFC).
These activities include a significant proportion of the Bank’s Corporate, Investment Banking and Markets activities, along with a major portion of HSBC’s Private Bank, coupled with representation from the Bank’s Islamic Financial Service vehicle, HSBC Amanah, and some insurance-related activities.
Niall Booker, Deputy Chairman and Chief Executive Officer of HSBC Bank Middle East Limited, said: “Following the announcement made by our Group Chairman, Mr. Stephen Green, last year about the Bank’s strong desire to establish a significant presence in the DIFC, I am pleased to confirm that our request for authorisation has been approved by the DFSA, and that we will relocate a number of staff into the DIFC during 2006. With such a move we expect to further expand our contribution towards developing the region’s financial markets and to continue strengthening the banking and finance services sector.”
His Excellency, Dr. Omar Bin Sulaiman, Governor of the DIFC, added: “HSBC has deep roots in the Middle East and the substantial number of staff located in the DIFC is testament to the Bank’s commitment to the region. HSBC’s global network and expertise is a welcome addition to the growing list of leading financial institutions at the DIFC”.
Antoine Cahuzac, CEO of Global Banking MENA said: “Our position as a strategic financial adviser to many GCC countries over past decades has enabled a close understanding of the individual markets and enduring relationships to be formed with clients across the region. Evidencing client continued trust in HSBC, the Bank recently received the prestigious Euromoney 2006 Awards of Excellence for Best Investment Bank in the Middle East and Best Investment Bank in Saudi Arabia. These and other recent awards confirm HSBC’s leading position as a top provider of Corporate, Investment Banking and Markets financial services in the fast-growing Middle East market.”
1. HSBC Bank Middle East Limited
HSBC is the largest and most widely represented international bank in the Middle East. HSBC Bank Middle East Limited has 33 branches throughout the United Arab Emirates, Oman, Bahrain, Qatar, Kuwait, Jordan, Lebanon, and the Palestinian Autonomous Area, including an offshore banking unit in Bahrain. This extensive regional coverage is strengthened by another member of the HSBC Group HSBC Bank Egypt SAE, and by its associated companies, The Saudi British Bank and British Arab Commercial Bank Limited. In addition to its Middle Eastern network, the Bank has a representative office in Tehran, Iran.
2. HSBC Corporate, Investment Banking and Markets
HSBC Corporate, Investment Banking and Markets (CIBM) provides tailored financial products and services to major government, corporate and institutional clients. Within client-focused business lines, Corporate and Institutional Banking, Global Investment Banking, Global Markets and Global Transaction Banking, CIBM offers a full range of capabilities, including foreign exchange, fixed income, derivatives, risk advisory, investment banking financing, investment banking advisory, payments and cash management, trade services, and securities services. Further details can be found at www.hsbcnet.com.
3. HSBC Amanah
HSBC Amanah is the Global Islamic financial services division of the HSBC Group. It is responsible for the development of Islamic financial products for distribution to customers of the HSBC Group. Its aim is to ensure that HSBC is the leading provider of value added Islamic financial products and services. Headquartered in London with regional representations in Bangladesh, Brunei, Indonesia, Malaysia, Saudi Arabia, Singapore, UAE, and USA, HSBC Amanah is uniquely positioned to understand, structure and deliver financial solutions that are compatible with the requirements of Shariah (Islamic law).
The HSBC Shariah Supervisory Committee comprises:
Justice (Retd.) Muhammad Taqi Usmani
Shaykh Nizam Yaquby
Dr. Mohamed Ali Elgari
Dr. Muhammad Imran Ashraf Usmani
4. HSBC Private Bank
International private banking services are provided through offices in Dubai, Abu Dhabi and Beirut. Working with dedicated HSBC Private Bank offices around the world, the team in the Middle East provides advice and guidance on deposits, securities portfolios, asset protection (through the formation of trusts and offshore companies) and other investments such as the purchase of international real estate. Confidentiality and relationship management are cornerstones of this highly personalised service.
5. HSBC Holdings plc
HSBC Bank Middle East Limited has been a principal member of the HSBC Group since 1959. Serving over 125 million customers worldwide, the HSBC Group has some 9,500 offices in 76 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. With assets of US$1,738 billion at 30 June 2006, HSBC is one of the world’s largest banking and financial services organisations. HSBC is marketed worldwide as ‘the world’s local bank’.
6. Dubai International Financial Centre
The Dubai International Financial Centre (DIFC) is an onshore hub for global finance. It bridges the time gap between the financial centres of Hong Kong and London and services a region with the largest untapped emerging market for financial services.
In just over one year, more than a hundred top international institutions have joined the DIFC as members. They operate in an open environment complemented with world-class regulations and standards. The DIFC offers its member institutions incentives such as 100 per cent foreign ownership, zero tax on income and profits and no restrictions on foreign exchange. In addition their business benefits from modern infrastructure, operational support and business continuity facilities of uncompromisingly high standards.
The DIFC is made up of the following core bodies:
1. The DIFC Authority (DIFCA) - Responsible for the Companies and Security Registries and attracting financial as well as non-financial institutions to set up in the DIFC. The DIFC Authority is also responsible for developing the financial services industry. (www.difc.ae)
2. The Dubai Financial Services Authority (DFSA) - An independent, unitary regulatory authority, responsible for the regulation of all DIFC operations. Its principle-based primary legislation is modelled on that used in London and New York and its regulatory regime operates to standards that meet or exceed those in major financial centres. (www.dfsa.ae)
3. The DIFC Courts - An independent court system set up to uphold the provisions of DIFC laws and regulations, the courts provide comprehensive legal redress in civil and commercial matters within the DIFC. The DIFC Courts system is especially designed to deal with all of sophisticated transactions that will be conducted within DIFC. The DIFC Court laws, based on the common law, not only sets out the jurisdiction of the court but also provides for a dispute resolution services, including arbitration and mediation, thus allowing for the independent administration of justice in the DIFC. ( www.difccourts.ae )
DIFC Investments- The creation of DIFC Investments will result in the allocation to it of all non public administration activities previously carried out by DIFC Authority. This will include amongst other things all commercial and other activities such as the operation and management of any current and future subsidiaries, the development of the centre’s investment strategy and relevant policies and any other strategic investments or alliances which will further the goals and objectives of the Dubai International Financial Centre and contribute to the fulfillment of the Centre’s vision. Some of the companies and organizations that DIFC Investments owns include:
1.The Dubai International Financial Exchange (DIFX) The DIFX is the region’s first international financial exchange for equities, bonds, Islamic products, funds, index products and (subject to regulatory approval) derivatives. The target areas of the DIFX for seeking issuers include the Middle East and North Africa, as well as South Africa, Turkey and the Indian sub-continent. The regulator of the DIFX is the Dubai Financial Services Authority. The DIFX is located in the Dubai International Financial Centre (DIFC) and its owner is the DIFC Authority. (www.difx.ae)
2. Hawkamah- the first Institute for Corporate Governance in the region is being set up by a group of international institutions, including the Dubai International Financial Centre (DIFC), Organisation for Economic Cooperation and Development (OECD), UAE Ministry of Finance and Industry, Centre for International Private Enterprise (CIPE), International Finance Corporation (IFC), the Union of Arab Banks (UAB), Dubai School of Government (DSG), Young Arab Leaders (YAL), and the Institute of Management Development (IMD). (www.hawkamah.org)
