DIFC chief gives vote of confidence to Chinese economy

On its visit to China, the DIFC pledged to support the Chinese global growth drive of One Belt, One Road strategy.

Essa Kazim, the Dubai International Financial Centre governor, said that Asian firms are an engine for growth. Lee Hoagland / The National

Essa Kazim, the governor of the Dubai International Financial Centre, has given a vote of confidence to the beleaguered Chinese economy after a week-long visit to the country with a top-level DIFC party.

“China is rich in opportunity and optimism. Seven per cent growth of a US$10 trillion economy is still more than three times the growth experienced by the United States and 5 times that of India in absolute terms,” Mr Kazim said in Beijing.

“DIFC’s 10-year strategy is providing new avenues for Chinese trade and investment flows, aligning with the country’s efforts to diversify and source new consumers for its economic production,” he added.

On its visit, the DIFC pledged to support the Chinese global growth drive of One Belt, One Road (Obor), a trading initiative to encompass East and South Asia, the Middle East and Africa, which is also a key feature of the DIFC’s 10-year strategy.

“The DIFC’s position at the heart of a vast economic region with an estimated combined GDP of $7.9tn will help China catalyse the Obor trade and investment initiative,” Mr Kazim said.

The DIFC met prospective Chinese business partners in Beijing and Shanghai. “Asian firms are an engine for growth, reflecting a broader regional and global economic trend, accounting for 11 per cent of the financial services companies in DIFC but as much as 60 per cent of its incremental business activity,” he said.

Seven Chinese corporations, including its four biggest banks, already do business in the DIFC. Chinese and Indian banks make up the majority of balance sheet assets within DIFC, it was recently announced.

The China visit followed an earlier trip to Mumbai to tap into new opportunities in the Indian financial scene. There were unconfirmed reports in Indian media that an unnamed company from the country’s private insurance sector was on the verge of signing up for DIFC registration.

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