Competition is heating up for a share of Brunei’s consumer finance market. Simon Montlake talks to local banks and foreign entrants about their strategies. Newcomers to Brunei might be surprised to find that its small but affluent population of 340,000 is serviced by no fewer than nine domestic and foreign banks. In a country roughly the size of the US state of Delaware, a branch is never too far away, with some staying open until 10pm on weekdays for late-night transactions.
Brunei’s relatively new status as an offshore financial centre has enabled officials to pass quickly the necessary legislation to make it a world-class location. Simon Montlake reports on the country’s attractions for foreign banks. Brunei is among the newest entrants to the competitive field of offshore financial services. In the last four years, it has introduced legislative and regulatory reforms to position the oil-rich sultanate as an attractive tax-free jurisdiction for international banks and other financial companies.
The Brunei Economic Development Board is tasked with overseeing the diversification of the country’s economy and raising its international foreign direct investment profile. Restructured in 2001 as a corporate body, the BEDB is staffed by senior government officials and prominent business leaders and provides a one-stop shop for private investors in Brunei. The Banker spoke recently with its chairman, Pehin Dato Haji Mohammad Haji Daud.
Dubai has learned that breathtaking architecture is one thing but impartial regulation is another when it comes to global financial hubs. Mark Ford reports .The new Dubai International Financial Centre (DIFC) is intended to fulfil the global scale of the Emirate’s ambitions to become the region’s predominant centre for international business and leisure activities.
As Saudi Arabia remains flush from booming oil prices, and opens its banking sector up to competition, the kingdom’s institutions are making aggressive plays for the consumer market and other new business. James Gavin, Jon Marks and Paul Melly report .With international banks set to enter Saudi Arabia’s previously guarded markets, as the long-awaited capital market law comes into effect, the threat of increased competition is looming on the horizon for the country’s banks.
Continued robust oil prices, prospects of renewed business ties with Iraq and higher government spending have bolstered optimism in Kuwait, reflected in massive gains in the local stock market and a real estate boom, writes Randa Azar-Khoury. Kuwait’s economy continued to project indicators of robust growth during the first half of 2004, following a very strong performance the previous year.
Project financing and proactive local banks are adding momentum to Bahrain’s campaign to be the GCC’s financial service hub, writes Jon Marks. With its powerful regulator, the Bahrain Monetary Authority (BMA), licensing some 364 financial institutions – over half of them banks – Bahrain prides itself on being the hub of the Gulf’s financial services industry.
Stephen Timewell reports on how a major new financial centre, a strong regulatory environment and a plethora of projects are set to cement Bahrain’s reputation among its Gulf neighbours.Brimming with confidence after its successful Formula 1 grand prix in early April, Bahrain is ambitious to project its long-established role as the Gulf’s premier financial and banking hub and capitalise on the booming economies in the region.
Abdulla bin Khalid Al-Attiya, governor of the Qatar Central Bank, talks about Qatar’s financial future. Q The Qatar economy is seen to be booming; how do you see its prospects and the years ahead? A The economy has been growing strongly, reaching 8.8% growth in 2003 and a GDP total of Qr70.8bn ($19.5bn). Other factors have been positive, too, with the balance of payments surplus rising 34.2% to Qr10.9bn in 2003 and inflation, although rising, kept at 2.3% last year. Clearly the economy is influenced by developments in the oil and gas sectors, and the growth in gas revenues has and will be significant, with gas revenues expected to be higher than oil revenues by 2010.