The boss of Standard Chartered has warned that Dubai risks damaging its status as a financial center as a result of the trade boycott of Qatar by a Saudi-led bloc, which includes the United Arab Emirates.
Dubai, the largest city in the UAE, emerged as the region’s main banking hub after the establishment in 2004 of a low-tax, independent zone known as Dubai International Financial Centre.
The zone now is home to over 400 financial services firms including 17 of the world’s top 20 banks, according to its website, with incentives including a 50-year guarantee of zero tax on corporate income and profits. But the diplomatic rift with Qatar could make it harder for global banks to base the vast majority of their coverage of the Gulf out of Dubai.
Source Credit: The New York Times
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