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HBME's DIFC relocation to help lure $40b assets

Dubai - HBME is now lead-regulated by the Dubai Financial Services Authority

HSBC Bank Middle East Limited (HBME), an indirect wholly-owned subsidiary of HSBC Holdings, announced on Thursday that it has transferred its place of incorporation and head office from Jersey to the Dubai International Financial Centre.
The transfer that is effective from June 30 will result in attracting assets valued at more than $40 billion on the balance sheet to DIFC.
Following the relocation that was initiated last year, HBME is now lead-regulated by the Dubai Financial Services Authority.
"HBME remains locally regulated in each of the countries in which it operates by the country's Central Bank and its other regulators. The re-location has no material impact on HBME's business in the Mena region," the bank said in a statement.
David Eldon, chairman of HSBC Bank Middle East Limited, said the bank has been operating in Mena under a very effective regulatory regime administered by the Jersey Financial Services Commission for 12 years.
"As we look to the future, aligning our business and regulatory oversight geographically makes strong strategic sense. The DIFC and its independent regulator, the DFSA, combine to offer a world-class financial services centre. HSBC has operated certain businesses within the DIFC since 2006, so we know the jurisdiction and regulator well, and we look forward to developing our broader relationship with them," said Eldon.
Essa Kazim, Governor of the DIFC, said the relocation of HSBC's regional management office to DIFC reinforces the attractiveness as well competitiveness of the UAE economy to international players in the banking and financial services sector.
"Furthermore, the transfer will attract assets valued at more than $40 billion on the balance sheet to DIFC," said Kazim.
HBME operations at DIFC will be regulated by our independent regulator DFSA for the entire Middle East region, further strengthening the credibility of our regulatory regime and benefit our clients and stakeholders. I am confident that through its presence at DIFC, HBME will play an important role in fostering closer ties among the financial communities in the Mena region," he said.
Over the last ten years, DIFC has developed a diverse business cluster representing leading institutions from the developed markets of the West and enterprises from the rapidly emerging economies of the East.
- issacjohn@khaleejtimes.com