DIFX eyes US acquisitions

The Dubai International Financial Exchange is eying attractive assets in the US, precipitated by the ongoing carnage in the sub-prime mortgage market and the depreciation of the US dollar, the Governor of the DIFC said today.

Asked whether the he was interested in pursuing U.S. assets at bargain valuations, His Excellency Dr, Omar Bin Sulaiman answered, "Definitely." "We are looking at the US as a possible acquisition market," Sulaiman stated, adding "and I think others will be looking at these opportunities as well."
 
Emerging markets, particularly those in the Asia, have record levels of disposable foreign currency reserves and access to vast liquidity driven by high oil prices. Sulaiman emphasized the need for greater co-operation between these markets. "The East is the future," Sulaiman told attendees. "We haven't previously taken advantage of relationships in the East, but this is something we should look into now."

The Dubai International Financial Exchange (DIFX) will become one of a handful of financial hubs that will stake their claim on the world stage as the growth in emerging markets catch up to the likes of New York and London.

"The overall exchange business is experiencing huge growth and a part of that maturity and growth is to have different exchanges," said His Excellency, speaking at day 3 of the DIFC Week convention.

The global financial marketplace will likely adopt a "hub" structure, much like that of the corporate world, with regional centers catering to the nuances of local markets and global hubs, the size of New York and London, integrating with the broader capital markets to offer opportunities and tap global liquidity, His Excellency told the audience.

Although heightened political instability and the acquisition of human capital resources remain significant challenges for financial centers in the early stages, Sulaiman sees positive growth as a key to the region's successful future.

"Because of growth in regions like Hong Kong, China, Japan, Singapore and Dubai, these centers will become more significant," he said. "London and New York will always play a big role. I see 4-5 global centers and then regional centers that also play a part."

The Dubai international Financial Centre Week runs from November 17-23 and features presentations from Jeffrey Sachs, Steven Levitt and Larry Summers.

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