By Staff writer
More than half of investment professionals expect Middle East firms to reduce UK presence, says CFA Institute survey
Almost three in four investment professionals are confident that Dubai will not suffer as a result of Britain’s exit from the European Union, according to survey.
The CFA Institute, an association of investment professionals, said 71 percent of its members believed Brexit would not impact the emirate’s place as a global financial centre.
And 58 percent expected the Middle East firms to reduce its presence in the UK in wake of Brexit, according to the survey.
Its 2,043 respondents across the EMEA region to gauge the likely potential outcomes of a British exit from the EU, following the referendum in June.
The survey found that 10 percent believed Middle East companies with significant operations in the UK would seek to expand in the kingdom.
Paul Smith, president and chief executive of CFA Institute, said: “In the immediate aftermath of the Brexit referendum vote, we can see considerable variance over how long investment professionals expect market uncertainty to last, but that uncertainty will be with us for a while at least.
“In addition, while changes in the relative attractiveness of one financial centre over another will see some lose ground and others gain, those changes can be disruptive for clients and for investment management businesses.”
UK fragmentation was rated as likely by 59 percent, while more exits from the EU came next with more than 48 percent, while just 26 percent thought it was unlikely. NATO disintegration was regarded as being the least likely outcome.
A third expected uncertainty following the referendum vote to last for up to six months, while 25 percent believed it would last for six to 12 months and 26 percent believed it would persist for up to two years.
Half of respondents expected firms from their local markets to reduce their presence in the UK, while just 5 percent said this would increase.
Frankfurt and Dublin were believed most likely to emerge as “winners” from Brexit, according to 69 percent and 62 percent of respondents respectively. Most expect little change in the status of financial centres outside the EU.
About 82 percent of respondents expect London to lose out as a consequence of Brexit.
Smith said: “As the consequences of Brexit continue to unfold and evolve, the role of our organisation is to help our members and CFA exam candidates understand what these changes mean at a global, regional and local market level, prepare for them, and contribute to an investment management industry which protects clients' interests and puts investors first."