Will Dubai become the new capital of Forex?
Author: Michael Levine
Dubai has long been aiming to become the next big financial centre of the world, and it looks like the efforts are starting to pay off.
During the past few expos in Cyprus that the TFB team attended in 2023, one thing was clear – the shift from Cyprus to Dubai is in full swing. With local regulations becoming more rigid, fewer new brokerages launching, and large brokers acquiring smaller market players, there is no doubt that the Cyprus market has stagnated for the last couple of years while the Dubai market has grown exponentially. Cyprus is losing its primary role in the Forex industry.
While things are slowing down in Cyprus, Dubai is actively promoting itself as the perfect spot for Forex brokers. Its stable political situation, strategically advantageous position between East and West, well-thought-out regulation system, mild taxation, and modern infrastructure make it the ideal candidate for the next financial hub.
The Dubai government is making it clear to everybody: they are interested in accommodating financial institutions and individual investors, and they’re looking for a long-term partnership.
But will Dubai succeed in becoming the next global Forex centre? After all, those things are not solely up to the goals and policies of a country. Plus, there are several global financial centres besides Cyprus out there.
Nobody knows what the future holds, but Dubai is in an excellent position to become the next Forex hub. The emirate has created a business-friendly environment and maintained a stable economic situation, helping investors build trust. Also, very importantly, the government recognises the role of technological advancement in creating a favourable environment for the financial sector. It is constantly working towards increasing transparency and maintaining a clear structure on that front. While that may result in stricter regulations, it is ultimately a good thing for the industry.
Going to any Forex expo in Dubai is a busy experience. There is always a lot of buzz from exhibitors and participants and lots of conversations about launching Dubai offices and moving operations to the region. It seems like everyone is excited about the emirate, and looks forward to launching many projects there.
Time will tell, but with the current trajectory, there is no reason why Dubai won’t eventually become a global Forex hub.
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