Dubai to create global financial firms by 2015

By Daliah Merzaban

DUBAI (Reuters) - Dubai wants to create at least two of the world's top 10 financial services institutions by 2015, the governor of the Dubai International Financial Center said on Tuesday.

Omar bin Sulaiman leads the financial services strategy of the Gulf Arab emirate, which created Emirates Airline, the world's eighth-largest global passenger carrier, and Dubai Ports World, the third-largest port operator.

"There will be at least two major financial services players coming out of Dubai by 2015," bin Sulaiman told the Reuters Middle East Investment Summit.

He said the companies could be involved in investment banking, consumer banking, insurance or operate across different financial services fields.

"This could happen by M&A, through joint ventures or starting from scratch," bin Sulaiman said.

"As part of this strategy for Dubai, there is a mandate by 2015 that there will be two major players of the global field. Dubai wants financial services to play a big role in the GDP," he added.

Part of the United Arab Emirates, Dubai opened the DIFC, a dollar-based investment zone, in 2004.

The contribution of financial services to Dubai's GDP will more than quadruple to $15 billion by 2015, from $3.4 billion now, bin Sulaiman told Reuters in February, when Dubai's ruler Sheikh Mohammed bin Rashid al-Maktoum unveiled plans to achieve 11 percent economic growth per year to 2015.

DIFC Investments, the DIFC's investment arm, is a holding company that could be used as "one of the potential vehicles" to creating these mega-financial institutions, he said.

DIFC Investments bought a stake of 3.48 percent in Euronext ENXT.PA last year, and could spend another $2 billion this year on acquisitions in a financial services and financial information company in Western Europe and the Middle East.

Other investment arms of the Dubai government may also be involved, including Istithmar, which bought a stake of around 2.7 percent in Standard Chartered Bank (STAN.L: Quote, Profile, Research, Stock Buzz) last October.

Noor Islamic Bank, which is 50 percent owned by two Dubai government bodies, including Dubai Investment Group, and has authorised capital of $1.09 billion, could also form part of this strategy, he said.

"We want to have global players with the footprint and the fire power," bin Sulaiman said.

The world's biggest oil-exporting region has long been viewed as needing banking sector consolidation.

Dubai-based Emirates Bank International EBIL.DU and National Bank of Dubai NBDD.DU announced plans this month to merge to create the Gulf Arab region's largest bank by assets.  Continued...