Why sould we listen to these guys?
Overregulation sees GCC funds fleeing DIFC, QFC
Overregulation in leading GCC financial centres, Dubai International Financial Centre (DIFC) and Qatar Financial Centre (QFC), is driving investment out of the region to less regulated markets, a top official from international law firm, Simmons & Simmons, said yesterday.
http://www.gulf-times.com/site/topics/article.asp?cu_no=2&item_no=276473...
When everyone has seen the effects of regulation in the G-7 countries why shouldnt the gulf countries over regualte their financial markets?
Its better to be safe than sorry.........
aviduser, tq for informative post.
"As for Qatar it looks like many are seeing that the cost of doing business here far outweigh the benefits."
- then that's something the powers that be ought to take into serious consideration and do something about the situation.
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Don't want no drama,
No, no drama, no, no, no, no drama
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Along with the regulation comes a total lack of transparency when it come to many financial matters here.
Investors have no need to set up funds here, money in banks is a liquid asset that can be transferred any where with the press of a few buttons.
They say "over regulated" what they don't say is that in order to set up a fund here QFC and DIFC are seeking to be involved and take a cut. Either by stipulating 51% ownership rules, levying taxation on profits or bizarrely in this case forcing a fund to set up physical office space here in order to be taken under the QIC's wing.
Now these are all things that in the past fund managers might have accepted, but not now.
We have entered into a new financial age, essentially a depression. Fund managers, and all investors in all businesses around the World are going to enter into a long period of retrenchment. Costly offices in Cities such as this will be closed. The costs will outweigh the benefits.
Qatar has managed to paint it's self into a rather awkward corner. It has refused to relax labour laws and failed to establish free zones.
In the past as I say, this wasn't such a bad thing as some business saw the labour laws and rents and other costs as "part of the cost of doing business in the gulf"
Now though times have changed, and these things count against Qatar, Dubai was very proactive in this respect. They set up free zones and encouraged business, Bharain again did the same. Unfortunately for Dubai they over expanded their real estate sector and are now paying the price.
Ironically Bharain could actually come out of this as the best placed country in the Gulf.
As for the Qatar it looks like many are seeing that the cost of doing business here far outweigh the benefits.
Sorry, don't agree that the market here is over-regulated, large local players don't seem to lose as often as others in the market? Are they better investors? Somehow, I doubt it. Anyone who invests in the financial or real estate markets in the GCC who is not a national is running a big risk IMHO. It is only recently that expats could invest in either, and that opportunity can be taken away in a heartbeat with no legal recourse.
Just look at the recent change in the rules for real estate, at first you could get an RP if you purchased, now it's if you meet the health checks every 3 or 5 years can it only be renewed. (I stand to be corrected on this because as I'm not interested, I don't pay that close attention).
I know several people who got caught up in speculative real estate deals in Dubai and now they're stuck with payments on flats/villas/condos that aren't even built yet - and may never be.
"you can't fix stupid"
Agreed. It's not even "over regulate" but rather "conservative regulation". It's prudent to be safe rather than sorry. You may not gain a lot within a short time but in the long run.
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Don't want no drama,
No, no drama, no, no, no, no drama