and outside India access to global financial products. However, Mumbai continues
to be India’s financial centre, although with a population of 12.5 million people it still faces problems around overcrowding, congestion and poverty.
MIDDLE EAST: DUBAI LEADS The UAE has a strong track record of investment in tax-free zones, and easy set-up processes for companies and investors in order to attract outside capital. The Dubai International Financial Centre is a special economic zone established in 2004 as a financial hub for companies operating throughout the Middle East and has attracted global banks, hedge fund operators and fintech innovators. Last year, the UAE was removed from the Financial Action Task Force (FATF) “grey list” – the global money laundering and terrorist financing watchdog, after making a commitment to upholding global standards of transparency and due diligence. Saudi Arabia’s Vision 2030 aims
to reduce the country’s economy’s reliance on oil production and diversify into other sectors include tourism, electric vehicles, data storage centres and luxury hotels. According to the International Monetary Fund, Saudi Arabia’s banks are currently well-capitalised, profitable and appear resilient to severe macroeconomic shocks.
OFFSHORE FINANCIAL CENTRES: CHANGES IN REGULATION Offshore hubs like Bermuda, the Cayman Islands, Jersey, Luxembourg, and Guernsey continue to attract private equity and hedge funds due to their specialist legal and financial expertise. The Cayman Islands also serves as a critical hub for global fund administration – especially for US-based asset managers. Yet offshore financial centres
are coming under increasing pressure from regulators to be more transparent over tax and ownership. For example, significant global reforms have been introduced over Ultimate Beneficial Ownership rules which are reshaping the landscape for offshore financial centres and requiring countries to be more transparent around the companies and entities which are registered on their shores. The changes aim to combat illicit financial activities by enhancing accountability. The FATF has also begun to
require more transparency on the ownership of entities, which in turn has prompted a global shift towards greater financial openness. In addition, in order to tackle the financing of terrorism, the FATF has issued a “black list” of high risk countries, including Iran and Myanmar, which are not demonstrating a commitment to identifying money laundering and terrorist financing.
KEY TAKEAWAYS – THE GLOBAL FINANCIAL LANDSCAPE
• London remains a global finance hub but faces rising competition
from Singapore, New York, and Dubai.
• Hong Kong, Tokyo and Seoul are all aiming to stimulate economic
growth by investing in their financial sectors
• New financial hubs in India, China and Malaysia are offering a range
of services to global and local clients
• Trade talks and tariffs are still unknown factors which
governments and companies are trying to factor into their strategy in 2025
• Fintech and data storage are key areas of investment
• A stable political environment, favourable tax incentives, flexible
working policies and good quality of life are all factors which attract investors and senior executives to different jurisdictions
• Offshore centres are becoming more transparent in their register
of companies and entities in order to comply with international regulatory requirements
“ SINGAPORE, HONG KONG AND SHANGHAI, WHICH ARE AMONG THE LEADING INTERNATIONAL FINANCIAL CENTRES IN ASIA, HAVE BEEN FOCUSING ON FINTECH AS A KEY AREA FOR SEVERAL YEARS.”
KPMG INTERNATIONAL FINANCIAL REVIEW 2024/25
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THINK GLOBAL PEOPLE FINANCIAL SERVICE S INDUSTRY
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