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MENASA KEY GROWTH AREA

The DIFC estimates 50 per cent of its overall future
growth to come from the MENASA region.

UAE foreign trade seen at $354 billion in 2016

DUBAI, January 17, 2017

The UAE’s foreign trade is projected to reach $354 billion in 2016, according to a new trade finance report published by the Dubai Financial Services Authority (DFSA).

The study highlights key findings of a review of trade finance activities carried out in and from the Dubai International Financial Centre (DIFC), reported Wam, the Emirates official news agency.

The review assesses the quality of systems and controls, in particular measures to mitigate trade-based money laundering risks, at banks and other financial service providers in the DIFC.

The report notes that trade finance has grown in the DIFC over recent years. While the report shows that in general trade finance is conducted satisfactorily, it highlights several improvement opportunities surrounding trade finance risks.

The report also contains a list of recommended best practices that firms engaged in trade finance activities are encouraged to implement. In particular the report notes the importance of guarding against financial crime.

Ian Johnston, chief executive of the DFSA, said: "There is an increased focus globally, on trade-based money laundering risks from international groups such the Financial Action Task Force, and financial service regulators.”

“Our review and the published report are further testament to the DFSA’s commitment to maintaining the highest international standards in the DIFC. Given the importance of trade to this region, regulators need to effectively oversee and supervise trade finance without hindering actual trade. We urge firms to benefit from all international guidance issued in that regard.

"The DFSA continues to work toward enhancing the quality of systems and controls of regulated firms in the DIFC. Where we detect weaknesses or failures, we will rectify them through supervisory or enforcement actions," he added.

The DIFC estimates 50 per cent of its overall future growth to come from its strategic access to the Mena and South Asia (MENASA) region, which possesses a combined GDP of $7.9 trillion, the report said.

The Centre places special focus on improving integration between Asian and Middle Eastern financial institutions to upgrade regional trade and project finance.

The most common goods financed by firms are commodities: crude oil, oil products, gas, soft commodities and automobiles (cars/spare parts).

Other notable items were precious metals and jewellery related products. The type of trade finance activity in the DIFC covers a full range of trade finance products, according to the DFSA report.




Tags: DIFC | DFSA | UAE foreign trade |

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