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The Emirate of Abu Dhabi is establishing a Financial Free Zone.

The Abu Dhabi government is constructing a financial free zone on Al Maryah Island in the hopes of luring foreign companies away from similar financial centers in Dubai, Qatar, and Bahrain. real estate in qatar

The Abu Dhabi World Financial Market will provide businesses with a range of advantages to open offices in Al Maryah, including the opportunity to operate without a local business partner, send money out of the country quickly, and function under foreign laws.

It will be a direct competitor to the nine-year-old Dubai International Financial Centre, which has successfully established Dubai as a regional financial center and is just a 90-minute drive away. The DIFC developed its own court system, which has received praise for introducing Western-style legal proceedings to disputes within the financial center's jurisdiction, among other benefits.

The 114-hectare Al Maryah development will be designated as the capital's financial hub by the Abu Dhabi World Financial Market. The project, formerly known as Sowwah Island, now houses the Abu Dhabi Stock Exchange's new headquarters.

"I can tell you that all of the local Emirati investors are talking about [the financial zone]," Menacorp CEO Fathi Ben Grira told The National. "Because of its security, all of the major international financial institutions will love to be in Abu Dhabi. There is a widespread belief that they should capitalize on business opportunities."

November 2010 - Sowwah Island - Artists Impression.jpg November 2010 - Sowwah Island - Artists Impression.jpg November 2010 - S

In recent years, the market for foreign financial firms has heated up, with Bahrain and Qatar actively pursuing Middle East operations. While both Abu Dhabi and Dubai have free trade zones, Dubai has been the pioneer in attracting the regional finance and banking industry.

"I don't think [the Abu Dhabi World Financial Market] is really competition for the DIFC," said Kai Schneider, a partner at the Dubai law firm Latham & Watkins. "If Europe serves as a model, a country may have several financial centers, each focusing on a different sector of the financial services industry. Asset management is based in London, while funds are domiciled in Luxembourg and managed in Ireland."

Industry analysts point out that the details of the Abu Dhabi region are still being ironed out.

"For the time being, the first steps have been taken to create a legal and regulatory system," said Nick Clayson, a partner at the Abu Dhabi law firm Norton Rose. "However, it is unclear if any specific rules, legislation, or judicial positions would be similar to those in the DIFC."

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