Dubai may have already had its moment in the sun
Dubai may have had its day, for now. Last year, big hitting investment bankers were flocking to the emirate in anticipation of astronomical growth in the GCC region. Now, however, the perception is that it has fulfilled its short-term potential.
In the latest incarnation of the Global Financial Centres Index (GFCI) - which ranks 75 cities with a significant financial services industry based on their competitiveness - GCC countries have largely remained static. Dubai is 21st, Qatar 43rd and Bahrain 44th.
More ominously, though, Dubai has consistently been ranked as one of top five cities most likely to become more significant in the future. Now, it no longer has that accolade.
"Last year, Dubai was attracting a lot of interest from big named investment bankers and new entrants to the region, particularly as the situation looked more precarious in western markets," says Mark Yeandle, lead author of the report at Z/Yen which conducts the research for the Corporation of London. "But a good number of people have gone there and left again, as the economy has taken a real tumble."
Both Middle Eastern and Asian cities were tipped to grow last year, but while Asian cities have continued to leap up the rankings, centres in the GCC have largely stagnated.
But Dubai continues to attract new financial services firms, and it still ranks 5th as a centre where new offices are likely to be opened.
Saudi has also featured for the first time in this GFCI, with Riyadh entering in 68th position. Yeandle says this he expects it to rise significantly in future assessments.
