UAE professionals believe Dubai’s competitiveness not impacted by Brexit

More than 70 per cent of financial professionals in the UAE believe the United Kingdom’s exit from the European Union will not impact Dubai’s competitiveness as a global financial centre, according to a report by CFA Institute.

In a survey of its members conducted last month, including 1,029 from Europe the Middle East and Africa, the association asked about key issues associated with the vote including UK, EU and NATO integration.

CFA said 71 per cent of UAE respondents did not see any impact from Brexit on Dubai’s competitiveness, while 58 per cent thought Middle East companies would reduce their presence in the UK in the wake of the vote.

Only 10 per cent agreed that companies from the Middle East with significant operations in the UK would seek to expand in the kingdom.

Read: What does Brexit mean for people in the Gulf?

Across the survey, 59 per cent of respondents suggested UK fragmentation was more likely than not, after the majority of people in Scotland voted to stay in the European Union.

More exits from the EU were considered likely by 48 per cent of respondents, compared to 28 per cent who considered them unlikely.

NATO disintegration was considered the last likely outcome.

A third (33 per cent) of respondents expected Brexit uncertainty to last six up to six months, 25 per cent for between six and 12 months and 26 per cent for up to two years.

Half of respondents also said they expected firms from their local market to reduce their presence in the UK, with only 5 per cent saying they expected firms to increase their presence.

Frankfurt (69 per cent) and Dublin (62 per cent) were considered the main financial centres to benefit from Brexit, while 82 per cent of respondents said London would lose out as a consequence.

Read: The economic impact of Brexit on the GCC countries

“In the immediate aftermath of the Brexit referendum vote, we can see considerable variance over how long investment professionals expect market uncertainty to last, but that uncertainty will be with us for a while at least,” said CFA president and CEO Paul Smith.

“In addition, while changes in the relative attractiveness of one financial centre over another will see some lose ground and others gain, those changes can be disruptive for clients and for investment management businesses.”