Tuesday 14 December 2010

Discount Dubai: banking hub cuts rents | beyondbrics: News and views on emerging markets | FT.com

Dubai’s financial district has top-class regulation, and restaurants with waitresses imported from Las Vegas. It’s sometimes hard to tell which is more alluring for bankers.

However, Dubai International Financial Centre knows that neither factor will guarantee its place at the cutting edge. So it has slashed rents by up to two-thirds from their 2008 peak to make the centre more competitive. That addresses a situation where - even after the emirate’s recession and debt debacle - the DIFC’s rents remained the second highest in Europe, Middle East and Africa, trailing only London’s West End.

A hush descended on the DIFC during the economic slowdown, amid a dearth of merger activity and somnolent markets. As the crisis deepened, dozens of licensees folded and deluxe retail outlets shut. The boarded-up shop fronts have prompted jokes that DIFC stands for Dubai International Foreclosure Centre.

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