With a doubling of deposits in 5 years, Gulf investors demonstrate their confidence in Jersey as a stable location for investments
Total deposits from the Gulf countries in Jersey reached £21.2 billion, accounting for 14% of the total deposits in Jersey’s financial sector, representing a growth of 11% in Gulf deposits since the opening of the office by Jersey Finance in Abu Dhabi last year.
Statistics collated and prepared by the island’s financial regulator, the Jersey Financial Services Commission, for the period ending 31st March, 2012, showed that £21.2 billion in deposits were recorded in Jersey from the Gulf, up from £19 billion at the end of 2010.
It reflects a more long standing trend which has seen bank deposits attracted to Jersey from the Gulf region nearly double in the last five years.
Jersey’s attractiveness as an international finance centre for deposits has been further enhanced by the decision of the Abu Dhabi Commercial Bank (ADCB) toward the end of last year to open a branch in Jersey to attract offshore deposits; the latest in a string of high profile Gulf- based financial institutions expanding into Jersey, a sign that Gulf institutions see clear benefits of the stable and secure jurisdiction..
Jersey Finance, the body that represents Jersey’s finance industry, opened its first office in the Gulf region in Abu Dhabi in the first quarter of 2011 and has since used it as a hub for developing closer ties throughout the Middle East. Sean Costello, chief representative, for Jersey Finance in the Gulf region and India, commented:
`Jersey Finance’s profile raising activities have contributed, in part, to the higher figures for the Gulf region, which are a firm indicator that Jersey and its strong banking brands provide the stable, secure and appropriately regulated jurisdiction that international investors are seeking.
There are around 15 banks and trust companies with offices in Jersey who are represented in the Gulf and Emirates NBD, the National Bank of Abu Dhabi and ADCB are among those Gulf based institutions with a presence in Jersey. This two way representation illustrates the growing commercial ties between the locations, a factor which has been further reinforced by the ongoing visits to the Gulf by senior representatives from Jersey’s Government to meet with leading officials and finance practitioners in the region.’
Since Jersey Finance opened its office, there have been agreements signed which also foster greater commercial activity between Jersey and the region. The Jersey Financial Service Commission has signed a Memorandum of Understanding with the Central Bank of the UAE and Jersey’s Government has a Double Taxation Agreement in place with Qatar. Further agreements are anticipated as Jersey’s officials build links with the authorities in the region, demonstrating Jersey’s commitment to developing its relationship with the Gulf.