Dubai and Singapore Become Next Financial Hubs

Dubai competes with London to be the leading business hub in the world.

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According to a recent study conducted by PricewaterhouseCoopers (PwC), Dubai and Singapore are next in line if London loses its status as the leading business hub in the world. Dubai will benefit after Brexit if big corporations choose to relocate their offices. As per the latest Global Financial Centre Index, London, New York, Singapore and Hong Kong remained the four top global financial centres. Dubai has improved three positions this year and reached the 13th spot in the index. The city is competing with London, along with Singapore, New York, Tokyo, Hong Kong. Dubai has been the leading financial centre in the Middle East and Africa, and it has a slight edge over London because of its excellent infrastructure, better support from the government, higher economic confidence, and strong policy consistency, says Shan Saeed, chief economist at IQI Holdings. Dubai can easily attract investment amounting to USD50 billion to USD100 billion in the future through brand positioning strategy and effective marketing campaign, adds Saeed.

The PwC study indicates that Singapore ranks behind London as the best global city based on social and economic data published before Brexit. ‘The Cities of Opportunity Index’ puts Singapore ahead of Paris and Amsterdam, two major European cities that seek to attract foreign businesses if they decide to shift jobs out of London. Only a few cities can beat Singapore on taxes, as the corporate tax rate of 17 percent compares with over 30 percent in France, 35 percent in the US and an average of 22.8 percent for the 35-member Organisation for Economic Co-operation and Development. PwC also states that an analysis of corporate total tax rate, personal rate, and tax efficiency signifies that Singapore, along with Dubai and Hong Kong, has the lowest rates and highest efficiency altogether.

The report evaluated 30 global cities based on ten economic and social health indicators, comprising ease of doing business, transportation and infrastructure, technology readiness and cost, and demographics and livability.