Jersey Strengthens Banking Ties With UAE
Thursday, December 01, 2011

Jersey's relationship with the Gulf region has been strengthened by a new Memorandum of Understanding with United Arab Emirates regulators, and with the announcement that Abu Dhabi Commercial Bank (ADCB) will establish banking operations in Jersey.

ADCB has been granted a banking licence by the Jersey Financial Services Commission (JFSC) and it will operate in Jersey through a managed bank arrangement with Allied Irish Bank (Jersey). ADCB is the third largest bank in the UAE and second largest in Abu Dhabi by assets. It is a full service commercial bank which is 58% owned by the Abu Dhabi government through the Abu Dhabi Investment Council.

Services to be offered by the Bank in Jersey will include basic deposit-taking products, current accounts and term deposits to high net worth individuals and mass affluent clients of the Bank, although there is an intention to extend the range of products at a later date.

In its announcement, ADCB noted that “the added stability and security offered by a well established offshore financial centre like Jersey [will offer] our customers peace of mind that their savings are held in a secure and highly regulated centre which is ideal for inheritance and estate planning.”

The announcement from ADCB comes in the same week that the Central Bank of the UAE has signed a Memorandum of Understanding (MoU) with the Jersey Financial Services Commission in Abu Dhabi. The MOU puts in place a formal mechanism to enable the two territories' regulatory authorities to co-operate on supervisory matters and exchange of information.

Alan Maclean, Minister for Economic Development, commented: “These [decisions] highlight the value of seeking to develop closer ties to the Gulf states, and the strategic decision of opening a Jersey Finance office in Abu Dhabi which helped to demonstrate Jersey’s commitment to the region. Furthermore, the decision by a significant banking group from the Gulf region to set up its offshore capabilities in Jersey is a telling endorsement of Jersey’s strengths as a jurisdiction.”

Geoff Cook, chief executive, Jersey Finance Limited, described the developments as adding positively to the momentum of Jersey’s developing enhanced links with the Gulf region and added that “The formal presence in the region is helping to foster stronger ties with both officials and finance professionals, and is increasing business flows to Jersey from the Gulf.”

“The decision by ADCB to opt for Jersey as the location to establish its offshore banking offering reflects well on Jersey’s reputation in the Gulf region and will add to the potential for increasing banking business in the future.”

“The signing of the MoU is also a major milestone in our relations with the UAE and is the culmination of many years of collective efforts by Jersey government officials, Jersey Finance and the JFSC,” Cook concluded.