Offshore banking competition hots up.

The Middle EastNbr. 1996, January 1996

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Summary


Middle East

The competition between Middle East countries to become the offshore banking center of the region has intensified. Bahrain and Beirut-based institutions have long dominated the offshore banking sector. However, the reduction of oil revenues in Bahrain and privatization programs have increased the demand for hybrid onshore and offshore banking services. Competing countries include Amman, Cyprus, Dubai and Kuwait.

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Offshore banking competition hots up.

Offshore banking has been crucial to the movement of funds in and around the Middle East. Changing business patterns, and concern over stability in Bahrain and Lebanon, has caused many banks to reconsider where they should base their offshore operations in the Levant. Two potential offshore banking centres are emerging: Dubai and Cyprus.

Financial markets in the Middle East are engaged in a fierce competition to attract international banks to open offshore banking units. At stake are ...

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