China International Capital Corporation (CICC) has received a licence to operate in the Dubai International Financial Centre (DIFC), adding to the presence of Chinese firms in the United Arab Emirates as cross-border activities continue to expand.
The investment bank will join China’s five largest banks that have set up bases in the special economic zone. This expands the range of financial services available to support cross-border activities, including trade and sustainable finance, according to Ian Johnston, CEO of the Dubai Financial Services Authority (DFSA).
“To have CICC, one of the major investment banks, which can facilitate deals and arrangements, [is] a big step forward,” Johnston said on the sidelines of the Asian Financial Forum on Tuesday in Hong Kong.
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CICC Hong Kong Securities received the licence last week. It allows the company to arrange and advise on credit, financial products and investment deals, according to the DFSA public register.
CICC declined to comment. Xu Jia, the deputy head of its investment banking department, said in a media briefing on Tuesday that the bank’s overseas units would aim to “meet the needs of Chinese enterprises for cross-border mergers, acquisitions, and greenfield investments”.
“We also recognise the demand for independent equity financing and listings for these Chinese firms’ incubated enterprises abroad,” Xu said.
Johnston said that Chinese banks are gaining clients in areas such as infrastructure and project finance, building on the existing dealings related to trade.
Total assets under management by Chinese banks in the DIFC surged more than 33 per cent over the past three years to US$65.3 billion at the end of 2024, according to data from DFSA, which is an independent regulator for business conducted in or from the DIFC.
A facility of China International Capital Corporation (CICC) is pictured in Beijing on October 28, 2020. Photo: VCG via Getty Images alt=A facility of China International Capital Corporation (CICC) is pictured in Beijing on October 28, 2020. Photo: VCG via Getty Images>
The DIFC hosted 16 Chinese firms as of 2024, comprising six representative offices, five commercial banks, two wealth managers, one broker, one adviser and one insurer. The number has doubled since 2021.
Nasdaq Dubai, one of the emirate’s exchanges, has around 22 securities listings from issuers in Hong Kong and mainland China, with a value of US$12.3 billion. China’s Ministry of Finance listed two bonds totalling US$2 billion on Nasdaq Dubai last November, joining other Chinese issuers like the Hong Kong government and the top banks in China.
In recent years, the DFSA has moved to strengthen international cooperation to achieve net-zero targets. It signed an agreement with the Hong Kong Monetary Authority to bolster sustainable finance and held a joint climate-finance conference in September in the city.
The issuance and listing of green bonds is an area of focus under the collaboration, Johnston said. “Both of our governments are committed to net-zero targets over time, and for that transition to happen, it needs to be funded,” he added.
Dual listings of green bonds could be on the horizon, as bourse operator Hong Kong Exchanges and Clearing made the Dubai Financial Market a recognised stock exchange in July, Johnston said.
“There’s a very strong priority on decarbonisation and getting down to net zero,” he said.
“The China-Middle East corridor is a real thing. We at the government, policy and regulatory levels have to take away the blockages and provide opportunities for people to cross-invest.”
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