More than 1.2 trillion USD in assets will need to be relocated after Brexit. Frankfurt is poised to gain more than 800 billion USD. Frankfurt Main Finance, representing the Financial Centre Frankfurt, with the support of the Central Bank of Egypt, informed the Financial Industry in Cairo on the most recent developments on 25 March 2019, at the Diplomatic Club Cairo.
The event brought legal and regulatory experts together the financial industry to discuss Frankfurt’s increasing role as a financial hub in the wake of the United Kingdom’s impending exit from the European Union, not just for continental Europe, but also the larger MENA region.
“As the financial centre of Europe’s leading economy, Germany, and the home of the European Central Bank, Frankfurt is in the pole position to benefit post Brexit. 48 Financial institutions, mainly from the US, Europe and Asia have decided to relocate all or part of their European banking business to Frankfurt,” explains Hubertus Väth, Managing Director of Frankfurt Main Finance e.V.
“We now see a second wave coming from the MENA region.” Yusef Ahmed, Founder and Managing Director of FIC Frankfurt International, notes. “As companies and banks finalize their Brexit contingency plans, Germany is committed to supporting Frankfurt’s key position in the new landscape of Europe’s financial industry.”
From a legal perspective, regulatory issues faced by banks moving to Frankfurt have been discussed in the context of new political conditions. Brexit also hosts opportunities for Frankfurt to establish itself as an M&A centre as well as a transaction-financing hub,” says Dr. Nicolas Bremer, Partner at the international law firm Alexander & Partner.
Dr. Rüdiger Litten, Partner at the international law firm Fieldfisher, who supported the Kuwait Finance House in establishing their fully licensed bank in Frankfurt, adds that “in the past months, we have experienced an increasing number of banks and financial institutions from the MENA-region seeking our advice on opening shop in Frankfurt.”