Top officials of Frankfurt financial finance Center visit Riyadh

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RIYADH — A high-ranking delegation from the financial center of Frankfurt visited Riyadh over the weekend to inform financial actors about the consequences of Brexit on the European Financial Landscape and how it will affect financial actors in Saudi Arabia. The delegation encompassed among others the Bundesbank and Frankfurt Main Finance. The discussions also served to help the Kingdom of Saudi Arabia to prepare for its very important role in its upcoming G20-presidency role.

German Ambassador hosted the delegation at his residence for an exchange with financial actors from Saudi Arabia.

In his opening remarks, the "ambassador said: �Frankfurt is one if not the main financial centre on the European continent". Regarding the relocation of banks from London he pointed out "most institutes that took that decision favoured Frankfurt� and highlighted that Germany is the biggest economy in Europe, its AAA rating which is of great relevance for financial services and the investor friendly environment in Germany.

The delegation was led by Hubertus V�th, Managing Director of Frankfurt Main Finance. He explained: �The core issue at stake is the loss of so-called passporting rights. This means that a financial product which is licensed in one EU member state can be offered in all other EU member states as well. These rights are used today by about 5500 financial service providers based in London. About half of their business with the EU is based on passporting. We expect that about 700 to 800 billion Euros of assets will be moved to Germany. A third of this amount has already been transferred to Frankfurt.�

So far, almost 60 applications to open or expand financial operations in Frankfurt have reached the German federal financial regulator BaFin - it makes Frankfurt the new leading EU-financial Centre, Post-Brexit. Among others a majority of major US, Japanese and Swiss banks have chosen Frankfurt as their new EU-Financial Hub. — SG


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