Bank of Nova Scotia has received a license to operate in the Dubai International Financial Centre, becoming the first Canadian bank to operate in the global financial hub.

The license allows the bank’s ScotiaMocatta division, which specializes in precious metals trading, financing and physical products, to open its own branch in the district.

“We are very happy to welcome Scotiabank, the first Canadian bank to join the DIFC,” said H.E. Ahmed Humaid Al Tayer, governor of the Dubai International Financial Centre. “As the DIFC begins to play a more prominent role in the global economy, we are keen to expand the industry cluster within the financial district with new companies from across the global financial industry that can bring unique new expertise to the region. Scotiabank’s presence will further enhance the geographical diversity of firms in the DIFC.”

ScotiaMocatta has operated in Dubai since 1998 through an alliance with National Bank of Dubai, providing gold loans and price hedging facilities to Dubai-based bullion traders, jewelers, manufactures and refiners.

“This is a strategic initiative that reflects our confidence not only in the precious metals market, but also in the region,” said Barry Wainstein, vice-chairman and deputy head, global capital markets, and global head, foreign exchange and precious metals.

“As the size and sophistication of the precious metals market in the Middle East continues to grow and evolve, Scotiabank recognizes the importance of establishing a stand-alone presence in the region,” said Pramod Mohan, senior executive officer at the Dubai branch. “Dubai is ideally located in a large wholesale and consumer market and is uniquely positioned to channel gold from the international markets to the ultimate destination.”

Abdulla Mohammed Al Awar, CEO of the Dubai International Financial Centre Authority said the ScotiaMocatta branch would add new value to the pool of expertise in the financial district. He noted that despite the challenges of the past year, Dubai has continued to attract firms from around the world.

“By virtue of its ability to offer a secure, stable and growth oriented platform for international financial institutions, DIFC has continued to attract leading financial institutions over the past year despite the global financial crisis,” he said. “Scotiabank’s decision to base the regional branch of its division ScotiaMocatta in the financial district is testimony to the confidence of global financial industry in DIFC.”

In the past five years, more than 850 firms have registered in the Dubai International Financial Centre. DIFC offers its member institutions incentives such as 100% foreign ownership, zero tax on income and profits and no restrictions on foreign exchange.

IE