The Framework was signed by Nelson and DFSA Chief Executive, Mr Ian Johnston, to ensure an efficient and effective flow of information between the DFSA and Lloyd’s relating to Lloyd’s business in the Dubai International Financial Centre (DIFC) that will promote and enhance effective supervision.
Nelson said, “This Framework for Cooperation recognises the responsibilities and common interests between Lloyd’s and the DFSA in ensuring Lloyd’s business in the DIFC is appropriately conducted and supervised.”
During the visit to Dubai, Nelson opened the inaugural Lloyd’s Dubai Meet the Market. The event was attended by over 400 delegates from across the Middle East and London, including Lloyd’s syndicates, underwriters and brokers. Lloyd’s Meet the Market events aim to recreate the underwriting room in London where much of the business is still done face to face.
In a keynote speech at the event opening, Nelson said “Lloyd’s is committed to developing our presence in the Dubai and the UAE. It is an important region, with strong economic growth and rates of investment. During a time of global economic uncertainty, the UAE and Dubai in particular has proven itself to be a model of stability, providing confidence to international business and investors. The Lloyd’s Dubai platform gives us a presence in the heart of the Middle East, allowing us to build even stronger relationships and deeper risk insights.”
Nelson also highlighted the potential threats to the region, referencing the Lloyd’s City Risk Index findings for the Middle East’s 16 largest growth cities. It found that collectively they will generate $2.4trillion in GDP in the coming decade, but 15% of this economic growth ($367bn of GDP) could be at risk. Of the 18 threats, the top five for the region include market crash, sovereign default, terrorism, power outage and cyber-attack.
“Ultimately we are in the Middle East to help when the worst happens – to provide the capital required to get businesses, communities, and the economy back on track as quickly as possible.”
Since the opening of the Dubai platform, Lloyd’s has seen steady growth. In 2015 Lloyd’s Dubai generated an estimated $91m in gross written premium, and is forecast to grow by 30% in 2016.