GCC fund passporting unlocks investment potential: Fitch

Bashar Al Natoor, Managing Director and Global Head of Fitch Ratings, said the adoption of a regulatory framework for fund passporting by the GCC market authorities would integrate the GCC financial markets. The move will also strengthen the markets' position to become a global investment hub.

In a statement, Al Natoor said the procedure would contribute to creating a safe financial environment characterized by fewer regulatory barriers, as it will simplify, unify, and expedite processes. Additionally, the move will open new investment opportunities, and stimulate cross-border investments, thereby increasing liquidity and competition.

This will also enhance the confidence of investors and fund managers, as fund managers will benefit from simplified regulatory processes and an increase in assets under management. Furthermore, the move could allow fund managers to pool assets from investors across different countries, while investors will benefit from access to a broader range of investment products. Regulators will also be able to supervise more efficiently, reducing regulatory duplication, Al Natoor said.

He added that this would facilitate the entry of international fund managers into the GCC countries, encouraging innovation and development of new financial products.

During the 29th meeting of the GCC Committee of Heads of Financial Market Authorities, the GCC financial market authorities adopted on Nov. 20 a regulatory framework for fund passporting, according to data available with Argaam.