#Abu Dhabi #UAE #Stern School #Financial Index

NYU Abu Dhabi's Groundbreaking Financial Center Competitiveness Index

Recently, the Stern School of Business at NYU Abu Dhabi made a significant leap in financial research by releasing the inaugural Financial Center Competitiveness Index (FCCI) during the Global Markets Summit. This influential report highlights the competitive dynamics of international financial centers and their standing in a complex global economy.

Understanding the FCCI

The FCCI stands out as a novel tool designed to evaluate the competitiveness of financial hubs worldwide. The index ranks New York, London, and Singapore as the top three centers, while showcasing the emerging financial significance of several Gulf Cooperation Council (GCC) cities. Notably, Abu Dhabi secured the 12th position, followed by Dubai at 14th, Riyadh at 26th, and Doha at 29th.

Traditionally, rankings often lack depth in understanding the metrics behind them. The FCCI addresses this crucial gap by utilizing data science to merge data-driven rankings with strategic analysis. This dual approach helps policymakers get a comprehensive view of how financial centers stand against one another, allowing emerging currents to strategically plan for growth and respond to global economic complexities.

The Need for a New Framework

Rob Salomon, the dean at Stern, emphasized that international financial centers are pivotal in observing the shifts in the global economic landscape. The FCCI aims not only to rank centers but to provide a research-based narrative on how cities can foster financial capabilities. The positive outcomes for GCC cities reflect their rapid development, facilitated by synchronized policies, regulations, talent, and innovation.

The index employs a two-pillar framework: the Footprint pillar, which assess current scale and activities—such as institutional strength and local resources—and the Dynamics pillar, which gauges future growth potential focusing on technology and innovation. Together, these pillars offer insights into the current standings and readiness of financial centers for future challenges.

The Research Team Behind FCCI

Key figures in the success of the FCCI are Bruno Lanvin, president of the Descartes Institute and senior advisor at the Institute for Global Financial Competitiveness, alongside Anisa Shyti, a clinical associate professor of accounting at Stern. They underscore the necessity for financial centers to look beyond quarterly metrics towards long-term strategies. The FCCI serves to bridge the gap between data and strategic decision-making, offering essential insights into investment and operational strategies essential for enhancing competitiveness.

The Future of Financial Centers

As financial activity increasingly leans towards artificial intelligence and data-driven processes, the need for robust technological infrastructure, cybersecurity, and sustainable energy solutions becomes paramount. The FCCI is tailored as a hands-on tool that can be actively utilized. By separating its two pillars and offering them through an interactive platform, the index empowers policymakers, financial center managers, and investors to validate their assumptions and make informed decisions that adapt to rapidly changing conditions.

In conclusion, the FCCI heralds a new chapter in financial center evaluation, emphasizing the growing importance of emerging hubs in the GCC and their ability to compete on the global stage. This initiative, supported by Abu Dhabi’s Department of Economic Development and Ray Dalio, promises to reshape how financial centers strategize for growth in a complex economic environment.