Stern School of Business Unveils First Financial Center Competitiveness Index at Abu Dhabi Summit
The Stern School of Business at NYU Abu Dhabi has made a significant contribution to the understanding of global financial dynamics with the launch of the first-ever Financial Center Competitiveness Index (FCCI) during the Global Markets Summit held in conjunction with Abu Dhabi Finance Week. This innovative index ranks international financial centers based on their current stature and future potential, providing key insights for policymakers, business leaders, and investors alike.
In the current landscape, New York, London, and Singapore top the index, affirming their status as preeminent global financial hubs. Impressively, Abu Dhabi and Dubai have also secured positions in the top 15, placing at 12th and 14th respectively. Additionally, Riyadh and Doha made it into the top 30, underscoring the growing influence of the Gulf Cooperation Council (GCC) in the international financial sector. This trend marks a noteworthy shift, as these cities have rapidly ascended to prominence in a domain traditionally dominated by established financial centers.
The Financial Center Competitiveness Index, developed by the Institute for Global Financial Competitiveness, utilizes sophisticated data science methods to bridge the gap between conventional ranking systems and strategic analysis. Unlike traditional indices that merely rank cities, the FCCI provides a comprehensive framework that allows for a deeper understanding of how financial centers compete and evolve. This index is instrumental in guiding emerging financial locations in their growth strategies and assisting decision-makers in navigating the complexities of an ever-evolving global economy.
As stated by Rob Salomon, Dean of Stern at NYUAD, "International financial centers are critical indicators of how the global economy transitions. With the FCCI and the Institute for Global Financial Competitiveness, we aim to go beyond mere rankings and provide a research-based perspective on the evolution and emergence of financial centers. The remarkable performance of cities in the Gulf region showcases how swiftly new centers can grow when governance, regulations, talent, and innovation align."
The FCCI employs a two-pillar framework that examines both the present and the future of financial centers. The Footprint pillar assesses the current scope of activities, including institutional strength and local resources, while the Dynamics pillar evaluates growth prospects with an emphasis on technology and innovation. Together, these pillars reveal where financial centers currently stand and how prepared they are for future challenges.
Bruno Lanvin, President of the Descartes Institute and Senior Advisor at the Institute for Global Financial Competitiveness, emphasizes the necessity for financial centers to adopt a long-term perspective amid changing growth drivers and geopolitical risks. The FCCI is designed to be a tool that assists cities in understanding their role in a polycentric financial system. By fostering informed decision-making on issues such as investment locations and necessary trust-building measures, the FCCI aims to enhance overall competitiveness.
Furthermore, the index underscores the increasing importance of technology and infrastructure, noting that as AI-driven financial activities rise, financial hubs must invest in digital infrastructure, cybersecurity, and sustainable energy to support new forms of financial intermediation. Anisa Shyti, Clinical Associate Professor of Accounting at Stern at NYUAD, remarks, "The FCCI is crafted for practical application; it offers an interactive platform that enables policymakers and investors to test their assumptions against various scenarios, thus equipping stakeholders with insights essential for decision-making in an unpredictable landscape."
The significance of the FCCI extends beyond just its rankings; it reflects broader regional trends, highlighting the GCC's ongoing evolution as a key player in the global financial arena. With strengthened regulatory frameworks and targeted investments in innovation, regional cities are emerging as serious contenders in the world of finance, reinforcing the necessity for resources like the FCCI to illuminate developmental trajectories and competitive dynamics.
Developed with support from the Abu Dhabi Department of Economic Development and Ray Dalio Philanthropies, the FCCI's full report is now available for those interested in exploring the detailed findings and implications for the future of global finance.
In the current landscape, New York, London, and Singapore top the index, affirming their status as preeminent global financial hubs. Impressively, Abu Dhabi and Dubai have also secured positions in the top 15, placing at 12th and 14th respectively. Additionally, Riyadh and Doha made it into the top 30, underscoring the growing influence of the Gulf Cooperation Council (GCC) in the international financial sector. This trend marks a noteworthy shift, as these cities have rapidly ascended to prominence in a domain traditionally dominated by established financial centers.
The Financial Center Competitiveness Index, developed by the Institute for Global Financial Competitiveness, utilizes sophisticated data science methods to bridge the gap between conventional ranking systems and strategic analysis. Unlike traditional indices that merely rank cities, the FCCI provides a comprehensive framework that allows for a deeper understanding of how financial centers compete and evolve. This index is instrumental in guiding emerging financial locations in their growth strategies and assisting decision-makers in navigating the complexities of an ever-evolving global economy.
As stated by Rob Salomon, Dean of Stern at NYUAD, "International financial centers are critical indicators of how the global economy transitions. With the FCCI and the Institute for Global Financial Competitiveness, we aim to go beyond mere rankings and provide a research-based perspective on the evolution and emergence of financial centers. The remarkable performance of cities in the Gulf region showcases how swiftly new centers can grow when governance, regulations, talent, and innovation align."
The FCCI employs a two-pillar framework that examines both the present and the future of financial centers. The Footprint pillar assesses the current scope of activities, including institutional strength and local resources, while the Dynamics pillar evaluates growth prospects with an emphasis on technology and innovation. Together, these pillars reveal where financial centers currently stand and how prepared they are for future challenges.
Bruno Lanvin, President of the Descartes Institute and Senior Advisor at the Institute for Global Financial Competitiveness, emphasizes the necessity for financial centers to adopt a long-term perspective amid changing growth drivers and geopolitical risks. The FCCI is designed to be a tool that assists cities in understanding their role in a polycentric financial system. By fostering informed decision-making on issues such as investment locations and necessary trust-building measures, the FCCI aims to enhance overall competitiveness.
Furthermore, the index underscores the increasing importance of technology and infrastructure, noting that as AI-driven financial activities rise, financial hubs must invest in digital infrastructure, cybersecurity, and sustainable energy to support new forms of financial intermediation. Anisa Shyti, Clinical Associate Professor of Accounting at Stern at NYUAD, remarks, "The FCCI is crafted for practical application; it offers an interactive platform that enables policymakers and investors to test their assumptions against various scenarios, thus equipping stakeholders with insights essential for decision-making in an unpredictable landscape."
The significance of the FCCI extends beyond just its rankings; it reflects broader regional trends, highlighting the GCC's ongoing evolution as a key player in the global financial arena. With strengthened regulatory frameworks and targeted investments in innovation, regional cities are emerging as serious contenders in the world of finance, reinforcing the necessity for resources like the FCCI to illuminate developmental trajectories and competitive dynamics.
Developed with support from the Abu Dhabi Department of Economic Development and Ray Dalio Philanthropies, the FCCI's full report is now available for those interested in exploring the detailed findings and implications for the future of global finance.
Topics Financial Services & Investing）
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