A new report published today outlines how Ireland can benefit from the major expansion of Asia as an EU financial services market location.
The report outlines the major drivers of the global expansion of Asian financial services and the value proposition of Ireland as an EU/global hub for Asian financial institutions. The report, published by Asia Matters - Ireland's only Think Tank on Asia - in association with PwC, said that in a post-Brexit world Asian financial institutions are concerned about risk and uncertainty.
However, the report states that Ireland provides a safe harbour location for such institutions.
The report focuses on four key areas where Ireland can play to its strengths in its growth focus in Asia: Aircraft leasing; Asset financing; Investment management; ship finance.
The report details the economic advantages Ireland enjoys thanks to its taxation policies, regulatory operations, global talent pool, diversified FDI and overall business environment. Ireland has 80% of the world's top 25 financial services companies.
Alan Dukes, Asia Matters Chairman, said that Asia today accounts for 40% of global GDP and 60% of global population. By 2020, it is forecast to account for 50% of global GDP and 75% of global population
PwC has already projected that the world economy could more than double in size by 2050. Emerging markets in Asia have in the recent past been one of the primary drivers for global economic growth and are expected to continue to act as a growth engine for the global economy.
Given that the UK is unlikely to be able to retain access to EU passporting arrangements once it leaves the EU, this would prove to be a key factor driving foreign financial institutions to look at moving their European operations to another EU member state. The chairman added that Ireland's connectivity with Asia is being deepened by the establishment in Ireland of units of a number of Chinese financial service institutions and by the forthcoming opening of a direct Hong Kong to Dublin air link by Cathay Pacific.
Launching the report at The European Financial Forum today, the Minister for International Financial Services, Michael D'Arcy TD, said the government, state agencies and private sector representative bodies remain focused on creating the conditions for a symbiotic and mutually beneficial economic relationship between Ireland and Asia.
Feargal O'Rourke, Managing Partner, PwC, said, "Ireland's policy framework promotes an open and competitive business environment and the certainty of the corporate tax rate provides confidence to investors. A young, talented and adaptable domestic workforce, supported by the increasing international talent currently being attracted to Ireland, ensures a continued supply of high-quality labour for companies. As a gateway to Europe, Ireland provides a perfect location for Asian companies to invest."