JP Morgan has secured UAE’s Financial Services Regulatory Authority (FSRA) approval to upgrade its existing license to a category-one license to start taking deposits and providing payment processing services in the Abu Dhabi Global Market (ADGM)
JP Morgan to expand corporate banking business in UAE. (Credit: Precious Madubuike on Unsplash)
JP Morgan is set to strengthen its presence in the United Arab Emirates (UAE) through the expansion of its payments and corporate banking businesses in Abu Dhabi.
The bank’s local subsidiary, JP Morgan Middle East, has secured UAE’s Financial Services Regulatory Authority (FSRA) approval to upgrade its existing license to a category-one license.
With the regulatory approval in place, the US-based lender will start taking deposits and providing payment processing services to clients in the Abu Dhabi Global Market (ADGM).
ADGM is a global financial centre and free zone located on Al Maryah Island in Abu Dhabi.
JP Morgan’s CEO Jamie Dimon made the announcement at the Abu Dhabi Finance Week, addressing the conference virtually from New York.
Jamie Dimon said: “We continue to add to the team this year and submitted an application to upgrade our license for a full category one bank signalling the size of the opportunity here.”
JP Morgan Abu Dhabi senior executive officer Declan Hegarty said: “This is an important step for JP Morgan to develop further its longstanding UAE footprint by upgrading the license of our ADGM registered entity to category one.
“JP Morgan continues to invest in its presence in Abu Dhabi and I am delighted we are increasing our capabilities to support clients to drive business growth.”
The bank’s move is driven by growing competition between UAE and Saudi Arabia to become the major hub for economic activity, as the region gradually moves away from its reliance on oil, reported Reuters.
The company established its legal entity, JP Morgan Middle East, in ADGM in 2021 after serving clients in Abu Dhabi for more than four decades.
JP Morgan has been present in UAE for 10 years through a Representative office, which is regulated by the UAE Central Bank.
The legal entity offers a wide range of products to clients in Abu Dhabi, including corporate banking, securities services, and payments, including treasury services and trade services.
ADGM market development chief Arvind Ramamurthy said: “We are confident that ADGM’s dynamic ecosystem and progressive regulations will enable J.P. Morgan’s vision, supporting them in developing their presence across Abu Dhabi and UAE’s vibrant financial landscape.
“JP Morgan’s growing presence across Abu Dhabi reaffirms ADGM’s appeal to leading international financial institutions and its strategic value to global finance. We look forward to witnessing the positive impact of JP Morgan on Abu Dhabi’s financial ecosystem and beyond.”