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- UASC selects DIFC as domicile following merger with Hapag-Lloyd
- Global shipping business United Arab Shipping Company (UASC) utilises a range of innovative Intermediate Special Purpose Vehicles (ISPVs) and Special Purpose Companies (SPCs) in DIFC
Dubai, UAE – Dubai International Financial Centre (DIFC), the leading financial hub in the Middle East, Africa and South Asia (MEASA) region, welcomes Hapag-Lloyd to the Centre following the successful completion of its multi-billion merger with United Arab Shipping Company Limited (UASC), a DIFC company. The transaction is one of the largest ever mergers involving a DIFC company or any company based in the Gulf region.
With 230 vessels and a combined turnover of approximately USD 12 billion, the combined entity will be the fifth-largest liner shipping company in the world. UASC was established in 1976 by six shareholding states as a supranational legal entity formed pursuant to a state treaty. To make the merger possible, UASC was first re-domiciled to the DIFC. UASC has also utilised a number of innovative SPC and ISPV structures that were made available in the Centre.
Arif Amiri, Chief Executive Officer of DIFC Authority, said: “We are pleased to welcome one of the most established and respected global shipping businesses to DIFC’s business community, particularly at such an exciting time for the company as it announces the completion of its merger with Hapag-Lloyd. The move underlines how DIFC is quickly developing as a domicile of choice thanks to its experience in supporting companies with innovative structured finance transactions.
“DIFC offers a geographically attractive platform, underpinned by an internationally benchmarked regulatory and legal system, enabling businesses and investors to tap into key emerging markets across the MEASA region and thereby supporting the achievement of their respective business objectives.”
Jorn Hinge, who led UASC as Chief Executive Officer until the closing, said: “Choosing DIFC as the jurisdiction for UASC in preparation for the merger is testament to our confidence in the Centre as an important enabler as the combined entity moves forward in its regional, and global, growth strategy. The DIFC is an attractive choice in a number of ways, offering a range of benefits, providing access to 100% foreign ownership, zero tax, DIFC law and DIFC infrastructure.”
DIFC continues to play a pivotal role in meeting the growing financial services needs of the region and serves as the regional financial hub of choice for ambitious, international businesses.
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About Dubai International Financial Centre
The Dubai International Financial Centre (DIFC) is the financial hub for the Middle East, Africa and South Asia, providing a world-class platform connecting the region’s markets with the economies of Europe, Asia and the Americas. It also facilitates the growth in South-South trade and investment. An onshore, international financial centre, DIFC provides a stable, mature and secure base for financial institutions to develop their wholesale businesses.
The Centre offers all the elements found in the world’s most successful financial industry ecosystems, including an independent regulator, an independent judicial system with a common-law framework, a global financial exchange, inspiring architecture, powerful, enabling support services and a vibrant business community. The infrastructure within the district features ultra-modern office space, retail outlets, cafes and restaurants, art galleries, residential apartments, public green areas and hotels.
Located midway between the global financial centres of New York, London in the West and Singapore, Hong Kong in the East, DIFC (GMT +4) fills a vital time-zone gap with a workday that bridges the market and business hours of financial centres in both Asia and North America.
In 2015, DIFC launched its 2024 growth strategy, a blueprint for the next decade of growth of the financial hub. This strategy aims to stimulate trade and investment flows along the South-South economic corridor encompassing Africa, Southern Asia and Latin America.
Currently, 1,648 active registered companies operate from the Centre, with a combined workforce of 21,611 professionals.
DIFC continues to pursue expansion into new services and sectors within the Middle East, Africa and South Asia region, an area comprising over 72 countries with an approximate population of 3 billion and nominal GDP of US$7.4 trillion.
For further information, please visit our website: difc.ae, or follow us on Twitter @DIFC.
© Press Release 2017