Global financial services professionals saw Dublin in a more attractive light in the run-up to the UK's decision to leave the European Union in June, a new survey reveals – and with Brexit looming, the city might stand to benefit even further.
According to the Global Financial Centres Index (GFCI), Dublin ranked in 31st place across 87 global centres in September of this year, up from 39 in March of this year. The survey was conducted up to the end of June, so the Brexit referendum result of June 24th is not fully reflected in the results.
“Early indications following the Brexit referendum result are that decision-makers are looking around and considering Luxembourg and Dublin as potential locations if they need to leave the UK,” the report says.
Back in 2009 Dublin made the top 10, but the collapse of the boom saw the city plummet down the rankings, falling to 70th in 2014. Dublin still does not feature in the any of the top 10 sub-indices, which rank centres for specialities in sectors such as asset management, banking, insurance and professional services.
When western financial centres only are considered, Dublin places eighth, behind close competitor Luxembourg (third place), as well as Frankfurt (fourth) and Paris (seventh).
Dublin was recognised as a “global leader” for its “broad and deep” financial services sector, alongside London, New York, Amsterdam and Frankfurt.
One pension fund manager in Zurich, responding to the survey, said that when the UK left the EU there would be no one centre that could become the “new London”. “Financial services in Europe will be split between several centres – Zurich, Frankfurt, Luxembourg and Dublin get my vote.”
Other centres
London is still the world’s leading financial centre, one point ahead of second-placed New York, but given that the survey was conducted ahead of Brexit it may lose pole position next time around. Hong Kong, Singapore and Tokyo make up the top five.
"Changes in perceptions following the Brexit referendum are not yet reflected in the GFCI. However, early signs are that London could see a decline next time round. Which centres may gain from this is hard to predict," Mark Yeandle, associate director at the Z/Yen Group and the author of the GFCI said.
Luxembourg was another strong performer in the survey, moving up two places to 12th, but Frankfurt, another contender for business from the UK, fell back one place to 19th. Luxembourg also made the grade for “the 15 centres likely to become more significant”, alongside Shanghai, Dubai and Gibraltar, and is ninth overall in terms of banking.
Offshore financial centres are recovering lost ground the survey shows, with Jersey, Guernsey, the Isle of Man, the Cayman Islands, Bermuda and the British Virgin Islands all up in the ratings.
