The Gelephu Mindfulness City could soon have a new financial gateway to the Middle East. DK Bank received In-Principle Approval (IPA) to establish a subsidiary in Abu Dhabi. However, DK Bank will still need to meet the conditions of the approval and obtain its final licence before beginning operations.
DK Bank received the In-Principle Approval from the Financial Services Regulatory Authority, or FSRA, of Abu Dhabi Global Market, ADGM, to establish a subsidiary in Abu Dhabi.
The planned subsidiary will provide services including brokerage, custody, payments and financial advisory services.
This, according to the Bank, makes them the first Bhutanese bank to receive an in-principle regulatory approval to offer financial services outside Bhutan.
The chairperson of DK Bank, Gelay Jamtsho, said the Abu Dhabi presence will serve as an international base, helping connect the Gelephu Mindfulness City and Bhutan with global investors, financial institutions, and capital.
The move comes as regulatory cooperation between the GMC and Abu Dhabi Global Market has been growing. In April last year, the Gelephu Financial Services Office and ADGM’s financial regulator signed an agreement to cooperate on regulation, information sharing, and engagement.
However, the approval is not yet the final licence. DK Bank will first have to meet the conditions of the In-Principle Approval and receive the final Financial Services Permission before establishing its Abu Dhabi operation.
For DK Bank, the planned Abu Dhabi presence marks a step into international markets. And for GMC, it could provide another link between Bhutan’s emerging financial centre and investors beyond the region.
Passang Dorji/Karma Wangdi, Gelephu
