OPINION - İstanbul on track to become an international financial center

www.todayszaman.com - Mustafa Baltici - Of late, the term “financial center” has become a buzzword for emerging markets gearing themselves towards undertaking hefty projects in financial industries and real estate.

Tax incentives, legal system overhauls, rebates for businesses and labor market reforms are at the top of the to-do list for these emerging market countries in an effort to entice foreign institutions to divert funds in their direction. Another tool, the so-called investment promoters, usually funded by governments, utilize their significant budgets to liaise with key CEOs, bank officials and fund managers in order to secure long-term resources for their clients. These efforts seem to be producing results. Shored up by foreign investors, private equity markets in these countries are building up momentum. Local banking is enjoying an influx of capital, and securities markets as a result take on both diversity and liquidity. From the heights of virtual reality the outlook appears to be quite favorable. The flipside, however, points to economic ups and downs as well as rivalry and stiff competition among peers in the not so distant future.  (source)