NYU Abu Dhabi's Stern School Unveils First Financial Centre Competitiveness Index At Global Markets Summit

The Stern School of Business at NYU Abu Dhabi (Stern at NYUAD) has introduced the Financial Centre Competitiveness Index (FCCI) during Abu Dhabi Finance Week's Global Markets Summit. This index ranks international financial hubs, placing New York, London, and Singapore at the top. In the GCC, Abu Dhabi ranks 12th, Dubai 14th, Riyadh 26th, and Doha 29th.

The FCCI aims to fill a gap left by traditional indices that rank financial centers without explaining their drivers. By integrating data science with strategic analysis, it offers policymakers insights into how these centers compare and compete. This helps emerging hubs plan for growth and supports decision-makers in navigating complex global economic dynamics.

The FCCI employs a two-pillar framework: Footprint and Dynamics. The Footprint pillar evaluates current scale and activity, including institutional strength and local ecosystems. The Dynamics pillar assesses growth potential and future readiness, focusing on technology and innovation. Together, they provide a comprehensive view of a center's current status and preparedness for future challenges.

Bruno Lanvin, President of the Descartes Institute and Senior Advisor at Stern at NYUAD's Institute for Global Financial Competitiveness, emphasized the need for tools that help financial centers think long-term amid shifting growth engines and rising geopolitical risks. "The Index is meant to sit at the intersection of data and strategy," he stated.

An online platform accompanies the FCCI, allowing users to adjust weights, test scenarios, and generate custom rankings based on policy or investment priorities. Anisa Shyti from Stern at NYUAD highlighted its practical use: "By separating Footprint and Dynamics... we give policymakers... the power to stress test their assumptions."

The Institute for Global Financial Competitiveness (IGFC), which launched last month at Stern at NYUAD with support from ADDED and Dalio Philanthropies, produced the FCCI. It treats financial centers as nodes of "engineered capital" within an increasingly networked global economy.

GCC's Rising Influence

The GCC's performance reflects a broader regional trend of strengthening regulatory frameworks, targeted investments in innovation, and expanding financial activity. These developments highlight the importance of tools like the FCCI in understanding how financial centers evolve over time.

Rob Salomon, Dean of Stern at NYUAD, noted that international financial centers offer clear insights into global economic shifts. He said: "With the FCCI... we wanted to move beyond league tables... The strong performance of cities located in the Gulf region shows how fast new hubs can move when policy... are aligned."

The FCCI will be published annually by IGFC as part of a multiyear effort to develop better tools revealing trends shaping global finance. Conferences, publications, and partnerships will expand its reach further.

With inputs from WAM