A new report has set out how Ireland could benefit as a key location for EU financial services for the Asian market in the wake of Brexit.
The report, which has been written by PwC with Irish think-tank Asia Matters, outlines the expansion of Asian financial services and the prospective role of Ireland as a global hub for Asian FSCs. The report, which was published last week, states that in a post-Brexit world Asian financial institutions are particularly concerned about risk and uncertainty. Yet the report argues that the English-speaking Republic of Ireland offers something of a safe haven for such companies.
Ireland is home to 80% of the world’s leading 25 FSCs, has a diverse portfolio of FDI and business-friendly policies on taxation and regulation.
The report centred around four key areas that build on Ireland can play to its strengths in growing its Asian base: ship finance, aircraft leasing, asset financing and investment management.
Alan Dukes, chairman of Asia Matters, said that Asia accounts for 40% of global GDP and 60% of global population. By 2020, Asia as a whole is forecast to account for 50% of global GDP and 75% of global population. In its report, PwC reasserted its forecast that emerging markets will be one of the foremost drivers of economic growth worldwide in the coming 30 years.
Britain’s imminent withdrawal from the EU signals a wider advantage for the Republic of Ireland, as the UK will likely lose EU passporting arrangements. The British government has stated its intention to leave the EU’s customs union in March 2019.
‘The perfect location’
Upon launching the report at the European Financial Forum, Feargal O’Rourke, managing partner at PwC said, “Ireland’s policy framework promotes an open and competitive business environment and the certainty of the corporate tax rate provides confidence to investors. A young, talented and adaptable domestic workforce, supported by the increasing international talent currently being attracted to Ireland, ensures a continued supply of high-quality labour for companies. As a gateway to Europe, Ireland provides a perfect location for Asian companies to invest.”