International finance has great significance in the field of financial economics. The core of this topic is monetary interactions between two or more countries.
Until 1991 there was no globalization and the people were limited to their countries only, so in this case the arrangement for finance was done with in the country only. But after the reforms of globalization of 1991 the things got changed and the concept of foreign investors came into existence. In simple language the investors now can invest the money foreign soil.
So it can be concluded that the source of project financing Dubai is not confined to the national boundaries. So the entrepreneurs have option to collect the money from outside the country and invest it into the business on the condition to share the benefits.
How many types of financial planning are there?
There are three types of commercial banking
There are the commercial banks in UAE like Abu Dhabi Commercial Bank, Al Khaliji S. A., Ajman Bank, Al Ahli Bank of Kuwait, Al Hilal Bank, Arab African International Bank and Al Masraf. Though these commercial banks are located in UAE but still they function as the foreign commercial bank.
International agencies and development banks
There is the conceptfamous as financial institution UAE with an objective of development. So there are many international institution as well that are providing the finance with a motive which we know as development.
International Capital Market for finance project Funding Dubai
In UAE there is a capital market where we purchase and sell the shares and debentures, so the same way there are other markets that are international capital market.
GDR or Global Depository Receipt is one of the four important parts of the ICMA. So if the company form UAE have to raise the fund and this company want to raise the fund outside the country. For a moment let us take an example that this company wants to raise the fund from United States of America, so further an American investor is ready to invest in a company that is listed in UAE.
So can this investor directly purchase the share of an Indian company or just assume that there are lots of investors who consider a company listed in UAE as profitable, so how they will be able to invest by purchasing the share of the company in which they are interested.
So if we come to an example then the UAE real estate industry is the perfect example of such concept. So the domestic custodiansor the overseas funding companies Dubai that holds the share of a UAE company will contact the overseas depository bank in USA. This overseas depository bank will inform/acknowledge the investors in US about the share held by it as a counterpart of domestic custodian of UAE.