International investor Sergey Entts, with interests in Dubai, Cyprus, and as a shareholder and chairman of Muras Bank in Kyrgyzstan, discussed infrastructure development for cross-border investments in an interview.
Key insights from the interview:
You recently acquired a stake in a Dubai financial firm. Are you planning significant moves in this market?
Absolutely. We aim to establish a strong cross-border trading ecosystem for securities. Our objective is to make undervalued securities from Central Asia accessible to global investors, while enabling local investors to access international markets. The primary challenge is the lack of financial infrastructure. My mission is to streamline trading between Kyrgyzstan and the UAE, making it as effortless as ordering food online, leveraging the full potential of fintech.
Why are you building a bank in Kyrgyzstan specifically?
The Kyrgyz market is attractive due to its growth potential and active development. The financial authorities are enhancing the sector, ensuring a legal framework for foreign investment. In 2022, Kyrgyzstan’s Investment Law allowed up to 20% foreign ownership with full control rights. Furthermore, transparency and protection mechanisms are improving. A key is the 2014 UAE-Kyrgyzstan agreement on foreign investments, crucial for our clients exploring Central Asia. Proper infrastructure is essential, and we’re dedicated to developing it.
What is the most significant development in Kyrgyzstan’s financial market recently?
The landmark event was the state issuing government securities, entering the debt market as a lender of last resort. This initiates a mature securities market, and we are eager to contribute. Kyrgyzstan’s first sovereign bond issue of $700 million sets a benchmark for corporate securities.
Will the Kyrgyz market attract foreign investors, such as those from the UAE?
I’m optimistic about the market’s appeal with the right conditions. Local securities are undervalued, presenting opportunities. UAE investors are open to new markets, often leading Middle Eastern financiers. Their involvement can trigger regional interest. With proper infrastructure and regulation, foreign investors and Kyrgyz participants can engage in efficient, transparent cross-border securities trading.
What is the current status of Muras Bank?
We recently received approval to establish the bank, injected capital, and registered the legal entity and its securities. We are now setting up operations, recruiting the core team, and implementing banking systems. Next, we will apply for a basic banking licence and additional licences like brokerage.
Will your bank offer standard services like deposits and loans?
Yes, these services are part of our plan, but we aim to offer more than standard banking. Our team’s expertise in securities markets and banking allows us to create new value forms, meeting emerging client needs. We focus on developing unique financial instruments and expanding market offerings, creating real added value beyond price competition.
Why pursue unconventional paths and advanced technologies despite costs?
Being first and efficient is crucial. Advanced technologies prove their value. Ten years ago, we launched remote bank guarantee issuance, becoming pioneers. Major banks later adopted it, but our early lead and adaptability allowed us to compete with large institutions for years.
What happened to your previous banking project?
It remains successful, ranking among the top ten in its market despite not leading in assets. I shifted focus to international markets, sold shares, and pursued new ventures. In Kyrgyzstan, we saw an untapped niche, launching a bank. Dubai offers a unique platform for cross-border investments.
What makes Dubai a unique international investment hub?
Dubai is a global investment magnet, strategically located between Europe, Asia, and Africa. Its diversified economy, driven by non-oil sectors like tourism, real estate, and finance, reflects a shift toward diversification. Initiatives like the Dubai Economic Agenda 2033 aim to double the economy. With over 300 wealth firms, Dubai offers direct access to Middle Eastern, African, and South Asian capital. Regulatory bodies like DFSA and DIFC create a balanced ecosystem, promoting innovation and investor protection, making Dubai a unique launchpad for global growth.
Will Alexey Skorodumov join your Dubai project?
Alexey, an expert in securities and investment strategy, has joined Muras Bank’s board of directors. His expertise is vital for building the new cross-border finance ecosystem between the UAE and Kyrgyzstan.
Why do people rarely leave your team?
I select team members carefully, ensuring alignment with our values and goals. We look for results-driven, efficient professionals. Our supportive environment and shared mission keep them engaged and committed.
Can you elaborate on your Dubai plans?
I recently became a shareholder in a financial company here. The strong interest from UAE investors in cross-border initiatives and emerging markets is promising. Their local regulatory support sets a benchmark for others.
