Richard Teng, the CEO of the Financial Services Regulatory Authority at the banking free zone Abu Dhabi Global Market (ADGM) said here on Monday that despite commodity and asset prizes being under ongoing pressure, the fundamentals of the global economy remain strong.

Speaking on a panel discussion at the two-day Gulf Cooperation Council (GCC) regulators summit, Teng said while China is restructuring its economy and some emerging markets witness a slowdown in trade, "the fundamentals of the global economy remain strong, also because new global trade initiatives like China's 'Belt and Road' initiative open new doors for investments."

The initiative was proposed by the Chinese government in 2013. It refers to the Silk Road Economic Belt and the 21st Century Maritime Silk Road, which envisages the linking of development strategies of countries in Asia, Europe and Africa.

Meanwhile, Teng said the fact that the United States Federal Reserve started to normalize the interest rate environment also points to an improvement of the world's biggest economy, albeit commodity prices and listed assets have contracted in the last 18 months.

He also urged market participants to remain vigilant. "Financial centers like the ADGM can help to manage risks through regulatory standards, but they cannot eliminate risks."

The ADGM is the second financial free zone in the UAE behind the 2004-founded Dubai financial zone DIFC. Endit

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