The UAE emirate of Abu Dhabi has cancelled a 50-year concession granted to Emirates Global Capital Corporation (EGCC), a local firm set up to develop and manage its Saadiyat Free Zone (SFZ) project, an official was quoted as saying in a local press report.

"Our 50-year concession to develop and manage the basic infrastructure of the Saadiyat Free Zone has been terminated ... EGCC is being dissolved," the official was reported as saying. The Abu Dhabi Free Zone Authority (ADFZA) had granted the executive responsibility for the development of the Saadiyat Financial Market to EGCC, which was capitalised at $3.3 billion, the report in the Khaleej Times said.

The Saadiyat Financial Market created as part of the project had been carefully planned to provide all the necessary elements of a successful financial market, including Saadiyat International Stock Exchange, Saadiyat Futures and Options Exchange and the Saadiyat Commodities Exchange.

The Saadiyat International Stock Exchange was the first to operate and was started with a small number of member firms with a potential to expand in tandem with increase in market capitalisation.

In addition to setting up the company, the authority was also in the process of establishing an exhibition centre and storage facilities with a capacity of 9.3 million tonnes, commercial buildings and a five-star hotel, besides residential and leisure amenities.

The commodities centre, including a 3.5 km runway for big cargo planes and a port unit, was supposed to have facilities to stock 67 commodities.

The concession initially given for 50 years was, according to reports, eligible for another 50 years by way of extension.

The financial market began operations from a temporary base in the capital last year, awaiting the completion of the purpose-built infrastructure on the Saadiyat Island. Initially seven national banks and financial houses were issued licences to operate from the centre.

EGCC was planning to raise more than $3 billion from the capital market, primarily from investors and through the launch of an initial public offering. It had set Dh10 as value for its shares, but did not follow through with the offering.

With the dismissal of EGCC, the future of the project has become uncertain, the report said.