Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

Dubai- Marketing and bonding  Join our daily free Newsletter

MENAFN - Oxford Business Group - 08/03/2009

No. of Ratings : 0
Add to Mixx!


 


(MENAFN - Oxford Business Group) New products along with the promise of an expanded bond market could herald an era of fresh dynamism for Dubai's capital markets, despite their difficult time of late.

Currently, the emirate is almost spoiled for choice in its capital markets, with two main exchanges for bonds and equities, along with the Dubai Gold and Commodities Exchange, which trades in commodity derivatives, and the Dubai Mercantile Exchange, which trades in energy and commodities.

The emirate's oldest exchange is the Dubai Financial Market (DFM), which started operations in 2000 to provide a market for investors to buy and sell the stocks of publicly held companies in the UAE. As of the beginning of March, the DFM had 65 companies listed on its boards, while also conducting bonds, Islamic sukuk and mutual funds trading, though at a low volume.

The other main equities exchange is the Nasdaq Dubai, located within the Dubai International Financial Centre (DIFC). The exchange, which opened in 2005 to trade in both local and overseas equities, was re-branded in November from the Dubai International Financial Exchange (DIFX), with the name changing to its present form. The move was a reflection of the market's close links with the Nasdaq OMX Group, the world's largest exchange company, which owns a one-third stake in the exchange.

The name change, as well as Nasdaq OMX's initial buying into the DIFX in February 2008, was also a reflection of the further internationalisation of Dubai's capital markets. Firms trading on the US Nasdaq and Scandinavian OMX exchanges now have the opportunity to cross list in Dubai.

Both Nasdaq Dubai and the DFM are controlled by Borse Dubai, the state-owned holding company established to consolidate the management of the two exchanges as well as investments in other exchanges. The company itself made capital market headlines in mid-February when it closed a fully subscribed 2.5bn (Dh9.1bn) syndication to refinance part of its 3.78bn debt, which had been set to mature on February 28.

The Nasdaq Dubai is regulated by the Dubai Financial Services Authority (DFSA), which is the independent body charged with overseeing all of the financial and ancillary services within the DIFC. Both the exchange and the DFSA work closely with the federal Emirates Securities and Commodities Authority as well as the UAE central bank.

Though Dubai's capital markets have experienced a sharp downturn over the past year, with the DFM dropping 72.4% in 2008 and the Nasdaq Dubai also sliding, it is hoped that these losses have bottomed out and that new developments will help regenerate the financial sector.

One such development occurred on March 2 with the launch of a new sharia-compliant tradeable security, backed by gold and to be traded on the Nasdaq Dubai. The securities will be marketed by Dubai Commodity Asset Management, a unit of the Dubai Multi Commodities Centre (DMCC).

According to Ahmed bin Sulayem, executive chairman of the DMCC, the new securities trading will open up fresh opportunities for investors.

"Dubai Gold Securities will establish a benchmark for investors looking for innovative solutions to invest in commodities within the framework of Islamic finance," bin Sulayem said at the launch of the security.

The capital market had received a boost in mid-February, when the Dubai government announced it was launching a 20bn bond to fund its financial obligations and press ahead with development projects. On January 10, the government released details of its budget for the forthcoming year, which included its first-ever projected deficit, a shortfall of 1.1bn, as well as a 42% increase in public spending.

A statement issued by the Dubai Department of Finance said the bond would provide the government with the necessary funds amidst the deepening global liquidity crunch.

The bond issue received an immediate response, with the UAE Central Bank subscribing to the first issuance of 10bn worth of the five-year bonds.

In November, Mohamed Alabbar, head of a special committee established to develop strategies to combat the global economic crisis, said the state was carrying debts of 10bn, while government-operated companies had about 70bn of debt burden.

While this is only a fraction of the 350bn that Alabbar said the government and affiliate companies hold in assets, there were concerns that Dubai would have difficulties meeting some of its short-term debt and in being able to inject new funds into the economy. With the launching of the government bonds, some of these concerns have been eased.

To date, there has been little in the way of a bond market in Dubai, mainly due to the state running a substantial budgetary surplus. However, changing circumstances mean bonds could play a greater role in the emirate's capital markets, giving investors yet another option while simultaneously encouraging the development of a private bonds market.

According to Nasser Saidi, chief economist for the DFIC, the new bonds will allow the Central Bank to establish a government bonds and sukuk market, eventually leading to open market operations in terms of the selling and purchase of government bonds.

Moreover, the bonds will allow companies to price bonds and sukuk, which they will offer through the Dubai government's bonds index, as well as provide the emirate with enough liquidity to complete its construction and infrastructure projects, Saidi said in an interview with the local media on February 24.

Though Dubai's capital markets may have had a lean year in 2008, the final pieces are being put in place for them to make the most of the economic recovery when it comes.

 






  MENA News Headlines
Apr 24 2014Qatar- HH Sheikha Moza Meets Mayor of Kobe Visits RIKEN Research Institution ,Qatar News Agency
(MENAFN - Qatar News Agency) Kobe April 24 - Her Highness Sheikha Moza bint Nasser Chairperson of Qatar Foundation for Education Science and Community Development (QF) today held a meeting with the ...

Apr 24 2014Qatar- Sidra-BMC Event Boosts Biomedical Research Publishing ,Qatar News Agency
(MENAFN - Qatar News Agency) Doha April 24 - A symposium organised jointly by Sidra Medical Research Centre and BioMed Central (BMC) mulled trends in research and on open access publishing here ...

Apr 24 2014Qatar- Mannai Corp Q1 Net Profit up 73% to QR 150.1 Million ,Qatar News Agency
(MENAFN - Qatar News Agency) Doha April 24 - Qatar Exchange listed Mannai Corporation (QE: MCCS) net profit is up 73% to QR 150.1 Million for the first quarter of fiscal year 2014 ending March 31 ...

Apr 24 2014Bahraini firms forecasted to grow 10 pct ,MENAFN
(MENAFN) In a report based on a study of over 650 companies across GCC, Kuwait Financial Centre (Markaz) forecasts a growth of the Bahraini companies' earnings by 10 percent in 2014, Gulf Daily News ...

Apr 24 2014Israeli Army Storms Deir Samit Village West of Hebron ,Qatar News Agency
(MENAFN - Qatar News Agency) bron April 24 - Israeli army forces stormed at dawn Thursday Deir Samit village southwest of Hebron city in the West Bank. The Israeli forces conducted raid and search ...

Apr 24 2014Qatar Airways to add more seats on Doha-Vienna route ,MENAFN
(MENAFN) Qatar Airways plans to offer more 1.700 seats on its Doha-Vienna route beginning from September 2014, according to Gulf News. The company aims to expand the growing passenger demand from ...

Apr 24 2014Qatar- QFC Authority Five-a-Side Football Tournament Kicks Off ,Qatar News Agency
(MENAFN - Qatar News Agency) Doha April 24 - Qatar Financial Centre (QFC) Authority's first Five-a-side Football Tournament is displaying dribbling skills of executives from Doha's financial ...

Apr 24 2014Qatar Stock Exchange Down 0.05% ,Qatar News Agency
(MENAFN - Qatar News Agency) Doha April 24 - The Qatar Exchange ended in the red area when trading closed Thursday at 12954.93 points (0.05%) down 6.63 points from the previous closing of 12961.56 ...

Apr 24 2014Israeli Tanks Enter Gaza Border area ,Qatar News Agency
(MENAFN - Qatar News Agency) Gaza April 24 - Six Israeli military tanks on Thursday entered a border area in the southern Gaza Strip witnesses said. The tanks crossed into Gaza in an area called ...

Apr 24 2014President Salva Kiir Relieves his Chief of the General Staff ,Qatar News Agency
(MENAFN - Qatar News Agency) Juba April 24 -South Sudanese President Salva Kiir relieved Chief of the General Staff of south sudan army James Hoth Mai. This came in a presidential decree aired ...

Apr 24 2014Georgian Justice Minister Leaves Doha ,Qatar News Agency
(MENAFN - Qatar News Agency) Doha April 24 - HE Minister of Justice of Georgia Tia Tsulukiana left Doha on Thursday morning wrapping up a two-day official visit to the country. An agreement on ...

Apr 24 2014Egyptian Premier Off to Chad ,Qatar News Agency
(MENAFN - Qatar News Agency) Cairo April 24 - Egyptian Prime Minister Ibrahim Mehlib left cairo on Thursday for Chad the first leg of a three-day two-state trip that will also take him to Tanzania ...

Apr 24 2014Australian Federal Parliament Deputy Speaker Meets HE Qatari Ambassador ,Qatar News Agency
(MENAFN - Qatar News Agency) Canberra April 24 - Australian Federal Parliament Deputy Speaker Bruce Scott met here Thursday with HE Qatar's Ambassador to Australia Yousef bin Ali Al ...

Apr 24 2014Afghan Guard Shoots Dead 3 Foreigners in Hospital ,Qatar News Agency
(MENAFN - Qatar News Agency) Kabul April 24 - Three foreigners including a doctor were shot dead and their colleague wounded when a guard of a private Cure Hospital opened fire on them in the ...

Apr 24 2014Omani non-oil exports to enter African markets ,MENAFN
(MENAFN) A senior official at the Oman Chamber of Commerce and Industry (OCCI) said that the Sultanate is seeking expansion in new African markets, in a time it is looking forward to reduce its ...

Apr 24 2014US Secretary of State Meets Egyptian Intelligence Chief ,Qatar News Agency
(MENAFN - Qatar News Agency) shington April 24 - US Secretary of State John Kerry has met with the Egyptian Intelligence Chief Major General Mohammed Ahmed Fareed al-Tohami who is currently ...

Apr 24 2014Egypt's Interim President Receives Phone Call from South African President ,Qatar News Agency
(MENAFN - Qatar News Agency) Cairo April 24 - Egypt's Interim President Adly Mansour has received a telephone call from President of the Republic of South Africa Jacob Zuma in which they discussed ...

Apr 24 20143 GCC countries among top 30 on network readiness index ,MENAFN
(MENAFN) According to an annual global technology survey for network readiness index for 2014, three GCC countries have made it to the top 30 list for the third year in a row, Gulf Daily News ...

Apr 24 2014Morocco Admitted As Observer Member to SICA ,Qatar News Agency
(MENAFN - Qatar News Agency) La Romana Dominican April 24 - Morocco has been admitted as an observer member in the Central American Integration System (SICA) which also includes each of Belize ...

Apr 24 2014Sharjah Ladies Club organizes "Sharjah Ladies run" at the University City ,MENAFN Press
(MENAFN Press) Sharjah Ladies Club gears up to launch "Sharjah Ladies run" at the Sharjah University City. With over 250 participants, the activity aims to encourage women and enable them to ...

more...


 
Click to Apply






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country
Marketwatch News
UPI News
Comtex News

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help