Chief Executive Officer of Pakistan's Central Depository Company (CDC) Hanif Jakhura will sign two separate MoUs with Abu Dhabi Securities Market (ADSM) and Dubai Financial Market (DFM) on September 18 and 20 respectively. The memorandum of understandings will pave the way for cross listing of firms on the bourses of the two countries, people familiar with recent developments told Khaleej Times yesterday.

"The MoUs will also cover various aspects of technology exchange, operational procedures and other areas of cooperation," they added.  CDC is also hosting two road shows on September 18 and 20 in Abu Dhabi and Dubai respectively to promote investment in the capital markets of Pakistan. These road shows intend to offer new avenues of investment in one of the region's best performing stock markets besides updating potential investors on the economic climate of Pakistan.

The road shows will also highlight the role of CDC as an infrastructure service provider to facilitate investment in the Pakistan's capital market.

Foreign investment in Pakistan's capital markets recorded significant growth in 2006 and more than doubled to Dh1.278 billion ($351.5 million) by June 30 this year. It stood at Dh554.9 million ($152.6 million) in corresponding period of last year.

As many as 658 companies having market capitalisation of Dh170 billion and listed capital of Dh30 billion were listed on Karachi Stock Exchange (KSE) by June 30 this year. KSE was declared the 'Best performing stock market of the world' in 2002.

According to Bilal Khan, Commercial Secretary at Pak Consulate in Dubai, top firms from banking, telecom and real estate sectors will be selected to list on ADSM and DFM at first stage. "The signing of MoUs will open doors for new opportunities as investors from both sides hold stakes in many joint ventures and they will be interested in cross listing of their firms," he said. "There is no specific name is identified yet but up to 15-20 firms from both sides may be interested in cross listing by early next year," he added.  Pakistan Telecommunications Company Limited, United Bank Limited and Bank Alfalah — three leading firms in which UAE has significant shares —  are among those probable names that will be listed on UAE stock exchanges during first phase.

While from the UAE side, M/S Enshaa - a joint venture of Al Futaim Group of the UAE with a Pakistani group, Abraaj Capital - a joint venture equity fund - may be listed on Karachi Stock  Exchange initially. 

"A high level delegation of PBC, ADSM and DFM will soon visit Pakistan to explore areas of cooperation in capital markets as well as to finalise the possible firms for cross listing," Pasha added.

    In reply to a question, he said Pakistani firms will get more opportunities in the UAE financial markets after the signing of MoUs. "Besides listing on ADSM and DFM, Pak mutual funds and asset management firms can also plan their registration in Dubai International Financial Centre," he said.  

Syed Qaiser Anis, President of Pakistan Business Council Abu Dhabi, said road shows in Abu Dhabi and Dubai will help promote investment in the Pakistani capital markets.  "We have been in close contact with top officials of the two sides to level grounds for increased cooperation in equity markets," he said. "A PBC delegation will soon visit Pakistan to expedite process for listing of Pakistani companies on the UAE bourses," he said.

    In reply to a question, he said PBC played a key role in arranging the road shows in the UAE and it will not only promote investment in Pakistani capital markets but also help address queries and concerns of the UAE business community.

"Road shows are fully supported by PBC and will attract potential UAE investors," he said adding that the second road show will be held at Burj Al Arab on September 20 in Dubai.