'Integration of Abu Dhabi, Dubai exchanges to create strong markets'

The merger will help market Dubai and Abu Dhabi to be in a better position by trading with international exchanges and international financial institutions.

By (Wam)

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Published: Mon 21 Oct 2013, 3:18 PM

Last updated: Tue 7 Apr 2015, 8:22 PM

DUBAI - Mohammed Al Hashemi, President of the UAE Financial Markets Association, has said that the integration of the markets of Abu Dhabi and Dubai will create one of the strongest stock markets operating in the Gulf region, the Middle East and North Africa.

Al Hashemi said in an interview with Wam on Monday that since the UAE has expanded the scope of its securities markets to a global level, which in turn has led to greater competition, requiring it to have a broader securities market with sophisticated products to market locally and internationally.

Al Hashemi pointed out that the integration of the markets of Abu Dhabi and Dubai will lead to the establishment of a securities market leader with a variety of products to attract more investors and big opportunities to promote the UAE capital market, which would have significant benefits for both shareholders and participants in the market and thus the national economy.

He added that the merger will improve the performance of the financial market in the UAE and help the country to get ranked higher among regional and international securities markets, thus attracting a lot more potential investors, especially foreign ones and international portfolios.

Al Hashemi said that the proposed merger to create a single securities market enables investors to conduct business from one platform, dealing with a single supplier, which helps to build strong credibility in the financial markets.

He noted that the merger will help to market Dubai and Abu Dhabi to be in a better position by trading with international exchanges and international financial institutions, giving them opportunities to explore new markets and attract international investors and other strategic partners, making the merger between the two markets fully justified, providing additional features for each of them.

Al Hashemi described the merger as an appropriate business decision as there is not a need for two securities markets working in the same activity in the country.

He explained that shareholders of the Dubai and Abu Dhabi markets will receive significant benefits from the proposed merger, including greater investment in the merged entity, both financially and operationally, which will support the share price performance and increase the proportion of profit distribution.

Al Hashemi asserted that the merger will improve the trade environment under the umbrella of a single trading system and a single system for clearance and settlement, while raising the level of standards and services for brokerage firms.

He added that after the merger, market dealers in Abu Dhabi and Dubai will become partners, not competitors, and this increases the commercial value of stock trading and “cut the road to possible destabilisation and fragmentation” of the current situation of competition, and add to that the availability of small exchanges so as not to lose investors’ interest.

The UAE Financial Markets Association was founded at the end of 2011, and operates under the umbrella of the ACI – The Financial Markets Association based in Paris.

The UAE Financial Markets Association has 200 members of different nationalities and works to keep members informed of the changes in the financial industry and provide a forum for discussion in organised events on issues affecting the markets, the UAE. FMA enhances educational value and working experience and knowledge by providing appropriate educational services to those with a legitimate interest in the financial markets.

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