Trading kicks off at new Dubai bourse

Trading has kicked off at the new Dubai International Financial Exchange, which the emirate hopes will promote its aim of becoming a global financial hub.

    The bourse is intended to fill a blank space in the trading day

    The first deals on Monday were only in five stock index certificates as the exchange has no company listing yet.

     

    Its first initial public offering is expected to come next month when the Lebanese telecommunications firm, Investcom, is listed.

     

    The chairman of the exchange, Lynton Jones, said he hopes to have 15 to 20 firms listing in the next 18 months.

     

    They are expected to come from the Middle East, the Indian subcontinent, China, South Africa and Eastern Europe.

     

    Filling the blank

     

    Located in a steel-and-glass building like the Arc de Triomphe, the Dubai exchange is intended to fill a blank space in the trading day.

     

    "We believe the DIFX fills a vacuum by creating an exchange in the heart of one of the world's most dynamic and fastest-growing economies"

    Mukhtar Hussein, head, HSBC's Middle East investment banking

    Currently market activity begins in Asia and jumps over the Middle East to resume in exchanges in Europe and North America.

     

    "We believe the DIFX fills a vacuum by creating an exchange in the heart of one of the world's most dynamic and fastest-growing economies," said Mukhtar Hussein, HSBC Bank's head of Middle East investment banking.

     

    HSBC has signed on as one of four European member banks that will handle IPOs and other market duties.

     

    Local stock markets, which tend to permit only residents to trade, are booming in the Middle East.

     

    By contrast, the Dubai exchange is an international market that is open to foreign companies and foreign investors.

     

    The exchange's operators say it will run under the same transparency and regulatory rules as the New York and London exchanges.

     

    For now, the market will open Monday-Friday for only three hours a day, between 2pm and 5pm (1000 to 1300 GMT).

    SOURCE: AFP


    YOU MIGHT ALSO LIKE

    Survivor stories from Super Typhoon Haiyan

    Survivor stories from Super Typhoon Haiyan

    The Philippines’ Typhoon Haiyan was the strongest storm ever to make landfall. Five years on, we revisit this story.

    How Moscow lost Riyadh in 1938

    How Moscow lost Riyadh in 1938

    Russian-Saudi relations could be very different today, if Stalin hadn't killed the Soviet ambassador to Saudi Arabia.

    We Are Still Here: A Story from Native Alaska

    We Are Still Here: A Story from Native Alaska

    From Qatar to Alaska, a personal journey exploring what it means to belong when your culture is endangered.