Capital Markets
From The Report: Dubai 2014
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Driven by enhanced liquidity in the banking sector, rising property prices and an overall improvement in the domestic economy, Dubai’s capital markets began 2013 in full recovery mode. The Dubai Financial Market is a largely retail market at present, but it is preparing for a surge in institutional trading activity and an influx of foreign investment as a result of the MSCI index upgrade to “emerging market”. Although the UAE will not officially be included in the MSCI index until May 2014, the news alone put the country’s three equity markets, which have an estimated $7trn in assets under management, on the radar of global institutional investors. This is expected to boost liquidity and broaden the investor base of exchanges.

This chapter contains interviews with Essa Kazim, Chairman, Dubai Financial Market, and Governor, Dubai International Finance Centre; and Gerald Hassell, Chairman and CEO, Bank of New York Mellon.

Articles from this Chapter

Overview

New era: A status upgrade is set to boost investor sentiment and investment inflows
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Driven by enhanced liquidity in the banking sector, rising property prices and an overall improvement in the domestic economy, Dubai’s capital markets began 2013 in full recovery mode. In June 2013 the UAE was finally upgraded from “frontier” to “emerging market” status by the global index compiler MSCI, after nearly five years of efforts to achieve the coveted designation. Though the UAE will not officially be included in the MSCI index until May 2014, the news alone put the UAE’s three…

Interview

Receiving an upgrade: OBG talks to Essa Kazim, Chairman, Dubai Financial Market (DFM), and Governor, Dubai International Finance Centre
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Interview:Essa Kazim What djustments and upgrades need to be considered following the MSCI upgrade from frontier market status to emerging market? ESSA KAZIM: Since 2006, when the DFM became the only publicly listed exchange in the Middle East, it has undergone a dramatic improvement to back-office operations and operating efficiency. These advancements have helped to attract significant liquidity into the system, which in turn has generated new revenue and kept the exchange profitable. Furthermore,…

Analysis

Listing locally: Demand is growing among retail investors for IPOs
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Despite the ample liquidity in the Gulf region, Dubai’s exchanges still lack diverse debt-financing tools for small and medium-sized enterprises (SMEs) and are in need of new listings from major national companies to boost trading volumes and broaden the institutional investor bases of bourses. New Listings In the wake of the MSCI upgrade announcement, a trio of companies announced plans to float shares on NASDAQ Dubai nearly five years after the emirate’s last initial public offering (IPO).…

Interview

Laying the foundations: OBG talks to Gerald Hassell, Chairman and CEO, Bank of New York Mellon
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Interview:Gerald Hassell Is the absence of institutional investors in Gulf bourses a serious impediment to market depth? GERALD HASSELL: The regional markets remain dominated by retail investors, but inflows from foreign investors have been on an upward curve. Development of the local institutional market would be a critical step in increasing depth. We only need to look at global markets to understand the impact of large sums of managed monies on an exchange. The development of a regional…