Capital Markets
From The Report: Dubai 2018
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Dubai is home to a domestic stock exchange, an international market with one of the largest concentration of sukuk (Islamic bonds) in the world, as well as equity futures and three derivatives platform operators: the Dubai Gold and Commodities Exchange, Dubai Mercantile Exchange and Nasdaq Dubai. The emirate continues to attract major international sukuk listings and all of its exchanges are in the process of expanding their product offerings, including moves into areas such as index funds and real estate investment trusts, and various new types of derivatives contracts.
This chapter contains interviews with Essa Kazim, Chairman, Dubai Financial Market; Hamed Ali, CEO, Nasdaq Dubai; and Abdulfattah Sharaf, Group General Manager and CEO for the UAE, HSBC Bank Middle East.
Articles from this Chapter
Awaiting developments: The sector continues to innovate, but external factors could affect further advancement
Awaiting developments: The sector continues to innovate, but external factors could affect further advancementOBGplus
Dubai is home to a domestic stock exchange, an international market with one of the largest concentration of sukuk (Islamic bonds) in the world, as well as equity futures and three derivatives platform operators: the Dubai Gold and Commodities Exchange (DGCX), Dubai Mercantile Exchange (DME) and Nasdaq Dubai. The emirate continues to attract major international sukuk listings and all of its exchanges are in the process of expanding their product offerings, including moves into areas such as index…
Building and growing: Essa Kazim, Chairman, Dubai Financial Market (DFM), on how Dubai is maintaining its status as a leading financial hubOBGplus
Interview:Essa Kazim How will the expansion of DFM’s sharia-compliant standards impact the growth of Islamic finance? ESSA KAZIM: The Islamic finance industry is deeply rooted in Dubai. In fact, the DFM was the first sharia-compliant exchange globally. Over time, as more Islamic banks opened and attracted a growing number of clients from the Islamic world and beyond, it became clear that the lack of a sufficient regulatory framework and standardisation across the space was hindering its…
Building and growing: Essa Kazim, Chairman, Dubai Financial Market (DFM), on how Dubai is maintaining its status as a leading financial hubOBGplus
Interview:Essa Kazim How will the expansion of DFM’s sharia-compliant standards impact the growth of Islamic finance? ESSA KAZIM: The Islamic finance industry is deeply rooted in Dubai. In fact, the DFM was the first sharia-compliant exchange globally. Over time, as more Islamic banks opened and attracted a growing number of clients from the Islamic world and beyond, it became clear that the lack of a sufficient regulatory framework and standardisation across the space was hindering its…
Forward motion: Hamed Ali, CEO, Nasdaq Dubai, on opportunities for raising capital and growing foreign investmentOBGplus
Interview:Hamed Ali What are your expectations with respect to initial public offerings (IPOs) in the near future? HAMED ALI: We expect to see an increase in the volume of all equity-related transactions, not just IPOs, in late 2017 to early 2018. Not only have a number of firms recently announced that they are considering going public, but there has also been more interest lately in other types of capital-boosting activities such as real estate investment trusts (REITs). Dubai’s real estate…
Forward motion: Hamed Ali, CEO, Nasdaq Dubai, on opportunities for raising capital and growing foreign investmentOBGplus
Interview:Hamed Ali What are your expectations with respect to initial public offerings (IPOs) in the near future? HAMED ALI: We expect to see an increase in the volume of all equity-related transactions, not just IPOs, in late 2017 to early 2018. Not only have a number of firms recently announced that they are considering going public, but there has also been more interest lately in other types of capital-boosting activities such as real estate investment trusts (REITs). Dubai’s real estate…
Diversifying capital: The emirate expands its range of investment offerings to attract foreign backersOBGplus
Dubai’s capital markets are seeing innovation in a range of spheres, witnessing the launch of new fundbased products on its primary exchanges, as well as new types of futures contracts on both Nasdaq Dubai and the emirate’s derivatives-focused exchanges. PROPERTY VENTURE FUNDS: March 2017 saw the listing of a second real estate investment trust (REIT) on Nasdaq Dubai, in the form of ENBD REIT, an investment vehicle created by Emirates NBD, the largest bank headquartered in Dubai. The listing…
Diversifying capital: The emirate expands its range of investment offerings to attract foreign backersOBGplus
Dubai’s capital markets are seeing innovation in a range of spheres, witnessing the launch of new fundbased products on its primary exchanges, as well as new types of futures contracts on both Nasdaq Dubai and the emirate’s derivatives-focused exchanges. PROPERTY VENTURE FUNDS: March 2017 saw the listing of a second real estate investment trust (REIT) on Nasdaq Dubai, in the form of ENBD REIT, an investment vehicle created by Emirates NBD, the largest bank headquartered in Dubai. The listing…
Seller’s market: Debt market sees a jump in activity, as local and regional infrastructure projects flourishOBGplus
With some analysts suggesting that the 2017-20 period could see as much as $480bn in combined government expenditure across the GCC – with $288bn of that to be spent in transport and infrastructure projects alone – the region clearly maintains a considerable appetite for major capital investment. FINANCING NEEDS: In a lower oil price environment, however, GCC countries also face major challenges when it comes to funding these giant schemes. Dubai is no exception, with Expo 2020 rapidly…
Seller’s market: Debt market sees a jump in activity, as local and regional infrastructure projects flourishOBGplus
With some analysts suggesting that the 2017-20 period could see as much as $480bn in combined government expenditure across the GCC – with $288bn of that to be spent in transport and infrastructure projects alone – the region clearly maintains a considerable appetite for major capital investment. FINANCING NEEDS: In a lower oil price environment, however, GCC countries also face major challenges when it comes to funding these giant schemes. Dubai is no exception, with Expo 2020 rapidly…
Generating interest: Abdulfattah Sharaf, Group General Manager, CEO for the UAE and Head of International, HSBC Bank Middle East, on changes in debt instruments, liquidity and the market structureOBGplus
Interview:Abdulfattah Sharaf How much is the growth in both conventional and Islamic government debt issuance set to encourage corporates to use debt instruments? ABDULFATTAH SHARAF: On the back of lower global oil prices and a desire to diversify sources of funding, there has been an increase in regional sovereign debt market activity since 2014. In some cases, such as with Saudi Arabia, it was the first time the sovereign had accessed international bond markets. This activity was a boost…
