Capital Markets
From The Report: Dubai 2019
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Capital markets in Dubai are spread across multiple exchanges, each with an emphasis on a different asset class. With this structure established and still growing, the aim is to boost activity in all asset classes, and to create an overall offering with the breadth and depth to rival major global financial centres. For now, most securities trading is governed by external factors, foremost among them being oil prices. Equities values in particular have tended to rise and fall with the price of crude. Building long-term liquidity – the presence of enough securities and investors to make buying and selling easy, fast and free from price distortion – is the goal for most emerging markets such as Dubai, and the emirate is deploying a multi-faceted strategy to achieve this. This chapter contains an interview with Hamed Ali, CEO, Nasdaq Dubai.

Articles from this Chapter

Overview

Breadth and depth: Key goals include increasing liquidity, introducing new instruments and attaining developed market status
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Capital markets in Dubai are spread across multiple exchanges, each with an emphasis on a different asset class. With this structure established and still growing, the aim is to boost activity in all asset classes, and to create an overall offering with the breadth and depth to rival major global financial centres. For now, most securities trading is governed by external factors, foremost among them being oil prices. Equities values in particular have tended to rise and fall with the price…

Interview

Building blocks: Hamed Ali, CEO, Nasdaq Dubai, on diversifying the market’s offerings to attract new and foreign investors
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Interview:Hamed Ali How do you envisage the recent issuance of Industrial and Commercial Bank of China bonds on Nasdaq Dubai broadening the debt market? HAMED ALI: This region generally prefers debt over equity, so we should be seeing more interesting debt issuances from the region outside of the UAE. We have done very well in the debt market, especially in the sukuk (Islamic bonds) segment. Today, around 90% of globally listed sukuks are listed on Nasdaq Dubai, with a total value of around…

Analysis

Future options: A range of new possibilities are being considered for implementation or expansion to open the market further
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The focus on adding new instruments in Dubai – among them futures and options swaps – is being spurred on by the drive to boost liquidity on the emirate’s trading platforms. It comes with an emphasis on foreign institutional investors, with those from what are considered well-regulated markets being granted remote access to the trading platform, rather than being required to go through a local broker. The options for trading will also give investors exposure to Saudi stocks, which were…

Overview

Indexed growth: Inclusion in global indices often results in a greater flow of funds to capital markets, but it is just one aspect of the economic picture
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The period of easily raising funds from abroad seems to be coming to an end for emerging markets around the world. Amid rising interest rates in the US and increased competition for capital flows, portfolio managers are becoming more selective with where they invest. One way for developing nations to ensure that their financial markets can continue to attract foreign funds and remain sustainably liquid is by being included in well-regarded benchmark indices. In addition to drawing in fund managers, inclusion on such indices requires meeting specific standards that show that the participating countries apply certain regulations and best…

Overview

Indexed growth: Inclusion in global indices often results in a greater flow of funds to capital markets, but it is just one aspect of the economic picture
OBG
plus

The period of easily raising funds from abroad seems to be coming to an end for emerging markets around the world. Amid rising interest rates in the US and increased competition for capital flows, portfolio managers are becoming more selective with where they invest. One way for developing nations to ensure that their financial markets can continue to attract foreign funds and remain sustainably liquid is by being included in well-regarded benchmark indices. In addition to drawing in fund managers, inclusion on such indices requires meeting specific standards that show that the participating countries apply certain regulations and best…