Dubai Stock Exchange

The Dubai Financial market (DFM) started functioning on the March 26, 2000. According to the Managing Committee though only shares are to be traded in the beginning the market aims at dealing in a broad spectrum of financial instruments such as Bonds, Options, Treasury Bills etc.

A broker dealing in the exchange must be one who is licensed by the Authroity for Securities and Commodities and must have capital sufficiency as per requirements. The DFM will start listing all joint stock comapnies registered with the Federal Authority. The authorities are currently preparing a system to ensure maximum transparency for the companies registered with DFM. It is suggested that there will be about nine brokers working in the beginning with a possibility of increasing the number in the light of new development.

All investor dealings will bge acrried out through a broker only when paying or taking delivery. The brokers will be linked to the "clearance house" through the settlement account. It is intended that the seller can get his proceeds with in three days of trading from the broker.

DFM boasts of a clearance settlement and electronic trading system that can match to the best international practices as it has sought the help of experts drawn from developed countries who have long experience in electronic trading.

It is expected that the U.A.E. Government, like some other Gulf Countries will allow foreign investors to invest directly whether in shares or in other economic sectors with in certain set limits. This will definitely bring in a boom in the market.

It is hoped that the settling up of the Dubai Bourse will bring in financial discipline and regulate selling and buying transactions and provide the Investors an efficient, transparent and unbiased investing environment.

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