Brokers Say UAE Stockmarkets Set To Surge

by Lorys Charalambous, Tax-News.com, Cyprus

19 September 2002

Brokers in the United Arab Emirates (UAE) have predicted that turnover on the region's two official exchanges is set to surge to record levels this year.

Reporting on the situation on Tuesday, Gulf News Online revealed that: 'Turnover in the two official bourses of Abu Dhabi and Dubai as well as over-the-counter share trading was as high as Dh3.31 billion ($901 million) by the end of August, far higher than the turnover during last year of Dh2.13 billion ($580 million).'

Analysts have suggested that the upsurge in trading volumes on the regional stock markets comes as a result of a combination of factors, including low interest rates, high share yield, comparatively strong half-yearly performance from most listed banks and companies, and the return of a proportion of assets held overseas due to global market turbulence.

However, the extent to which the last two elements have affected the success of the UAE's twin bourses has been disputed.

Also speaking to the Gulf News Online this week, Imad Shehab, director of research for the Union of Arab Banks painted a less optimistic picture, announcing that banks and other financial institutions in the Gulf region have suffered significantly in the wake of last year's September 11 terrorist attacks, plunging from a record $9.3 billion in regional profit in 2000, to $7 billion in 2001.

Shehab added that profits are predicted to slump even further this year, to $5 billion, although he defended the region's banks profit levels given the current international economic context.

Recommended