UAE Stock Markets Booming In 2003

by Lorys Charalambous, Tax-News.com, Cyprus

24 October 2003

The stock markets of the United Arab Emirates, which include the Dubai Financial Market, have witnessed unparalleled growth in the first nine months of the year closing up over 1,615 points by the end of September, up 29% on the previous year, the Khaleej Times reports.

According to a report by the Emirates Securities and Commodities Authority (ECSA), market capitalisation has jumped significantly in the same period to reach a level of Dh4.5 billion ($1.23 billion), up 17% and Abdullah Salim Al Turifi, Executive Director of the ESCA attributes much of the growth to the end of the war in Iraq, creating a much more stable economic environment.

"The return of a small portion of the Arab migrant assets from offshore had a positive impact on the increase of market liquidity which in turn helped market stability," said Al Turifi.

He continues: "Adoption of stringent regulations and corporate governance, transparency of the companies' half yearly and quarterly profits, restoration of investors' confidence in the stock market regulations and absence of alternative investments opportunities are some of the reasons that helped in local market growth in the last nine months."

Al Turifi explained that the banking sector has led the recovery, growing 32% with the industrial sector also recording healthy growth of 27%, and the ESCA chief expects the trend to continue in the months ahead.

"The overall level of volumes were high in the last nine months on both Abu Dhabi Securities Market and the Dubai Financial Market with optimism that the markets will retain their activities," he said.

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