The financial market is considered to be a place where company’s and people enter into contracts. The purpose here is to buy or sell specific products like bonds and stocks. There are various financial market types that the investor can look into. This depends entirely on what he wants to sell and buy.
Introduction to the financial markets
The two most well known financial markets of the UAE is the ADSM (Abu Dhabi Securities Market) and the DFM (Dubai Financial Market). Some examples of companies offering bonds and stocks in the UAE are as follows:
- Amlak Finance
- Air Arabia
- Dubai Islamic Bank
- Deyaar Holding
- Takaful House
- Oman Insurance Company, etc.
Dubai Financial Market
It has its own autonomous corporate body and was formed as a public institution. It operates as the secondary market for trading bonds offered by federal governments, securities offered by public shareholding organizations, or other public or local government institutions within the country, foreign or local financial instruments, investment fund unit, etc. on 26th March 2000, DFM commenced operations. About 1.6 billion shares were issued by DFM in November 2006 on its first public offering. This represented 20% of AED 8 billion paid-up capital. DFMN was then declared a public joint organization. The Dubai government following the IPO retained the company’s remaining 80% through Borse Dubai Ltd.
- Dana Gas
- Bank of Sharjah
- Emirates Driving Company
- RAK Properties
- Qatar Telecom
About Abu Dhabi Securities Market
It was on November 15, 2000 that ADX (Abu Dhabi Securities Exchange) was set up by the Local Law No. (3) of 2000. Its provisions vest the market offering it a legal autonomous entity, independent management and finance, thus giving it the necessary executive and supervisory powers for exercising its functions.
Some of the functions are given below:
- For benefitting the national economy, opportunities are provided for investing savings and funds in the form of securities.
- Ensuring accuracy and soundness of transactions for ensuring interaction between supply and demand for determining prices.
- To safeguard the interest of the investors by setting up proper and fair dealing principles between the different investors.
- Develop awareness among investors by conducting studies and researches, issuing recommendations for ensuring that savings get invested in proper productive segments.
- To impose strict control on securities transactions for ensuring accurate and correct procedure.
- Ensure economic and financial stability. To develop trading methods for ensuring liquidity as well as price stability of Securities that are listed on the financial market.
Besides this, ADX has been given the authority of establishing branches and centers outside Abu Dhabi Emirate. Till date, it has its offices in Ras al Khaimah, Zayed City, Fujeirah and Sharjah.
There are in total seven directors in the ADSEB who are nominated by the Amiri Decree. The board members are known to hold office for a 3 year term. It was under the Amiri Decree No. (8) of 2000 that the initial board of directors had been constituted.