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According to state news agency WAM, the emirate’s deputy ruler, Dubai aims to develop a 2 billion dirham ($545 million) market-maker fund to increase trading on its stock exchange and hopes to float 10 state-backed companies on the bourse.
The move is intended to make Dubai a more competitive market in comparison to major bourses in the region, such as Saudi Arabia and neighboring Abu Dhabi, which are witnessing larger listings and high liquidity.
A wave of de-listings and a lack of large initial public offers have put pressure on Dubai’s stock market, raising concerns about the sustainability of one of the Gulf’s major exchanges, which was founded two decades ago.
The latest statement increased Dubai Financial Market shares by more than 13% in early trade on Tuesday, the company’s highest intraday gain in almost 18 months.
The benchmark Dubai index gained 2.6 percent as well, the greatest percentage gain among Gulf bourses.
Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, who supervises the emirate’s stock markets, was also quoted as adding that Dubai, one of the United Arab Emirates’ seven emirates, has separately established a 1-billion-dirham fund to promote technology companies to float on the local exchange.
He stated that a commission supervising the growth of the stock market established a goal of doubling the size of the financial market to 3 trillion dirhams, and that 10 state and state-related enterprises would be listed on Dubai Financial Market.
Sheikh Maktoum also announced the establishment of a market supervision committee and specialised courts for capital markets in the emirate, which serves as the Gulf’s commercial and tourism hub.
Story by : Norvisi Mawunyegah