Dubai Financial Market

Dubai Financial Market

Name

Affiliation

Table of Contents

TOC o “1-3” h z u HYPERLINK l “_Toc418112016” Introduction PAGEREF _Toc418112016 h 2

HYPERLINK l “_Toc418112017” Missions and objectives PAGEREF _Toc418112017 h 2

HYPERLINK l “_Toc418112018” Activities PAGEREF _Toc418112018 h 3

HYPERLINK l “_Toc418112019” Services/products PAGEREF _Toc418112019 h 4

HYPERLINK l “_Toc418112020” Operations PAGEREF _Toc418112020 h 5

HYPERLINK l “_Toc418112021” Rules and regulations PAGEREF _Toc418112021 h 6

HYPERLINK l “_Toc418112022” Benefits and Usage PAGEREF _Toc418112022 h 6

HYPERLINK l “_Toc418112023” References PAGEREF _Toc418112023 h 8

Introduction

Dubai Financial Market was created as an open organization having its own particular free corporate body by a Resolution from the Ministry of Economy No 14 of 2000. DFM is working as an auxiliary business sector for exchanging of securities issued by open business entities, securities issued by the Federal Government or any of the Local Governments and open establishments in the nation, units of speculation trusts and whatever other financial instruments, nearby or remote, which are acknowledged by the Market (Assaleh, El-Baz & Al-Salkhadi, 2011). The Market started operations on 26th March 2000. As chose by the Executive Council Decree on 27th December 2005, DFM is situated up as a Public Joint Stock Company in the UAE with paid up capital of AED 8 Billion apportioned more than 8 Billion shares, with a standard estimation of AED 1 every offer, and the twenty percent (20%) of DFM shares be offered for open membership. This IPO, the first of its kind in the area, was profoundly oversubscribed and created more than AED 201 billion (Jeon, Oh & Yang, 2006).

The Dubai Financial Market is the first posting of a stock trade in the Middle East and consequently, through this offer the Government of Dubai is a pioneer in the field by driving the route for the privatization of government elements in the locale (Jeon, Oh & Yang, 2006).

Missions and objectivesTo furnish partners with inventive services in directing exchanging, clearing, settlement and store of securities, in a proficient, straightforward and fluid environment. The Company’s main goal is to give speculators, recorded firms, representatives and different partners with a reasonable, effective, fluid and straightforward commercial center for the posting and exchanging of securities. Consequently, the Company’s objective is to make DFM an interesting destination for neighborhood and global speculation, situating it as the business of decision through the procurement of remarkable services and a vigorous and dependable exchanging environment (Jeon, Oh & Yang, 2006).

To attain to this mission and objectives, DFM expects to:

Develop and further mechanize its work space

Introduce and market DFM to all speculators and go-betweens; provincially, territorially and universally

Attract new postings

Achieve the most abnormal amount conceivable of partner fulfillment

Create a perfect exchanging commercial center

Provide remarkable services

ActivitiesDFM’s mission has prompted the formation of a reasonable, effective, fluid and straightforward commercial center that gives decisions through the best usage of accessible assets keeping in mind the end goal to serve all partners (Jeon, Oh & Yang, 2006).

The Company’s center exercises are:

Providing general society with chances to put resources into securities in a way that better serves the national economy.

Regulating the procedure of exchanging securities in a way that guarantees speculator security from uncalled for and inappropriate practices.

Achieving the most abnormal amounts of liquidity conceivable in view of reasonable and fair exchanging practices.

Organizing the exchange of securities proprietorship through the Clearing, Depository and Settlement Department, which works an electronic framework guaranteeing effectiveness and convenience of exchanges.

Implementing principles of expert lead and order for borkers to keep up an abnormal state of uprightness, and in addition furnishing them with preparing.

Collecting information and measurements about securities and issuing reports in light of this data.

Services/productsBefore getting to the monetary emergency it is critical to know the structure of the Dubai’s economy which is a standout amongst the most interesting and uncommon on the planet. It is partitioned into free zones setup by the legislature of Dubai. The zones are industry particular with Jebel Ali free zone being the quickest developing on the planet (Jeon, Oh & Yang, 2006). The Jebel Ali free zone offers an arrangement of items and services, for example, prepared to utilize workplaces, Business focuses, and production lines, Warehouses, base prepared plots and so forth. Jebel Ali free zone usually alluded to as Jafza is a piece of Dubai based; a state claimed Economic Zones World. It is one of the world’s greatest engineers of Economic Zones, Logistics and Research and advancement driven Industrial Parks. The primary free zones of Dubai are Jebel Ali free zone, Dubai Internet City, Dubai Media City, and Dubai Maritime City which are in view of the commercial enterprises they are connected with.

Individuals have false misinterpretation about Dubai’s economy they accept that its principally determined by oil and gas despite the fact that the oil area contains under 6% economy of Dubai that was fundamentally subject to oil as a fundamental wellspring of income previously (Jeon, Oh & Yang, 2006). Dubai being a piece of the United Arab Emirates is required to be incredible maker of oil, petroleum and characteristic gas despite the fact that it is a decent maker however contrasted with different nations of the United Arab Emirates it delivers generally lesser amounts of oil. Dubai produces 240,000 barrels of oil every day and its incomes from regular gas constitute just 2% of the aggregate income that United Arab Emirates gets from common gas (Maghyereh & Awartani, 2012). In spite of the fact that truly Dubai’s economy was at first expand on the incomes created by its saves of oil and characteristic gas however with time its oil stores have lessened fundamentally as an aftereffect of a vast increment in the interest for oil and oil items around the globe and throughout the years and Dubai trading an awesome measure of oil to different nations it is normal that Dubai’s stores of oil will get depleted in the following 20 years thus it has focused on the tourism business to produce great incomes around then. (Maghyereh & Awartani, 2012)

From the actualities said above it can be learned that there has been a shift in Dubai’s economy from being singularly subject to oil to improvement of different divisions by utilizing the a lot of cash originating from the oil to advancement of different segments like tourism however it has been adhered gravely because of fall in costs of structures and as the majority of them were in light of advances Dubai formally declared that the greatest of its land organizations would not have the capacity to reimburse their obligations for a time of no less than six months prompting the financial emergency (Maghyereh & Awartani, 2012).

OperationsDubai Financial Market (DFM) today reported the posting of “Dubai Parks and Resorts”, as exchanging started on the organization’s shares under the exchanging image (DUBAIPARKS), which shows up on DFM screens, exchanging framework and productions inside the Consumer Staples and Discretionary Sector.

As the first organization from the tourism part to rundown on the DFM, Dubai Parks and Resorts further backings DFM’s vital target of pulling in new guarantors from quickly developing monetary areas, offering financial specialists the chance to advantage from the development of these segments (Maghyereh & Awartani, 2012). In addition, the effective posting of “Dubai Parks and Resorts” further reinforces the noticeable position of DFM as the most supported posting venue for driving neighborhood and local organizations and lifts the aggregate number of recorded organizations to 58.

Rules and regulationsDFM is controlled by the Emirates Securities and Commodities Authority (“ESCA”), which is the UAE government controller in charge of authorizing and overseeing all securities trades exchanging floors in the UAE. ESCA is additionally in charge of directing capital markets in the UAE.

DFM is authorized by ESCA to work a market (the change of status of DFM to an open business entity has been endorsed by Federal Law No. 25 of 2006). As being what is indicated, all DFM postings, exchanging, settlement and care rules must be reliable with and receive winning ESCA regulations

Benefits and UsageThe posting of the organization’s shares inside a couple of days of the IPO conclusion has been attained to with the backing of the DFM “eIPO” stage, specifically connected with accepting banks, empowering financial specialists to quickly subscribe online through diverse channels (Neaime, 2012). Web Banking, ATMs and iVESTOR card. In 2013, Dubai has pulled in 11 million guests with a development of 10.6% and their aggregate spending came to AED 48 billion (USD 13 billion) speaking to 10% of GDP. Dubai’s tourism spending is required to increment to AED 80 billion (USD 21.7 billion) by 2020 speaking to 15.4% of GDP while the aggregate number of guests is relied upon to achieve 20 million by that year. Truth be told, the development of tourism segment in Dubai won’t just advantage from inbound tourism additionally from the expanded movement of household tourism as the IMF anticipates that the UAE populace will expand 2.9% yearly amid the years from 2013 till 2019 coming to 10.7 million.”

The quickening pace of IPOs and postings on DFM in the course of recent weeks mirrors the sound basics of our economy’s different parts and speculators’ significant trust in the large scale monetary standpoint and the performance of organizations. Also, it underlies guarantors’ certainty towards DFM as a main and effective stage for organizations and speculators from the UAE and past, because of its sufficient framework, and world-class services (Neaime, 2012).

ReferencesAssaleh, K., El-Baz, H., & Al-Salkhadi, S. (2011). Predicting Stock Prices Using Polynomial Classifiers: The Case of Dubai Financial Market. Journal of Intelligent Learning Systems and Applications, 3(02), 82.

Jeon, J., Oh, Y., & Yang, D. Y. (2006). Financial market integration in East Asia: regional or global?. Asian Economic Papers, 5(1), 73-89.

Maghyereh, A., & Awartani, B. (2012). Return and volatility spillovers between Dubai financial market and Abu Dhabi Stock Exchange in the UAE. Applied Financial Economics, 22(10), 837-848.

Neaime, S. (2012). The global financial crisis, financial linkages and correlations in returns and volatilities in emerging MENA stock markets.Emerging Markets Review, 13(3), 268-282.

Squalli, J. (2006). A non-parametric assessment of weak-form efficiency in the UAE financial markets. Applied Financial Economics, 16(18), 1365-1373.