Dubai Financial Market

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Dubai Financial Market (DFM)


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The Dubai Financial Market is one of 3 stock exchanges in the UAE, and one of 2 stock exchanges in Dubai. The others are the Abu Dhabi Securities Market (ADSM) and the Dubai International Financial Exchange (DIFX).

There are about 60 companies listed (as of December 2007) on the Dubai Financial Market (DFM) which started operations in March 2000. Most of these companies are UAE based with a few stocks being traded from other Gulf companies (eg Arab Insurance Group from Bahrain, Agility Logistics from Kuwait) who have dual listings. Foreigners foreigners are allowed to own up to 49% of publicly listed companies on the Dubai Financial Market, however it is up to each company to determine what proportion they are prepared to sell to foreigners. Some companies allow the maximum 49%, some allow a smaller percentage, and some allow no foreign ownership or only to citizens of other GCC countries.

During 2004 and 2005, there were significant increases in the volume of shares traded and the share prices of many companies. However, towards the end of 2005 and throughout 2006, there was decrease of over 50% on DFM and 30% on ADSM with similar bloodshed throughout the other GCC stockmarkets. During 2007 the UAE and Gulf markets started to recover hesitantly, with a bit of a surge towards the end of the year, but they're a long way from the boom times of 2004 and 2005.

Of the 3 stock exchanges in the UAE, the DFM and ADSM list mostly UAE companies, and the regulating authority is the Emirates Securities and Commodities Authority (ESCA). The DIFX opened in the Dubai International Financial Center (DIFC) in 2005 for trading of international stocks, and they are regulated by the Dubai Financial Services Authority (DFSA).

For research and analysis in English, information is sparse but improving as the international investing community looks at Middle East stocks in greater depth. EFG-Hermes (Egypt) and Shuaa Capital (UAE) produce research reports on various companies. Most brokers with online trading have some form of newsfeed, and some produce their own reports. International organisations like HSBC, Goldman-Sachs, Morgan Stanley started to produce reports on UAE companies during 2007. ShareWadi.com has summary information and a beginners guide to buying shares in the UAE. DubaiShareTalk.com is a Dubai based stock discussion forum in English.

This information last updated Wednesday 20-Feb-2008

Related websites - External Links (open in new window)

www.dfm.ae DFM website - Dubai Financial Market
www.dubaisharetalk.com - Dubai Share Talk - discussion and analysis of UAE stocks
www.sharewadi.com - Share Wadi - analysis and information about UAE stocks
www.adsm.ae - ADSM website - Abu Dhabi Securities Market website
www.sca.ae - ESCA website - Emirates Securities and Commodities Authority (UAE market regulator)
www.difx.ae - DIFX - Dubai International Financial Exchange
www.dfsa.ae - DFSA - Dubai Financial Services Authority
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www.dubaifaqs.com

Dubai Financial Market (DFM)

This information last updated Wednesday 20-Feb-2008

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