Nasdaq comes to Dubai

The Dubai International Financial Exchange has been relaunched as ‘Nasdaq Dubai’. Its opening hours have been extended and a new derivatives platform unveiled. Nasdaq OMX CEO Bob Greifeld explains exactly what the Nasdaq brand brings to the Gulf, and why the exchange model remains robust even in these turbulent times.

Nasdaq OMX CEO Bob Greifeld is a tricky man to pin down. Flanked by a ruthlessly efficient team of communications executives, hurtling from one meeting to another, in and out of presentations and on and off long-haul flights, he’s rarely in one place long enough to make eye contact, let alone sit down and talk.

Yet if last week was a typical week for Greifeld, then it was a monumental one for Nasdaq OMX and the Dubai International Financial Exchange (DIFX). The DIFX has rebranded its market as ‘Nasdaq Dubai’, while Nasdaq OMX, the world’s largest exchange company, last week listed its shares on the Gulf bourse.

Nasdaq Dubai also took the opportunity to launch its derivatives trading platform — the FTSE/DIFX UAE 20 equity index — and confirm Sunday opening, as well as extended hours from Monday Nov 24.

According to Greifeld, the rebranding was discussed long before Nasdaq OMX took a one-third slice of the DIFX from Borse Dubai back in February. Now it is a reality, and the CEO — also vice chairman of Nasdaq Dubai — is convinced that the move represents a forward step for both stakeholders.

“You need to have a balance between the local and the global, and Nasdaq Dubai represents that,” he says. “We expect global investment banks and global issuers to be involved in a meaningful way, but we also know that without the local support and a localised entity, you’re probably doomed to failure. We see a clear path to getting both the global and local aspects working, and moving on with it.”

Such is Nasdaq OMX’s confidence, that this is the first time the group has used its brand for an enterprise that it didn’t own completely. The group already delivers trading, exchange technology and public company services across six continents, and Greifeld is hoping that Nasdaq OMX’s global cachet — not to mention expertise — coupled with investor appetite in the Gulf, will prove a winning formula.

“The value of the ‘Nasdaq’ brand is immeasurable — if companies are looking to dual list or to primary list here [in Dubai], to list on one of the best-known global exchanges is a big draw,” says Greifeld.

“When you look at Nasdaq Dubai now, you have two brands that are synonymous with innovation,” he continues. “Nasdaq has been the innovator in the exchange space since its founding back in 1971, while Dubai has done incredible things. You put them together, and if you’re an interested company then it’s a very exciting option for you. It resonates in a very clear way, more so than the prior name did.”

Greifeld is hoping that the attraction will not be lost on the 29 Nasdaq-listed firms that came to Dubai for Nasdaq OMX’s first investor conference in the Middle East last week.

“We have 29 of our listed companies here in anticipation of moving much further along in their relationship with Dubai, and knowing that Nasdaq is putting its name to it, and obviously our expertise is of vital importance,” he says. “Our joint sales and support effort is able to reach out to 3900 listed companies and continue to communicate the value proposition of coming to Nasdaq Dubai.

“The relationship with Nasdaq Dubai is important to us and we think there’s great opportunity for us to bring listed companies from the US and Europe into this region and provide them the opportunity for them to raise capital,” he continues. “More importantly, is for investors in the Gulf region who want to have the ability to buy into interesting, exciting opportunities for companies domiciled outside the region, this will make it very easy for them to do that.”

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