The Dubai Financial Market (DFM) and Abu Dhabi Securities Market (ADSM) will not merge, the UAE’s minister of economy said today.
Speaking at a press conference in Abu Dhabi, HE Sheikha Lubna Al Qasimi said that the government is not looking at combining the two emirates’ stock markets, stating that “we are comfortable with it the way it is”.
Sheikha Lubna said the government has looked into merging the exchanges, but feels there is ample room in the UAE market for both to operate.
“I believe, when you look at where the companies are in the region, where [they] list and what they do, you see a good opportunity for the two exchanges to exist side by side,” she said.
The news comes as the ADSM is on an international roadshow to the UK and the US, in a bid to attract more foreign investors to trade on the exchange.
Dubai Financial Market did the same in London earlier this year, and will undertake similar trips to New York and the Far East later this year, a spokesman told ArabianBusiness.com.
Given that a merger has been ruled out, the bourses’ roadshows can be viewed as a signal of a growing competitive spirit between the two exchanges.
There have also been rumours over the last 12 months that the DFM could merge with the DIFX, the international exchange based in Dubai.
However, a source close to the DFM played down the rumours when contacted by ArabianBusiness.com.
“I can’t forsee it happening because the two entities have such different structures,” he said, referring to the stricter regulatory framework imposed by the DIFC, which houses the DIFX.
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