Daman Investments CEO Shehab Gargash has dismissed the Nasdaq Dubai as a “failed experiment”, as the bourse prepares to integrate fully with the Dubai Financial Market (DFM).
“The NASDAQ Dubai was a failed experiment. I would have liked to see it succeed and we invested effort in helping it to succeed, but that didn’t happen,” Gargash, who is also a director of the Dubai Chamber of Commerce and Industry, told Arabian Business in an interview.
The Nasdaq Dubai, which is down 3.5 percent year-to-date but 46 percent since September 2008, announced in July that trading of its listed securities would be routed through the DFM trading platform.
The stock exchange, formerly the Dubai International Financial Exchange, never attracted the dealflow that was anticipated on its launch in September 2005. It was forced to reduce trading hours and by the time its integration with the DFM was announced there were just 16 equity listings on the Nasdaq Dubai - only one of which, DP World, traded on a daily basis.
Gargash added that integrating the two platforms was “the right move”.
“The DFM has proven that you can create a very liquid market, notwithstanding the stock market crisis, notwithstanding the quality of some of the practices that are seen, and notwithstanding the mindset of some of the companies that are listed,” he said.
“In only ten years we have gone from no market to a market that is considered one of the premium markets in the Middle East. That has been a successful experiment and one that needs to be built upon.”
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