Dubai Share Market

Dubai Share Market reflects the financial health of the United Arab Emirates’ corporate world. The stock exchange of the Dubai Share Market is known as UAE. It was established on 26.03.2000. Upto June’2006, 40 companies were listed in this bourse. Among these companies most are from UAE but some are also from Gulf countries. It has a market capitalization of US$97,064,805,531.45. Dubai Financial Market is one of the three stock exchanges in UAE apart from Abu Dhabi Securities Market and Dubai International Financial Exchange.

Dubai Share Market has seen both highs and lows within a very short period of time. It has seen high times during 2004 and 2005 when there was a spurt in both volume traded and prices of the listed scrips. This unprecedented rise was not fundamentally strong and the bubble burst occurred during the end of the 2005 and continued its downfall till the first few months of 2006. During this time the market slid by 60%.

The Dubai Share Market was established as a public institution with its own corporate body. It basically works as a secondary market for share and bond trading.

Dubai Share Market functions with the objective of providing a national level platform to the investors for share trading which will in-turn serve the economy by channelizing the savings of the general public to the corporates for productive investment purposes.

It also tries to provide liquidity in the share market through the adoption of various measures and strategies. Dubai Financial Market believes in maintaining highest degree of integrity and latest risk management techniques for building investors’ confidence in the Share Market. Mission of the Dubai Share Market is to create an efficient, transparent and liquid share market which will serve all the stake holders along with optimum utilization of resources.

Dubai Share Market has a fully automatic, screen-based trading system where the trades can be executed and settled in a very transparent, fair, efficient and quick manner. This is a order driven market system which automatically matches buy and sell orders on a price-time priority basis. Trading system also has a facility of providing current and historical feeds of price, volume, etc for efficient trading.

All the activities of the Dubai Share Market along with all other exchanges of UAE are supervised and controlled by ESCA (Emirates Securities and Commodities Authority) which was established on 01.02.2000.

Dubai Share Market has to go a long way for attaining a global recognition and allure the FIIs for further growth. It also needs to be fundamentally strong for a prospective future.