The Dubai Share Market is a proof of the affluence of the United Arab Emirates and its solid corporate base. The stock exchange of the Dubai Share Market was established on 26th of March 2000. There are more than 40 companies listed in the stock market among which most are from UAE while some others are from the Gulf countries as well.
The three stock exchanges in UAE are Dubai Financial Market, Abu Dhabi Securities Market and Dubai International Financial Exchange. The Dubai Share Market, operating as a public institution having its own corporate body, is a secondary market for share and bond trading. Functions of Dubai Share Market include creating a platform on the national level for investors carrying out share trading efficiently and transparently.
This channelizes the savings of the common man to the businessmen for the purpose of productive investment. The Dubai Share Market also takes measures to provide liquidity in the share market.
Confidence building measures among investors are also adopted in order to encourage them to boost up the market. The fully automatic trading system is entirely screen based. This enhances speed and efficiency.
Orders are bought and sold on a price-time priority basis in this order driven market system. The current and historical feeds of price, volume and other important factors.
The ESCA or the Emirates Securities and Commodities Authority controls all activities of the Dubai’s Share Market.
Within the short period of its existence, the Dubai Share Market has had its share of highs and lows. In 2004 and 2005 it had witnessed a boom in both the trade volume and prices. But this sudden spurt was short lived and as soon as 2006, the graph began to show a steady decline. The slide was as high as 60%. It was roughly during this time, end 2005, that trade was hampered by blackouts in Dubai Share Market. All deals were canceled and trade remained suspended. But the fact remains that the share market of Dubai is one of the most active in the Gulf.
Last Updated on : 26th June 2013