Dubai Stock Market


With the continuous conquest of the becoming one of the famous cities in the world, the Dubai stock market has been soaring up high. The Dubai Financial Market, the stock exchange venue is located in the country’s capital. Founded on March 26, 2000, more than forty companies are now listed on the Dubai stock exchange. The companies comprise of UAE companies, companies from Gulf countries with dual listings, and companies that allow stock sharing to foreigners.

Many companies that shared prices and traded had been experiencing significant increases in terms of volume during 2004 and 2005. On the other hand, DFM dropped at least 60% in the share values during the few months of 2006. Other Gulf stock markets also experienced the same fate.

Aside from the DFM, there are two more stock exchanges in the United Arab Emirates. The Abu Dhabi Securities Market or ADSM lists mostly local companies while the Dubai International Financial Exchange or DIFX was recently opened to trade international stocks.

Dubai financial Market is not only an independent corporate body but also considered being as a public institution. Issued by public shareholding companies, this Dubai stock market has been operating as a secondary market for trading of securities.

For daily operations of trading, the DFM has two integrated systems. First is the Clearance and Settlement System. It is the universal automated system that is used in conducting the business of settlement and clearance on a daily basis. Another automated system that is being used by brokers for their everyday operations is called the Trading System. In this system, the brokers and investors can monitor their buy and sell orders. These two systems are linked electronically and immediate transfer of securities is simultaneously modifying the securities holders’ register in the Clearance and Settlement System.

If one is eager to start trading in the Dubai stock market, here are some basic requirements that should be done. First, visit the Investor Service and fill out the Investor Number Form in order to obtain an Investor Number from DFM. Second, fill out the Account Opening Form in opening an account with a DFM broker.

There are other documents that should be appended. There is certain requirement for certain category for UAE nationals and non-UAE nationals.

When buying or selling orders, one should go straight to a broker in person and fill out a buy or sell order form. This can also be done by phone, fax, and email upon the agreement of the investor and the broker. With the help of the clearance system, the client’s request and securities’ transfer takes place automatically upon the brokers processing of orders. All agreements between the broker and the investor or client are in accordance to the Dubai stock Market rules and regulations. The payments to the investor are processed within 24 hours upon receiving the payment order.

Like any other state inn the world, the government is exerting its effort in making Dubai financial Market as an investment haven to all investors and brokers for local and international investment and trading. In a few months or years time, Dubai stock market will be the most successful stock market in the Gulf region and in the world.