Islamic Banking

Dubai Bourse to Float

Paul Das, 5 January 2006

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Twenty per cent of the Dubai stock exchange, the Dubai Financial Market, is to be sold via an initial public offering ordered under a decree...

Twenty per cent of the Dubai stock exchange, the Dubai Financial Market, is to be sold via an initial public offering ordered under a decree from Sheikh Mohammad Bin Rashid Al Maktoum, Crown Prince of the Gulf state. The IPO will be launched in the first quarter of this year.

The IPO will be the first privatisation of a Middle Eastern stock exchange, as all Arab stock markets are presently government owned. The decision will allow foreign companies and individuals to buy into the highly profitable exchange.

"Sheikh Mohammad's decision is a major step towards developing the Dubai and UAE stock markets and will push other markets in the region to do the same. This is the first privatisation project for Dubai. This step will be followed by other steps on the privatisation train," said Habib Al Mulla, chairman of the Dubai Financial Services Authority.

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