The regulator of the UAE capital markets will support the merger of the Abu Dhabi Securities Exchange and the Dubai Financial Market, according to Abdullah Al Turaifi, chief executive of the Securities and Commodities Authority (SCA).
The executives of the two bourses have been meeting to discuss if a merger would be good for the companies and the UAE. On balance, it should be.
Internationally, the companies that own stock markets have been merging to reduce costs and offer clients platforms with a greater range of listed stocks and financial products. These reasons apply to the UAE financial markets as well.
And because financial markets these days are little more than electronic trading platforms, investors in the markets in Dubai and Abu Dhabi should not experience any changes in the operation of the markets.
It will also be easier for the authorities to regulate a single market, which is important at a time when investors are demanding more effective governance of the financial markets.
