One-fourth of DFM market cap is held by government

The Dubai government accounts for more than one-fourth of the total market capitalisation of the Dubai Financial Market (DFM).

The total capitalisation of Dubai's official stock market is estimated at approximately Dh40 billion as of March 15, but the market value of government holdings in six companies alone amounts to more than Dh10.9 billion, which works out to more than 27 per cent of the capitalisation of the whole Dubai market.

According to the 'offering circular' for the Dh1.5 billion Dubai bond, published by the government recently, the Dubai government holds a 76.81 per cent stake in Emirates Bank International (EBI), which translates into a market value of about Dh6.080 billion.

Likewise, the government's 31.88 per cent stake in Emaar Properties works out to a market value of Dh1.782 billion according to the latest estimates.

The 14.24 per cent holding in National Bank of Dubai accounts for Dh1.493 billion, and the 30 per cent stake in Dubai Islamic Bank is valued at around Dh780 million. The government holds a 20 per cent stake in Commercial Bank of Dubai (Dh694 million) and 11.53 per cent in Dubai Investment Company (Dh91.5 million).

The other listed companies in which the Dubai government holds stakes are Union National Bank (UNB), which is listed on the Abu Dhabi Securities Market (ADSM) and the OTC-traded National Bank of Fujairah.

The 10 per cent holding in UNB accounts for a market capitalisation of about Dh415 million, but the stake of less than 10 per cent in NBF is worth Dh122 million according to current market value. DFM has 13 shares listed on it - five in banking and finance, three in insurance and five in the service sector.

Interestingly, the government holds stakes in all banks except Mashreqbank, in which the Al Ghurair family holds a big chunk - more than 80 per cent.

The Dubai government holds 100 per cent of non-listed companies like the Dubai Electricity and Water Authority (DEWA), Dubal, Emirates airline, Enoc, Dnata, Dubai Dry docks, Dubai World Trade Centre (DWTC) and Dubai Transport.