UAE equities investors exchanged nearly $71 billion (Dh261bn) worth of shares in the first nine months of 2007 to turn the Gulf country into the third busiest bourse in the Arab world, according to official figures.
Saudi Arabia remained by far the largest stock market in the Middle East, with turnover peaking at around $533bn (Dh1.95bn) in the first nine months, nearly 67 per cent of the total Arab share value during that period, showed the figures by the Abu Dhabi-based Arab Monetary Fund (AMF).
In its latest quarterly report on 15 official Arab bourses, the AMF put their total share turnover at $794bn (Dh2.9bn) during the first nine months of this year. In the UAE, Dubai accounted for nearly two thirds of the country’s total share dealing, with a turnover of around $49bn (Dh180bn) during the first three quarters. Abu Dhabi’s turnover was put at nearly $22bn (Dh80.7bn).
Dealers attributed the surge in the UAE’s bourses to the creation of official floors, the opening up of some shares to foreigners, widespread speculation, the floating of shares by several companies and the establishment of new ventures.
Other factors included higher yield from shares compared to interest rates, persistent turmoil in foreign markets, and narrowing tendency for long-term investment by UAE stocks dealers.
$71bn UAE shares traded in nine months