DFM, Nasdaq Dubai merger a 'possibility'

A merger between Dubai Financial Market (DFM) and Nasdaq Dubai can be "possibly looked at", said a senior official.

Borse Dubai, the holding company of both exchanges, is already planning to integrate their trading and clearing systems. But the full merger would need to address regulatory issues first.

"Under a consolidated approach – because Borse Dubai owns both DFM and Nasdaq Dubai – the merger can be looked into," Abdulla Al Awar, CEO, DIFC Authority, told Emirates Business.

"There isn't, to the best of my knowledge, any official talks. But one thing is for sure, when we develop strategies we will be in close contact with Borse Dubai, Nasdaq Dubai and our regulators, Dubai Financial Services Auth-ority, to make sure that the proposition of the UAE is a good one."

After the proposed consolidation of back-office operations, which will bring DFM and Nasdaq Dubai on to a single trading system, analysts have begun anticipating a merger of Borse Dubai's two exchanges.

"There are areas where we're working very closely together, where we could both benefit," Essa Kazim, Chairman of Borse Dubai and Executive Chairman of DFM, said earlier. Cross listings between the two exchanges could be a logical solution, he added.

Before the consolidation of Dubai's bourses, DIFC used to have a 100 per cent share in Dubai International Financial Exchange, now known as Nasdaq Dubai. Through its investment arm DIFC Investments, DIFC now owns 20 per cent stake in Borse Dubai with the remaining shares held by Investment Corporation of Dubai (60 per cent) and Dubai Holding unit Dubai Group (20 per cent).

Al Awar said: "Importantly, it is now difficult to create the infrastructure that Nasdaq Dubai has and that is its leading edge."

 

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