Listed firms told to open up

The Abu Dhabi Securities Exchange (ADX) has urged listed companies to open up to foreigners to support the country's drive to lure in capital and said plans to introduce Exchange Trade Funds (ETFs) could be launched in March.

ADX Deputy Chief Executive and Director of Operations, Rashed Al Baloushi, said 2009 would not be an easy year and called on investors to avoid rumours and speculation to ensure stability in the local market.

In an interview with Emirates Business, Baloushi said the UAE allows a 49 per cent ownership for foreigners and said he hoped all listed firms would abide by the rule and increase foreign shareholding.

Baloushi said ADX, one of the largest bourses in the Middle East, is still working on rules governing derivatives and revealed they could be introduced by the end of this year. But he stressed that ADX is exercising caution in the introduction of the instruments to ensure their success.

"If the global markets start to pick up again in the second half and the UAE markets follow suit. I expect the local market to gradually regain stability. I don't think there will be any collapses," said Baloushi.

He urged investors to look at the long-term and avoid to speculation and ignore rumors that may be spread in the markets.

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