Regional investors urged to exploit Arab World stock markets
Regional states should exploit opportunities presented by the stock exchanges in the Arab World, which have more than 1,500 listed companies with a total market capitalisation of around $1 trillion (Dh3.67trn), said the head of the UAE's Securities and Commodities Authority (SCA).
Abdullah Al Turaifi, Chief Executive of the SCA, and Secretary-General of the Union of Arab Securities Authorities (UASA), was speaking in Beirut at the Annual Arab Banking Conference 2009. It was inaugurated by Saad Al Hariri, the Lebanese Prime Minister, under the title "Pan-Arab Investment in the Light of a New Global Economic Order".
Al Turaifi said the UAE encouraged inter-Arab investment and spoke about the country's experience in the area. He also talked about the role of Arab capital markets in the transfer of funds, building of projects, support of investment, motivation of economies and contribution to sustainable development.
"Figures show there are close to 20 exchanges in Arab states. The market capitalisation of listed companies is around $1trn and the total number of listed companies top 1,500. These figures should remind officials to seriously think about how they can exploit them [exchanges] in the building of Arab economies and achieve integration," Al Turaifi said.
He underlined the importance of regulators in the commitment to the basics of safety, justice, good organisation, development, transparency, investor protection, disclosure and governance of companies.
Regulatory bodies, which play legislative, controlling and organisational roles, were umbrellas that protected markets, companies and investors from internal and external risks, he said.
In setting up regulators, governments aimed basically to regulate the securities sector and consolidate the investment climate in most Arab countries, Al Turaifi added.
The SCA's initiative in the UAE sought to build bridges among financial markets in Arab states to facilitate inter-Arab investment, end difficulties that face such investment, expand and diversify its base, he said.
It also aimed to achieve the highest levels of co-operation and co-ordination to protect the efficiency and safety of transactions in Arab securities markets and avoid negative practices.
Al Turaifi said regular meetings should be held among the UASA, the Arab Stock Exchanges Association, the Union of Arab Banks and other associations in order to efficiently co-ordinate the workings of Arab economies and markets.
There was a need for strong relations between the various components of capital markets and the banks to develop Arab financial markets, which could be an important pillar in inter-Arab investment, he added.
Keep up with the latest business news from the region with the Emirates Business 24|7 daily newsletter. To subscribe to the newsletter, please click here.