Dubai creates bourse holding firm

The Dubai government said on Monday it would set up a holding company for two government-controlled stock exchanges as it seeks to expand in the region and beyond.The holding company, named Borse Dubai, which is pending regulatory authority, pools the Dubai Financial Market (DFM) and the Dubai International Financial Exchange (DIFX).Chairman of Borse Dubai and DFM chairman Essa Kazim said the company is intended to be a facilitator, allowing DIFX and DFM to explore joint opportunities for development of capital markets in the region and in the broader context of global exchanges.

DIFX governor Omar bin Sulaiman said the move comes as part of the Dubai Strategic Plan 2015 which seeks to position the Emirate as a “global hub of a diversified economy.” “A mature and well structured financial industry is instrumental for sustainable and rapid growth of such an economy” he said.The DIFC is keen to take a stake in an Asian stock exchange, bin Sulaiman said in April, adding that two Asian investors had approached the centre about taking a stake in the DIFX, which was formed in 2005.Razi-ur-Rahman Khan, chairman of the Securities and Exchange Commission of Pakistan, said last month that a Dubai company had shown interest in buying a minority stake in Pakistan's main bourse.DIFX and DFM will continue to be regulated by the Dubai Financial Services Authority and the Emirates Securities and Commodities Authority respectively. Source