Regulator gives approval to planned UAE stock exchange merger

17/02/2011 - Dubai Investment News
Regulator gives approval to planned UAE stock exchange merger

The head of the Securities and Commodities Authority (SCA) has lent his support to a planned merger between the Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM).

Over the past couple of weeks, executives from both Middle East bourses have held a series of meetings over a deal which would see them unite to invest in shared infrastructure and technology.

While a final agreement could be some way off, the chief executive of the SCA, Abdullah Al Turaifi has revealed that the regulatory authorities within the UAE would not stand in the way of such a move, particularly if both parties maintained their separate corporate identities following any deal.

"They have different companies, different boards, different strategies," he said.

"If they think it is good for the UAE, or good for them as companies, we will support it."

This comes in the same week that the SCA unveiled new plans geared towards making the UAE more attractive to foreign investors by tackling the issue of short-selling.

Posted by Neil King