The Strategist

Market value of Dubai stock exchange operator doubles in a fortnight

11/15/2021 - 09:29

Shares in Dubai's stock exchange operator have more than doubled in a fortnight. So far, the bourse is losing competition to the Abu Dhabi-based exchange, but the new management is actively working to gain investors' attention, Bloomberg noted.

The market value of Dubai Financial Market, the operator of the Dubai Stock Exchange, has doubled since the beginning of November, in just two weeks, Bloomberg reported. The company's capitalisation rose to around AED 17 billion ($4.6 billion). On Saturday, November 13, the stock market operator's shares gained as much as 10%. Since November 1, the stock has risen 107%, the agency said.

The agency attributed the rapid rise in the bourse operator's value to the actions of its new chief executive, who decided to compete with the Riyadh and Abu Dhabi bourses. They are receiving listing bids worth billions of dollars, while the Dubai bourse has seen just one listing since 2017, with several delistings, Bloomberg reported. Dubai used to be the leading exchange in the Arab Emirates in terms of trading volume, but it is now second to the Abu Dhabi exchange, the agency added.

In November, Dubai merged the departments of tourism and economy. One of the objectives of the new structure is to attract private and family-owned businesses to sell shares on the Dubai Stock Exchange, Bloomberg reported on November 7. In addition, the emirate has changed the board of directors of the bourse and planned offering of the state-owned enterprise DEWA, which could become the largest for the Dubai bourse at a valuation of $25 billion.