A REPORT ON STOCK EXCHANGE &DUBAI FINANCIAL

MARKET IN UAE

STRATEGIC FINANCIAL MANAGEMENT ASSIGNMENT

 Abstract

This article's objective is to provide an understanding of the UAE Stock Exchange

industry. This study will evaluate the risks, rewards, policy, and business
implications of a prospective merger between Dubai Financial Markets-Nasdaq-
Dubai and Abu Dhabi Securities Exchange. The article also uses data from the
Dubai Financial Market Stock Exchange, the Abu Dhabi Stock Exchange, and the
FTSE NASDAQ Dubai UAE 20 index to investigate financial market integration.
Companies that are efficiently functioning (liquid) help shareholders to really get
their requests filled as fast and inexpensively as feasible. This global financial
crisis had also resulted in an “implosion” in international equity markets, which is
very well known.
 Introduction

A stock market is a marketplace where investors may buy and sell stocks (or
shares) in a company. Companies divide their shares and trade them, allowing the
public to purchase and sell them. Because they own a piece of the firm, the
investors benefit a set amount if the firm does well. It is suggested that if you want
to make a substantial profit, you should invest for at least more than 5 years.
Companies must list themselves on a stock exchange in order for investors to
acquire their shares. The majority of large corporations will have their shares
traded on a stock market. Increasing worldwide capital investment, near-record
decreasing interest rates which have prompted traders to draw to invest, and a
positive feeling engendered by strong economic development are all contributing
to stock dynamism.

The Stock Exchange of the United Arab Emirates is quite comparable to any other
stock exchange in the globe. The stock exchange institutions in the UAE list
excellently corporations such as Emirates NBD, Oman Insurance Company, Emaar
Properties, and 200 more public limited businesses. International enterprises can
register and offer their equities accessible to the public through the stock market
locations in the UAE. Although speculators' frenzy purchasing this year would
have rendered most shares pricey, economists think a robust economy and robust
money is flowing would most likely keep the UAE's share prices from falling.
Although the current economic recession has severely impacted the economic
systems of many nations, the UAE financial markets also gradually revamped to
trade globally with several other financial markets, like the DUBAI NASDAQ
exchange market, because the UAE seems to have a federal system of government
as well as obeys an accessible economic strategy. The amount of
interconnectedness among UAE stock markets and global stock markets is among
the study's main objectives. Global financial economic globalization has lately
been a hot topic, as well as the UAE has extended its financial sector to foreign
capital in order to boost the UAE's two rate of economic growth. Dubai Financial
Market as well as Abu Dhabi Securities Exchange possess official trading
platforms with interconnected trading desks. These trades are regulated by the
Emirates Securities and Commodities Authority.

Centers of Stock Exchange in UAE:

There are three of them and they are as follows:

Dubai Financial Market (DFM):

The Dubai Financial Market (DFM) is indeed the UAE's initial stock market. This
was founded in the year 2000. There are almost 170 businesses registered under
them. Despite occasional revenue variations in the DFM sector, the year 2007 saw
a hefty revenue. This was estimated to be 1439.6 million. Organizations that
violate sharia regulations would not be accepted by DFM since it runs on Islamic
values.
DFM has been engaged upon UAE legislation administered by the Securities and
Commodities Authority from 2010. (SCA). Accountability, reliability, secrecy,
integrity, and creativity are five basic ideals that it operates upon.

DFM has the following listed firms:

 Gulf Finance House
 Ajman Bank
 SHUAA Capital
 Commercial bank of Dubai
 Emaar Properties
 Dubai Islamic Bank
 DU
 Emirates NBD
 Dubai Investments
 Oman Insurance Company
 Mashreq bank
 Air Arabia

NASDAQ Dubai:

NASDAQ Dubai is a stock exchange that exchanges equities of both domestic and
foreign firms. DFM owns the bulk of the equities on the NASDAQ Dubai
exchange. It may be found just at Dubai International Financial Center (DIFC)
(DIFC). It lists the highest-valued corporations for trading.

The following are among the NASDAQ-listed companies:

 Real Estate Investment Trust(REIT)
 Bank of London and the Middle East(BLME)

Abu Dhabi Securities Exchange (ADX):

ADX has been founded in November of 2000. This exchanges equities of firms
based in the United Arab Emirates. Ras Al Khaimah, Al Ain, Fujairah, as well as
Sharjah are among its locations. It exchanges corporations from just a wide range
of industries, including banking, insurance, services, manufacturing, and hotels.
Accountability, honesty, effectiveness, and customer-centricity are among the
qualities it promotes.

ADX-registered businesses include:

 ADCB
 Gulf Pharmaceutical Industries
 ADIB
 Qatar Telecommunications
 FAB
 Etisalat
 Noor Takaful
 Finance House
 Union National Bank
 Literature Review

Stock markets are now establishing coalitions or merging more frequently in recent
decades. DFM is among the UAE's 3 stock markets. The Dubai Financial Market
(DFM) has been the most active financial services marketplace inside the UAE,
with a high level of competitiveness. The DFM facilitates electronic commerce and
therefore is significant proportion by the nation exchange administrator Borse
Dubai that decided to sell DFM's competitor Dubai International Financial
Exchange, which has since been rebranded NASDAQ Dubai. The Abu Dhabi
Securities Exchange (ADX) likewise primarily listings UAE firms, whereas
NASDAQ Dubai originally established to exchange foreign equities. NASDAQ
Dubai, and from another hand, is overseen via an approved inspector known as
either the Dubai Financial Services Authority (DFSA), which is analogous to both
the Securities and Exchange Commission throughout the United States. NASDAQ
Dubai, notably DFM as well as ADX, is indeed an electronic version without any
stock exchange. It really is situated in the Dubai International Financial Centre
(DIFC). The Dubai Financial Market (DFM) makes every effort to offer but also
broadcast authority and responsibility information and data; nevertheless, it cannot
be assured to just be reliable or precise, but it is provided solely for informational
reasons. DFM will not be held liable for any damage, inaccuracy, or latency in the
data and material it publishes. As a result, DFM would not be responsible for just
about any complaint or damage whatsoever arising actively or passively from
using DFM's information and data and some of its articles.

The Securities and Commodities Authority oversees as well as regulates all DFM
and ADX (SCA). The SCA does have the power to establish regulations but also
criteria that DFM as well as ADX must follow.
Both UAE as well as other Gulf bourses were all on track to have its largest total
record in August 2020, boosted by development on Covid-19 vaccinations,
lessening US-China tensions, as well as a rise in fuel price.
Upon strength of central bank backing, analysts predict stock markets to resume
their rising trajectory in the coming weeks.
For forecasting share prices, a variety of strategies and procedures are being
utilized, ranging from old methodologies to sophisticated AI systems. Hellström
and Holmström provide the patterns idea that is one of the classic strategies for
forecasting returns of specific stocks on the Swedish stock market (2000).
According to the Khaleej Times, after previous year's domestic stock market crash,
DFM's corporation 2009 first-half revenue declined by two-thirds year-on-year, as
well as its second-quarter earnings fell by about 50% year-on-year. “Dubai had
managed to create a corporation climate that meets investment demands and
expectations, also including movable type from earnings and corporation taxes,
elevated infrastructure, as well as a thriving property market with family-oriented
advantages. Using our advanced capabilities, skilled personnel, and close
relationships to our market players, we highlight the effective method of Dubai
Financial Market throughout developing superior achievements, sustaining
business processes, and controlling risk in glow of the evolving Covid-19
pandemic in todays 2020 Annual Report.
 Data Analysis and Interpretation

Inside this setting of both the UAE, the research used an empirical analysis
employing innovative methodologies to test for very well ideas in finances,
including such financial sector convergence as well as the opportunity cost. An
exploratory analysis of the connection among factors to examine if the Abu Dhabi
Securities Exchange and also the Dubai Financial Market are integrated or
segmented. So because variables are not normally dispersed, asymmetrical
causality tests along with aggressive ramping methods were used to calculate the
economic interconnectedness between both the UAE financial society and the new
global financial market.

 Throughout the longer term, all financial markets of the UAE remain
interlinked.
 With Dubai marketplaces through Abu Dhabi marketplaces, there's
really short- and long-term consistency.
 The FTSE NASDAQ Dubai UAE 20 index plays a significant role in
propelling the Dubai as well as Abu Dhabi markets.
 This persistent element of both the three stock prices is described by
two common elements.

GCC stock markets:

The development with Covid-19 vaccinations, the lessening of US-China

hostilities, as well as a return in oil prices propelled both UAE as well as other
Gulf bond markets to its highest time brought in August in 2020.
Upon on strength of central bank backing, analysts forecasted that the stocks would
proceed to increase over the coming weeks.

The UAE's share prices were projected to see a spike in the number for initial
announcement offers (IPOs) light of developments in corporate regulations.
As per Ernst & Young, another of the world’s largest multinational organizations,
many new programs were introduced throughout the UAE in 2020 with both the
goal of boosting IPO activities throughout the coming years. The Dubai Finance
Sector provides immediate access to some of the most up-to-date yet accurate data
via a variety of sources at various levels. DFM provides the facility individually or
via a few of its major suppliers. The International Monetary Fund predicts that
perhaps the country's GDP will increase by 1.3 percent in 2021, after contracting
by 6.6 percent in 2020.
Property investment as well as financial stocks raised Dubai's index by 0.8 percent.

The benchmark in Abu Dhabi went up 0.4 percent, with First Abu Dhabi Bank up
0.8 percent as well as telecommunications giant Etisalat up 0.6 percent.

The share price in Saudi Arabia went lower to 0.6 percent. The greatest loss came
in Saudi Industrial Investment, which fell 4% when shares went retired.

Saudi Basic Industries lost 0.6 percent of its value.

Emirates NBD rose 1.5 percent, whereas Emaar Properties rose 1.1 percent to lead
the construction stocks higher.

During 2021, Dubai seems to be anticipated to increase by 4%.

2020 Highlights:
 Conclusion:

The findings show that whereas Arab foreign investment has a detrimental
impact on financial and social efficiency, non-Arab foreign investment has a
beneficial impact. Conversely, the UAE's require businesses must keep in
mind whether their actions have such a direct impact on oil markets. They
have an effect mostly on UAE economy as well as equity markets because of
their influence on fuel prices. Furthermore, our findings should be of interest
to regulatory authorities and corporate leaders. The Dubai Financial Market
(DFM) is dedicated to providing shareholders and economic actors with
cutting-edge products and techniques in order to perform stock brokers,
settlement, resolution, and safekeeping in such an effective, accessible, and
dynamic atmosphere.
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