Dubai Financial Market
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| Type | |
|---|---|
| Location | Dubai, United Arab Emirates |
| Founded | March 26, 2000 |
| Key people | H.E. Essa Kazim (Chairman) |
| No. of listings | 178 |
| Market cap | US$ 89.18 billion (Mar. 2016) |
| Website | www |
The Dubai Financial Market (DFM) (Arabic: سوق دبي المالي) is a located in Dubai, United Arab Emirates. It was founded on March 26, 2000.
As of 2014[update], there are 67 companies listed on DFM. Most of them are UAE-based companies and a few others are dual listings for companies based in other MENA region countries. Foreign companies are from the following countries: Kuwait, Bahrain, Oman, and Sudan. Many companies allow foreigners to own their shares.
During 2004 and 2005, there were significant increases in the volume of shares traded and the share prices of many companies. However, towards the end of 2005 and through the first few months of 2006 the bubble burst and share values dropped by around 60% on DFM, along with similar decreases in most other Persian Gulf stock markets.
DFM is one of three stock exchanges in the UAE. Abu Dhabi Securities Exchange (ADX) also lists mostly UAE companies and NASDAQ Dubai was set up to trade international stocks.
DFM and ADX are both governed and regulated by the Securities and Commodities Authority (SCA). SCA has the authority to impose laws and standards in which DFM and ADX have to comply with. SCA’s role is to ensure that the laws are followed by the exchanges as well as to protect investors’, brokers’ and listed companies’ rights.
On the other hand, NASDAQ Dubai is governed to international standards by an independent regulator called the Dubai Financial Services Authority (DFSA), which is equivalent to the Securities and Exchange Commission in the U.S. Unlike DFM and ADX, NASDAQ Dubai, located in Dubai International Financial Centre (DIFC), is an electronic exchange with no trading floor.
DFM was a fully owned by Dubai government until November 2006 when it turned into a public through an IPO, which led to sell 20% of its shares to public and 80% were subscribed by Borse Dubai, which is owned by Dubai government. As a matter of fact, DFM’s IPO has been oversubscribed by 118 times.
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