Dubai's stock exchange hopes to introduce regulated short-selling this year and real estate investment trusts (Reits) next year, as part of a 2021 strategy aimed at diversifying asset classes to elevate the bourse to developed market status, a bourse official said Sunday.
The Dubai Financial Market announced in January plans to introduce covered short-selling - the practice of selling borrowed shares in the hope of buying them back later at a lower price - in a few months, following in the foot-steps of Abu Dhabi Securities Exchange, which also has revealed plans to start short-selling services gradually.
“We are amending the rules and are in contact with (market regulator) the Securities and Commodities Authority (SCA), and once we are ready with the system we will start,” said Hassan Al Serkal, executive vice-president of the DFM.
“We are talking with the [regulator], which would like to have the services (introduced) in both markets (DFM and ADX).”
Short selling, while illegal across the Arabian Gulf (with the exception of Kuwait), has been practised by institutions throughout the region in the form of naked short-selling. Naked short selling, which has been blamed for regional stock market routs, is the practice of shorting the market without borrowing the security, or making sure it can be borrowed.
SCA introduced regulations enabling short selling in 2012 for licensed market makers, with other institutions requiring permission from the regulator and the relevant exchange.
A market maker is a broker and dealer that balances supply and demand for shares by matching buyers and sellers. It also stands ready to buy or sell shares when there are no public buy or sell orders, thus creating a market.
Covered short-selling or regulated short selling will be introduced in phases and the bourse is still ironing out the details, said Mr Al Serkal.
“Maybe we will start with institutional investors first,” he said.
“We may select certain companies. Maybe companies that have more trading may attract more interest form foreign institutional investors.”
Short selling is being introduced to help lift liquidity and to attract more foreign investors, who have asked for this service, he added.
The DFM is working on a number of initiatives to boost liquidity in the market, which has languished because of regional instability, anaemic investor confidence and lack of new entrants to the bourse.
The stock market introduced in 2014 secured lending and borrowing, a system whereby traders borrow shares they do not own or lend stocks they own, as a precursor to short-selling.
“We at the DFM are working on certain asset classes like derivatives, Reits, and these things in order to prepare the infrastructure, regulations and rules so that when the market is ready we introduce them,” said Mr Al Serkal.
To achieve its objective, the bourse plans to introduce the listing of Reits to the market by next year. The DFM's sister market Nasdaq Dubai has already two listed Reits, from ENBD and Emirates Reit.
“There is a potential for Reits,” he said. “There is appetite and we have held talks with them (companies that plan to float Reits.)”
As part of plans of energising liquidity in the market, the DFM recently granted licenses to Dubai-based investment bank Shuaa Capital and brokerage firm Al Ramz Capital to be market makers.
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Starring: Vijay, Sneha, Prashanth, Prabhu Deva, Mohan
Who has lived at The Bishops Avenue?
- George Sainsbury of the supermarket dynasty, sugar magnate William Park Lyle and actress Dame Gracie Fields were residents in the 1930s when the street was only known as ‘Millionaires’ Row’.
- Then came the international super rich, including the last king of Greece, Constantine II, the Sultan of Brunei and Indian steel magnate Lakshmi Mittal who was at one point ranked the third richest person in the world.
- Turkish tycoon Halis Torprak sold his mansion for £50m in 2008 after spending just two days there. The House of Saud sold 10 properties on the road in 2013 for almost £80m.
- Other residents have included Iraqi businessman Nemir Kirdar, singer Ariana Grande, holiday camp impresario Sir Billy Butlin, businessman Asil Nadir, Paul McCartney’s former wife Heather Mills.
Hunting park to luxury living
- Land was originally the Bishop of London's hunting park, hence the name
- The road was laid out in the mid 19th Century, meandering through woodland and farmland
- Its earliest houses at the turn of the 20th Century were substantial detached properties with extensive grounds
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Dubai works towards better air quality by 2021
Dubai is on a mission to record good air quality for 90 per cent of the year – up from 86 per cent annually today – by 2021.
The municipality plans to have seven mobile air-monitoring stations by 2020 to capture more accurate data in hourly and daily trends of pollution.
These will be on the Palm Jumeirah, Al Qusais, Muhaisnah, Rashidiyah, Al Wasl, Al Quoz and Dubai Investment Park.
“It will allow real-time responding for emergency cases,” said Khaldoon Al Daraji, first environment safety officer at the municipality.
“We’re in a good position except for the cases that are out of our hands, such as sandstorms.
“Sandstorms are our main concern because the UAE is just a receiver.
“The hotspots are Iran, Saudi Arabia and southern Iraq, but we’re working hard with the region to reduce the cycle of sandstorm generation.”
Mr Al Daraji said monitoring as it stood covered 47 per cent of Dubai.
There are 12 fixed stations in the emirate, but Dubai also receives information from monitors belonging to other entities.
“There are 25 stations in total,” Mr Al Daraji said.
“We added new technology and equipment used for the first time for the detection of heavy metals.
“A hundred parameters can be detected but we want to expand it to make sure that the data captured can allow a baseline study in some areas to ensure they are well positioned.”
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Breast cancer in men: the facts
1) Breast cancer is men is rare but can develop rapidly. It usually occurs in those over the ages of 60, but can occasionally affect younger men.
2) Symptoms can include a lump, discharge, swollen glands or a rash.
3) People with a history of cancer in the family can be more susceptible.
4) Treatments include surgery and chemotherapy but early diagnosis is the key.
5) Anyone concerned is urged to contact their doctor
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Favourite colour: Brown
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Trivia: Was the voice of three characters in the Emirati animation, Shaabiyat Al Cartoon
What is blockchain?
Blockchain is a form of distributed ledger technology, a digital system in which data is recorded across multiple places at the same time. Unlike traditional databases, DLTs have no central administrator or centralised data storage. They are transparent because the data is visible and, because they are automatically replicated and impossible to be tampered with, they are secure.
The main difference between blockchain and other forms of DLT is the way data is stored as ‘blocks’ – new transactions are added to the existing ‘chain’ of past transactions, hence the name ‘blockchain’. It is impossible to delete or modify information on the chain due to the replication of blocks across various locations.
Blockchain is mostly associated with cryptocurrency Bitcoin. Due to the inability to tamper with transactions, advocates say this makes the currency more secure and safer than traditional systems. It is maintained by a network of people referred to as ‘miners’, who receive rewards for solving complex mathematical equations that enable transactions to go through.
However, one of the major problems that has come to light has been the presence of illicit material buried in the Bitcoin blockchain, linking it to the dark web.
Other blockchain platforms can offer things like smart contracts, which are automatically implemented when specific conditions from all interested parties are reached, cutting the time involved and the risk of mistakes. Another use could be storing medical records, as patients can be confident their information cannot be changed. The technology can also be used in supply chains, voting and has the potential to used for storing property records.
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'Worse than a prison sentence'
Marie Byrne, a counsellor who volunteers at the UAE government's mental health crisis helpline, said the ordeal the crew had been through would take time to overcome.
“It was worse than a prison sentence, where at least someone can deal with a set amount of time incarcerated," she said.
“They were living in perpetual mystery as to how their futures would pan out, and what that would be.
“Because of coronavirus, the world is very different now to the one they left, that will also have an impact.
“It will not fully register until they are on dry land. Some have not seen their young children grow up while others will have to rebuild relationships.
“It will be a challenge mentally, and to find other work to support their families as they have been out of circulation for so long. Hopefully they will get the care they need when they get home.”
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Label: Parlophone/Atlantic
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Rating: 3/5
Rooney's club record
At Everton Appearances: 77; Goals: 17
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