DUBAI // The three bourses in the country are about to shrink down to two and soon there may be only one.
Essa Kazim, the chief executive of the Dubai Financial Market (DFM), said yesterday there had been talks about merging with the Abu Dhabi Securities Exchange (ADX), a move that analysts say could lead to a nationwide bourse. The DFM is already in the process of taking over NASDAQ Dubai in a Dh445.1 million deal and Mr Kazim told reporters he expected to seal that deal within a couple of weeks.
The idea of combining the Dubai and Abu Dhabi exchanges is one that has been rumoured before but the fact that talks have taken place has brokers buzzing.
Eyad Abdulnabi, the chief financial officer of Al Ramz Securities in Abu Dhabi, predicted it would be "very positive and healthy for markets".
Analysts say a single equities index would probably attract more listings and much-needed liquidity to the floor. Although it would arguably give a bigger boost to Abu Dhabi, said Hassan Awan, an associate at The National Investor in Abu Dhabi.
The daily trading average at the ADX is in the range of Dh630m over the past three years, while at the DFM it is Dh1.2 billion over the same period. Mr Awan said it would be good for ADX to have a more liquid partner.
Exchanges in the country have come under pressure to maintain profitability as income from commissions, the main source of revenue for the exchange operators, has slumped in the wake of the economic slowdown and worries on the debt restructuring of major conglomerates in Dubai.
The full-year profit for DFM, which also trades on the Dubai bourse as DFM Co, almost halved last year. The ADX is government-owned.
Mr Abdulnabi said brokers traded on both exchanges anyway, but had credit limits on each exchange that were not transferable. Combining the two would allow brokers to trade more actively without taking on additional leverage. It also simply would make life easier for investors, who prefer to be able to focus on a single exchange.
* additional reporting by Hadeel al Sayegh
skhan@thenational.ae
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How green is the expo nursery?
Some 400,000 shrubs and 13,000 trees in the on-site nursery
An additional 450,000 shrubs and 4,000 trees to be delivered in the months leading up to the expo
Ghaf, date palm, acacia arabica, acacia tortilis, vitex or sage, techoma and the salvadora are just some heat tolerant native plants in the nursery
Approximately 340 species of shrubs and trees selected for diverse landscape
The nursery team works exclusively with organic fertilisers and pesticides
All shrubs and trees supplied by Dubai Municipality
Most sourced from farms, nurseries across the country
Plants and trees are re-potted when they arrive at nursery to give them room to grow
Some mature trees are in open areas or planted within the expo site
Green waste is recycled as compost
Treated sewage effluent supplied by Dubai Municipality is used to meet the majority of the nursery’s irrigation needs
Construction workforce peaked at 40,000 workers
About 65,000 people have signed up to volunteer
Main themes of expo is ‘Connecting Minds, Creating the Future’ and three subthemes of opportunity, mobility and sustainability.
Expo 2020 Dubai to open in October 2020 and run for six months
Financial considerations before buying a property
Buyers should try to pay as much in cash as possible for a property, limiting the mortgage value to as little as they can afford. This means they not only pay less in interest but their monthly costs are also reduced. Ideally, the monthly mortgage payment should not exceed 20 per cent of the purchaser’s total household income, says Carol Glynn, founder of Conscious Finance Coaching.
“If it’s a rental property, plan for the property to have periods when it does not have a tenant. Ensure you have enough cash set aside to pay the mortgage and other costs during these periods, ideally at least six months,” she says.
Also, shop around for the best mortgage interest rate. Understand the terms and conditions, especially what happens after any introductory periods, Ms Glynn adds.
Using a good mortgage broker is worth the investment to obtain the best rate available for a buyer’s needs and circumstances. A good mortgage broker will help the buyer understand the terms and conditions of the mortgage and make the purchasing process efficient and easier.
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