Taking stock (Gulf Business)

The stampede following the long awaited launch of the Dubai Financial Markets did not materialized. The building blocks are there (transparency, regulation etc) but the volume is paper thin (approx US$ 1 m daily). Brokers hope that launch of sister exchange, Abu Dhabi Securities Market, which will house Etisalat, the telecom giant which accounts for 50% of the total UAE market capitalization, will provide the catalyst in lifting volume on the DFM. Nevertheless, high liquidity and banks eagerness to lend is a major obstacle in the investor diversification in sourcing finance such as going to the equity market.