Dubai Government Launches 'Borse Dubai'Press Release 14 Aug 2007 08:56 am
DIFX and DFM join together to more fully explore capital markets development
The Dubai Government announced today that it will consolidate its holdings in Dubai Financial Market (DFM) and Dubai International Financial Exchange (DIFX) into a new holding company to be called Borse Dubai.
The Government’s move is in line with the Dubai Strategic Plan 2015, and demonstrates its commitment to further position Dubai as the leading capital market in the region.
His Excellency Dr. Omar Bin Sulaiman, Governor of the Dubai International Financial Centre (DIFC) stated that the strategic alignment of DFM and DIFX is in line with the objectives of the Dubai Strategic Plan 2015 and the vision of His Highness Sheikh Mohammad Bin Rashid Al Maktoum, UAE Prime Minister and Vice President, and Ruler of Dubai. Dr. Bin Sulaiman said:
“The Dubai 2015 plan positions our Emirate as a global business hub based upon a diversified economy. Naturally, a mature and well structured financial industry is instrumental for sustainable and rapid growth of such an economy. Borse Dubai is the answer and the right vehicle for this.”
Essa Kazim, DFM Chairman and the new Chairman of Borse Dubai, said of the alignment: “Both exchanges will share best practices while maintaining operational efficiency at international standards. Borse Dubai will boost confidence among issuers, investors, and intermediaries who will benefit from a presence in both exchanges, as well as a broader and more varied range of services."
Stating that DFM would continue its firm commitment to maximise value for its shareholders, Kazim said: "DFM's Board and management team will continue to drive DFM's business and execute the current growth strategies. Given the rapid transformation of capital markets around the world, it was the right time to jointly build on the synergistic opportunities provided by both exchanges and to create Borse Dubai as a platform for further growth."
DIFX and DFM will continue to be regulated by the Dubai Financial Services Authority (DFSA) and the Emirates Securities and Commodities Authority (ESCA) respectively. Borse Dubai will build on existing synergies between both exchanges, and create an improved exchange infrastructure to better serve all its stakeholders.
Soud Ba'alawy, Chairman and Board Member of DIFX, emphasised the new platform as a gateway to opportunities within the region as well as a bridge between East and West. He said: "DIFX, being a DIFC entity, is unique in the region. Its standards are comparable to those of leading international exchanges in New York, London and Hong Kong. Borse Dubai, based on DIFX's and DFM's strengths, will facilitate easier access for international and regional investors, providing for a potentially diverse investor base."
The creation of Borse Dubai is subject to approval from regulatory authorities.