Monday 3 January 2011

Complex market forces at play in UAE - The National

Any move to consolidate stock exchanges in the UAE would have significant repercussions in Gulf markets and around the world, and possibly spark the next wave of merger fever among global bourses.

Goldman Sachs, the US investment bank, is advising the Abu Dhabi Government on how to rationalise the three stock markets currently operating in the UAE. Although the bank is not talking in detail about its proposals, insiders believe it is likely at the very least to involve a merger between the Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM).

But, with a delicate web of relationships and cross-shareholdings between regional exchanges and the big global players in Europe and the US, Goldman Sachs is also likely to be thinking of the bigger strategic scene beyond the local set-up.

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