A reduction of one third in commission costs has been granted to investors who deal shares on stock markets of the UAE, following a decision by the Emirates Securities and Commodities Authority (ESCA) board.
The board, which met yesterday in Abu Dhabi at a meeting chaired by the UAE’s Minister of Economy and Planning, Shaikha Lubna Al Qasimi, ratified a decision to reduce the commission payable by investors to the stock markets from 0.0015 to 0.0010 percent.
Abdullah S. Turifi, chief executive officer of the ESCA, told listeners at the meeting, "The Abu Dhabi Securities Market and the Dubai Financial Market had requested Esca to reduce the commission in the interests of investors and the ESCA board has decided to bring down the commission payable," according to <i>Gulf News</i>.
Turifi added that the move was “in the interest of the investors," while an ADSM official confirmed his statements, saying "This move is beneficial to investors as it reduces their cost of investments and it would also promote trading in the stock markets. The stock markets are government institutions and not profit making firms," he said.
Until now, investors paid a 0.00325 percent commission on any deal executed, with 0.00025 percent of the sum going to the ESCA, while the broker and the stock market gets 0.00150.
Under the new guidelines, the ESCA will receive only 0.0010 percent.