Clock ticking for Arab bourses to join international Federation

Published April 12th, 2012 - 01:25 GMT
A request was submitted to the World Federation of Exchanges (WFE) to obtain full membership
A request was submitted to the World Federation of Exchanges (WFE) to obtain full membership

Senior official from Muscat Securities Market (MSM) called upon the Arab stock exchanges to raise the level of coordination and cooperation between the Arab bourses, and help meet the challenges that arise due to the world economic crisis. 

Speaking at the Arab Federation of Exchanges (AFE) conference held yesterday, Ahmed Saleh Al Marhoon, director-general of MSM, addressing participation of the heads of Arab stock exchanges in presence of a number of officials and experts from international stock markets, said, “I request the secretary-general of the federation to put more efforts in the pursuit of this goal. 

We emphasise the need for the federation to create a database of all its members, as well as the publication of the journal including aspects of development and the statistical performance of Arab stock exchanges.” 

Abdullah bin Salim Al Salmi, chief executive of the Capital Market Authority (CMA), was present on the occasion. “It is time that stock exchanges of the Arab countries join the World Federation of Exchanges, (an international trade association of 54 publicly regulated stock, futures and options exchanges whose market operators are responsible for the functioning of key components in the financial world), as full members. Qatar Capital Market, Abu Dhabi Capital Market and Muscat Security Market have tried to join WFE as full members. 

“A request was submitted to the WFE to obtain full membership. A delegate from WFE visited these capital markets, to see if they are consistent with the standards in place. This visit resulted in submitting a final request to the WFE, where its board of directors will discuss the request at its meeting in October. 

“In case we get the full membership, the number of Arabic capital markets with membership to the WFE will increase to 7, as Egypt, Morocco, Jordan and Saudi Arabia have joined before,” added Ahmed Saleh Al Marhoon. 

Dr. Fadi Khalaf, secretary-general of the Union of Arab Stock Exchanges, in his speech said, “the year 2012 looks promising and it is time to seize of the opportunities that lie ahead of us.” 

Huseyn Erkan, former chief executive and chairman of Istanbul Stock Exchange, spoke about Istanbul Stock Exchange’s role in prospering the Turkish economy and the lessons Arab Stock Exchange can learn from the Turkish experience. He said that the Istanbul Stock Exchange that was set up 25 years ago, now has a stock market, bonds and bill market, foreign securities market and emerging securities market. He said Turkey has high initial public offering (IPO) potential. 

In 2011, there were 25 IPOs amounting to $826.5 million and 55 corporate bonds issuance amounting to $11 billion, he pointed out. 

© Muscat Media Group

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