Occasional irregularities in local markets are to be expected as companies become accustomed to tighter ethical standards, says the chief executive of the regulator.
Conflicts of interest among executives, breaches of minority shareholder rights and insider dealing are often cited as weaknesses in the UAE business culture.
"It will take time," said Abdullah al Turifi, the chief executive of the Emirates Securities and Commodities Authority (SCA). "You cannot prevent mistakes from happening, but you can decrease the size of the damage that comes from these issues. Corporate governance is still a new introduction for the UAE."
Mr al Turifi, speaking on the sidelines of the regulator's annual summit in Abu Dhabi, also said he anticipated up to five UAE companies would go public this year as market conditions improved.
The SCA, which was created 10 years ago, has been tightening its laws and regulations as markets declined after the financial crisis. Last month, Riad Kamal, the chief executive of Arabtec Holding, was banned from buying shares on UAE markets for six months for trading in Arabtec shares during a prohibited period, which many observers interpreted as a tightening of regulation. Mr al Turifi said the decision spoke for itself and declined to comment further.
A steady stream of negative catalysts has reduced confidence and liquidity on the country's exchanges since the onset of the property price fall at the end of 2008, pushing institutional and foreign investors to the sidelines.
The UAE's bourses have also underperformed their regional peers. Last year, Dubai's main index, the Dubai Financial Market, lost 12 per cent and the Abu Dhabi Securities Exchange fell 1.8 per cent. But the Qatari index, buoyed in part by Qatar's winning bid to host the FIFA 2022 World Cup and government investment, gained 24 per cent. Saudi Arabia, the Arab world's largest economy, rose 8.3 per cent.
Mr al Turifi said most of the problems could be attributed to the financial crisis and not problems unique to the UAE. "We hope the sluggish volumes do not last too long," he said. Other observers said the SCA would play a key role in reversing the trend. "One common problem that foreign investors tell us is that the level of transparency and protection for minority shareholders is very weak, which is a big drawback in their lack of confidence in the markets," said Khaled al Masri, the head of investment at Rasmala Brokerage in Dubai. "They still have a long way to go."
Market players have been calling for a merger of the country's local bourses in an effort to boost liquidity and as a precursor to a potential inclusion to MSCI's emerging market index.
Mr al Turifi said the SCA did not have a position on a proposed merger but acknowledged the bourses were exploring a range of potential changes. "Any decision that the two exchanges come to, we will welcome, whether it's a merger or a different type of structure where they can link together, such as the Euronext system," he said.
Mr al Turifi said he had not seen a Goldman Sachs report commissioned to study a potential merger.
At present, the UAE is classified as a frontier market, which institutional and foreign investors regard as more volatile and therefore less attractive as an investment destination.
"As with any maturing market, consolidation needs to take place, and in the UAE the question is whether or not there is enough room for three exchanges, two market regulators and the UAE Central Bank," said Andrew Tarbuck, a corporate partner at the Dubai law firm Latham & Watkins. Separately, Mr al Turifi said he expected up to five companies from the insurance and services sector to go public by the fourth quarter, as market conditions improve.
"The markets are ready for new listings, and we encourage them," he said.
halsayegh@thenational.ae
fhalime@thenational.ae
THE LIGHT
Director: Tom Tykwer
Starring: Tala Al Deen, Nicolette Krebitz, Lars Eidinger
Rating: 3/5
Our legal advisor
Ahmad El Sayed is Senior Associate at Charles Russell Speechlys, a law firm headquartered in London with offices in the UK, Europe, the Middle East and Hong Kong.
Experience: Commercial litigator who has assisted clients with overseas judgments before UAE courts. His specialties are cases related to banking, real estate, shareholder disputes, company liquidations and criminal matters as well as employment related litigation.
Education: Sagesse University, Beirut, Lebanon, in 2005.
Race card
6.30pm: Al Maktoum Challenge Round-3 Group 1 (PA) US$100,000 (Dirt) 2,000m
7.05pm: Meydan Classic Listed (TB) $175,000 (Turf) 1,600m
7.40pm: Handicap (TB) $135,000 (T) 2,000m
8.15pm: Handicap (TB) $135,000 (D) 1,600m
8.50pm: Nad Al Sheba Trophy Group 2 (TB) $300,000 (T) 2,810m
9.25pm: Curlin Stakes Listed (TB) $175,000 (D) 2,000m
10pm: Handicap (TB) $135,000 (T) 2,000m
10.35pm: Handicap (TB) $175,000 (T) 1,400m
The National selections
6.30pm: Shahm, 7.05pm: Well Of Wisdom, 7.40pm: Lucius Tiberius, 8.15pm: Captain Von Trapp, 8.50pm: Secret Advisor, 9.25pm: George Villiers, 10pm: American Graffiti, 10.35pm: On The Warpath
The%20specs
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Killing of Qassem Suleimani
Sholto Byrnes on Myanmar politics
As it stands in Pool A
1. Japan - Played 3, Won 3, Points 14
2. Ireland - Played 3, Won 2, Lost 1, Points 11
3. Scotland - Played 2, Won 1, Lost 1, Points 5
Remaining fixtures
Scotland v Russia – Wednesday, 11.15am
Ireland v Samoa – Saturday, 2.45pm
Japan v Scotland – Sunday, 2.45pm
The Brutalist
Director: Brady Corbet
Stars: Adrien Brody, Felicity Jones, Guy Pearce, Joe Alwyn
Rating: 3.5/5
TCL INFO
Teams:
Punjabi Legends Owners: Inzamam-ul-Haq and Intizar-ul-Haq; Key player: Misbah-ul-Haq
Pakhtoons Owners: Habib Khan and Tajuddin Khan; Key player: Shahid Afridi
Maratha Arabians Owners: Sohail Khan, Ali Tumbi, Parvez Khan; Key player: Virender Sehwag
Bangla Tigers Owners: Shirajuddin Alam, Yasin Choudhary, Neelesh Bhatnager, Anis and Rizwan Sajan; Key player: TBC
Colombo Lions Owners: Sri Lanka Cricket; Key player: TBC
Kerala Kings Owners: Hussain Adam Ali and Shafi Ul Mulk; Key player: Eoin Morgan
Venue Sharjah Cricket Stadium
Format 10 overs per side, matches last for 90 minutes
Timeline October 25: Around 120 players to be entered into a draft, to be held in Dubai; December 21: Matches start; December 24: Finals
MATCH INFO
Austria 2
Hinteregger (53'), Schopf (69')
Germany 1
Ozil (11')
RESULT
RS Leipzig 3
Marcel Sabitzer 10', 21'
Emil Forsberg 87'
Tottenham 0
The bio:
Favourite film:
Declan: It was The Commitments but now it’s Bohemian Rhapsody.
Heidi: The Long Kiss Goodnight.
Favourite holiday destination:
Declan: Las Vegas but I also love getting home to Ireland and seeing everyone back home.
Heidi: Australia but my dream destination would be to go to Cuba.
Favourite pastime:
Declan: I love brunching and socializing. Just basically having the craic.
Heidi: Paddleboarding and swimming.
Personal motto:
Declan: Take chances.
Heidi: Live, love, laugh and have no regrets.
How to avoid crypto fraud
- Use unique usernames and passwords while enabling multi-factor authentication.
- Use an offline private key, a physical device that requires manual activation, whenever you access your wallet.
- Avoid suspicious social media ads promoting fraudulent schemes.
- Only invest in crypto projects that you fully understand.
- Critically assess whether a project’s promises or returns seem too good to be true.
- Only use reputable platforms that have a track record of strong regulatory compliance.
- Store funds in hardware wallets as opposed to online exchanges.
Emergency
Director: Kangana Ranaut
Stars: Kangana Ranaut, Anupam Kher, Shreyas Talpade, Milind Soman, Mahima Chaudhry
Rating: 2/5
More on Quran memorisation:
Europe’s rearming plan
- Suspend strict budget rules to allow member countries to step up defence spending
- Create new "instrument" providing €150 billion of loans to member countries for defence investment
- Use the existing EU budget to direct more funds towards defence-related investment
- Engage the bloc's European Investment Bank to drop limits on lending to defence firms
- Create a savings and investments union to help companies access capital
A cheaper choice
Vanuatu: $130,000
Why on earth pick Vanuatu? Easy. The South Pacific country has no income tax, wealth tax, capital gains or inheritance tax. And in 2015, when it was hit by Cyclone Pam, it signed an agreement with the EU that gave it some serious passport power.
Cost: A minimum investment of $130,000 for a family of up to four, plus $25,000 in fees.
Criteria: Applicants must have a minimum net worth of $250,000. The process take six to eight weeks, after which the investor must travel to Vanuatu or Hong Kong to take the oath of allegiance. Citizenship and passport are normally provided on the same day.
Benefits: No tax, no restrictions on dual citizenship, no requirement to visit or reside to retain a passport. Visa-free access to 129 countries.
COMPANY%20PROFILE
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The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
On sale: Now
2025 Fifa Club World Cup groups
Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, Leon.
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
The specs: 2018 Nissan 370Z Nismo
The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
Fuel consumption, combined: 10.5L / 100km