The UAE stock market regulator will actively monitor the comments of chief executives to ensure they are transparent and truthful following the Arabtec-led market meltdown last month.
The Securities and Commodities Authority (SCA) has launched a permanent committee to review remarks by CEOs and analysts and their material impact on the stock price.
The SCA said yesterday that a technical panel that included the Abu Dhabi Securities Exchange, Dubai Financial Market and Central Bank had been formed.
The committee will “follow up transactions which impact markets to ensure soundness and integrity of trading, and ensure absence of any suspicion of manipulation of securities’ price”, the SCA said in an emailed statement. It will also “monitor statements of CEOs and securities analysts to ensure that they are transparent and truthful”, as well as “review sharp market movements and submit recommendation”, the SCA said.
Panicky retail investors rushed to sell off shares last month after Arabtec’s chief executive Hasan Ismaik resigned, and hundreds of staff were cut, raising questions over the company’s future. Arabtec’s stock lost more than 50 per cent of its value from May to June, triggering a wave of margin calls, squeezing the liquidity of retail investors who currently make up 80 per cent of market traded value.
The subsequent equity rout cut more than 10 per cent from Dubai’s index.
The correction of Arabtec’s shares came after a bull run that pushed its share price up more than 600 per cent over the past two years since Aabar Investments became a strategic shareholder and following announcements of projects and plans aimed at turning Arabtec into a top 10 global contractor.
Mr Ismaik had on at least two occasions also made public statements on how much he thought the shares were worth, further inflating the price.
Mr Ismaik had also been building his stake from 8 per cent all the way up to 28.8 per cent, in what was described as a vote of confidence that would reduce volatility in Arabtec’s share price, when it was eventually disclosed.
Stockbrokers say the recent move by the regulator shows a shift towards a more proactive approach in line with the regulatory environment in other countries such as the United States.
“You have two different views, either the Financial Services Authority of the UK where you have a light set of regulations and set of general principles and act when it impacts the credibility of the market, or the US Securities Exchange Commission, where you must tick all the boxes and comply with forms and its heavily regulated,” said Fathi Ben Grira, the chief executive at Mena Corp, an investment company in Abu Dhabi.
“Had the SCA taken the FSA approach they would have acted before, but now by creating this committee, it appears like they are inclined to be looking at the SEC way.”
halsayegh@thenational.ae
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What is Folia?
Prince Khaled bin Alwaleed bin Talal's new plant-based menu will launch at Four Seasons hotels in Dubai this November. A desire to cater to people looking for clean, healthy meals beyond green salad is what inspired Prince Khaled and American celebrity chef Matthew Kenney to create Folia. The word means "from the leaves" in Latin, and the exclusive menu offers fine plant-based cuisine across Four Seasons properties in Los Angeles, Bahrain and, soon, Dubai.
Kenney specialises in vegan cuisine and is the founder of Plant Food Wine and 20 other restaurants worldwide. "I’ve always appreciated Matthew’s work," says the Saudi royal. "He has a singular culinary talent and his approach to plant-based dining is prescient and unrivalled. I was a fan of his long before we established our professional relationship."
Folia first launched at The Four Seasons Hotel Los Angeles at Beverly Hills in July 2018. It is available at the poolside Cabana Restaurant and for in-room dining across the property, as well as in its private event space. The food is vibrant and colourful, full of fresh dishes such as the hearts of palm ceviche with California fruit, vegetables and edible flowers; green hearb tacos filled with roasted squash and king oyster barbacoa; and a savoury coconut cream pie with macadamia crust.
In March 2019, the Folia menu reached Gulf shores, as it was introduced at the Four Seasons Hotel Bahrain Bay, where it is served at the Bay View Lounge. Next, on Tuesday, November 1 – also known as World Vegan Day – it will come to the UAE, to the Four Seasons Resort Dubai at Jumeirah Beach and the Four Seasons DIFC, both properties Prince Khaled has spent "considerable time at and love".
There are also plans to take Folia to several more locations throughout the Middle East and Europe.
While health-conscious diners will be attracted to the concept, Prince Khaled is careful to stress Folia is "not meant for a specific subset of customers. It is meant for everyone who wants a culinary experience without the negative impact that eating out so often comes with."
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Company name: baraka
Started: July 2020
Founders: Feras Jalbout and Kunal Taneja
Based: Dubai and Bahrain
Sector: FinTech
Initial investment: $150,000
Current staff: 12
Stage: Pre-seed capital raising of $1 million
Investors: Class 5 Global, FJ Labs, IMO Ventures, The Community Fund, VentureSouq, Fox Ventures, Dr Abdulla Elyas (private investment)
Malcolm & Marie
Directed by: Sam Levinson
Starring: John David Washington and Zendaya
Three stars
Veil (Object Lessons)
Rafia Zakaria
Bloomsbury Academic
The specs
Engine: 2-litre or 3-litre 4Motion all-wheel-drive Power: 250Nm (2-litre); 340 (3-litre) Torque: 450Nm Transmission: 8-speed automatic Starting price: From Dh212,000 On sale: Now
Tips for taking the metro
- set out well ahead of time
- make sure you have at least Dh15 on you Nol card, as there could be big queues for top-up machines
- enter the right cabin. The train may be too busy to move between carriages once you're on
- don't carry too much luggage and tuck it under a seat to make room for fellow passengers
Kamindu Mendis bio
Full name: Pasqual Handi Kamindu Dilanka Mendis
Born: September 30, 1998
Age: 20 years and 26 days
Nationality: Sri Lankan
Major teams Sri Lanka's Under 19 team
Batting style: Left-hander
Bowling style: Right-arm off-spin and slow left-arm orthodox (that's right!)
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COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
