NASDAQ Dubai Monthly | January 2011 If the newsletter is not displaying correctly, click here to read it online 

Welcome to the latest issue of NASDAQ Dubai Monthly, our online newsletter that updates market participants about developments at the exchange.


  • Exchange proposes new rules to encourage retail IPOs, attract SME and family companies
  • Equities traded value rises 22% in 2010 
  • DP World share price rises 47% over year
  • Seven more brokers join exchange during year
Listing rule proposals aim to increase retail trading, allow smaller companies to list

NASDAQ Dubai this week annnounced proposals for significant changes to its Listing Rules, including steps to increase participation by individual investors in initial public offerings (IPOs). The exchange welcomes public feedback on its proposals.

All IPOs would be required to reserve at least 10% of the offer for individual investors, or else have a minimum of 400 institutional or individual security holders, under the proposals. The current rules contain no minimum requirements.

Jeff Singer, Chief Executive of NASDAQ Dubai, said: "These proposals would ensure that IPOs have a broad investor base from day one and can be easily bought by individual and other investors after listing. We are also proposing new and more flexible rules aimed at attracting family companies and small and medium enterprises."

Under the proposals, NASDAQ Dubai's existing rule that accepts companies with a minimum market capitalisation of 50 million dollars would be retained. In addition, a new rule would allow listings by companies with a market capitalisation as low as 20 million dollars, provided that in such cases the pre-IPO shareholders undertake not to sell their shares within a year of the IPO.

The rule changes would also allow companies to list without any minimum market capitalisation, provided they meet specific criteria of profitability (of 1 million dollars for the most recent 12 months, and an aggregate of 10 million dollars over the most recent three years), or else hold net tangible assets of 10 million dollars. Specific rules are proposed for listing mining, oil and gas companies.

The new proposals would require all equity IPOs to be offered via a prospectus in the Dubai International Financial Centre (DIFC). The prospectus would be filed with Dubai Financial Services Authority (DFSA), the regulator of NASDAQ Dubai.

The rule changes would also strengthen NASDAQ Dubai's framework for listing exchange traded funds (ETFs) and Real Estate Investment Trusts (REITS). The rules for listing exchange-traded commodities (ETCs) and Sharia securities have been revised.

To support NASDAQ Dubai's debt sector, issuers of Sukuk and conventional bonds would be encouraged to obtain an investment grade credit rating before listing.

The proposals can be read in full at . Public consultation will last for 60 days and feedback can be given through the website.

Traded value increases, bucking regional downturn

The value of equities traded on NASDAQ Dubai increased by 22% to 1.31 billion dollars in 2010, up from 1.07 billion dollars in 2009.

The increase came in a challenging year for the region, during which traded value on all other GCC stock exchanges fell, in some cases by more than 50%.

The share price of DP World and Depa, NASDAQ Dubai’s most heavily traded shares, rose 47% and 32%
respectively over the year. Both were in the top 5 gainers for all Dubai-listed stocks. 

NASDAQ Dubai outsourced its trading, settlement, clearing and custody functions for equities to Dubai Financial Market  (DFM) in July 2010, as part of a strategy to increase trading of its equities by individual investors and merge them in one liquidity pool with institutional investors.

Seven more brokers join NASDAQ Dubai

Seven regional brokers became Members of NASDAQ Dubai in 2010, bringing the total number of exchange Members to 35. Of these 22 are regionally based and 13 have their headquarters outside the region, including most of the world’s large investment banks.  

Regional Members gained market share of traded equities value on NASDAQ Dubai from international brokers in 2010. The regional Members share more than doubled to 43%, up from 20% in 2009.

Jeff Singer, chief executive of NASDAQ Dubai, said: “The activity of regional brokers accelerated after July 2010, when NASDAQ Dubai began using DFM’s trading platform. This demonstrates our success in building a market that is regional as well as international.”  

NASDAQ Dubai is recruiting: Head of Listing

We are looking for a strong personality to head up our Listing Authority and uphold our reputation for exceptional international regulatory standards. The successful candidate will work closely with current and potential Issuers and Dubai Financial Services Authority.

At  least 5 years experience in a senior capacity in capital markets is required, with particular knowledge of exchange regulations.  Applicants will ideally come from a listing, legal, regulatory or audit background. 

This role will provide many challenges as well as a high degree of autonomy.

To apply please visit


FTSE NASDAQ Dubai UAE 20 share index falls 2.7% in 2010

The FTSE NASDAQ Dubai UAE 20 index ended 2010 at 1,801, down 2.7% from the end of 2009. The index comprises DP World as well as 10 stocks on the DFM and 9 on the ADX. Its stocks are chosen for large market capitalisation and investability and are free float weighted. Futures contracts listed on the index by NASDAQ Dubai have been designed as a hedging and investment mechanism for GCC and international investors.

Read more about the constituents of the index here >

Members Market Share

Deutsche Bank was the most active Member of the exchange by traded value in 2010, followed by  Citigroup and Al Futtaim HC.

Market share, by value of all traded instruments – 2010
Member Market Share %
Deutsche Bank 23.47  
Citigroup Global Markets 16.21  
Al Futtaim HC 11.62  
HSBC 7.45  
EFG Hermes Brokerage UAE 5.98  
EFG Hermes UAE 5.42  
Arqaam Securities 4.41  
Credit Suisse Securities (Europe) 4.03  
Mashreq Securities 3.03  
DBFS (Mubasher) 2.32  
Merrill Lynch International 2.12  
Shuaa Capital International 1.87  
Emirates NBD Securities 1.85  
Morgan Stanley & Co International 1.66  
Arqaam Capital 1.53  
Shuaa Securities 1.41  
Goldman Sachs International 1.06  
Emirates NBD Capital 1.05  
JP Morgan Securities 0.65  
UBS 0.42  
Al Ramz 0.27  
MAC Capital 0.27  
Wood & Co 0.22  
CBD Financial Services 0.15  
Union Brokerage 0.19  
Index Securities 0.03  
Al Dhabi Brokerage 0.01  
NASDAQ Dubai Academy

NASDAQ Dubai Academy provides training courses in English and Arabic for market participants including issuers, Members, investors and the general public.

Details of upcoming courses will be provided in the next newsletter.

Sign up for NASDAQ Dubai Academy courses here.