Borse Dubai to be holding arm for Dubai Financial Market, Dubai International Financial Exchange

Mumbai: The Dubai government yesterday announced the setting up of Borse Dubai, a holding company, targeted at consolidating Dubai Government''s holding in the two stock exchanges, Dubai Financial Market (DFM) and Dubai International Financial Exchange (DIFX).

Borse Dubai will leverage the existing synergies between the two exchanges with improved infrastructure at both exchanges.

In a statement issued today Dubai Government said, "The creation of the holding company will not alter the legal status of both the exchanges as DIFX and DFM will continue to be regulated by Dubai Financial Services Authority (DFSA) and the Emirates Securities and Commodities Authority (Esca) respectively."

Eisa Kazim, chairman, DFM, who has been appointed the chairman of Borse Dubai, said that the company would be a facilitator, allowing DIFX and DFM to explore joint opportunities for the development of capital markets in the region and in the broader context of global exchanges.

"Both exchanges will share best practices, maintaining operational efficiency at international standards. Borse Dubai will boost confidence among issuers, investors, and intermediaries who will benefit from a presence in both exchanges, as well as a broader and more varied range of services," Kazim said.

Borse Dubai is expected to form a common platform for both Dubai based stock exchanges to expand internationally. Last year Dubai International Financial Centre (DIFC) built up a 3.5 per cent stake in Euronext, the European exchanges operator the NYSE acquired earlier this year.

Earlier this year DIFC, through its investment arm DIFC Investments acquired 2.2 per cent stake worth $1.8 billion in Deutsche Bank.

Dr. Omar Bin Sulaiman, Governor, DIFC said, "Dubai 2015 plan seeks to position our Emirate as a global hub of a diversified economy. Naturally… Borse Dubai is the answer and the right vehicle for this."