Eng. Muhammad Al Ballaa, Chairman of National Technology Group (NTG), confirmed in his keynote speech at Trade Tech 2008 forum, held recently in Dubai, that the Arab world will witness a significant rise in the volume of regional trading. He pointed out that Arab investors will be able to hedge investment risks through diversifying their portfolios by including various financial instruments; such as equities, currencies and commodities in more than one Arab market. He added that electronic trading (e-trading) will be the ultimate enabler in boosting regional investment in the different Arab markets.
Alballaa further indicated that the Arab world will witness substantial growth in the financial sector. In 2007, financial markets in the Arab and GCC region recorded a traded value of one trillion USD, led by TADWUL, the Saudi stock exchange, which accounted for more than 60% of the region’s traded volume, worth $700 billion. Dubai Financial Market (DFM) trading value reached more than $100 billion; while Cairo and Alexandria Stock Exchanges (CASE) traded $50 billion worth of stocks.
Al Ballaa clarified that more than 10 % of trading volume is attributed to investments of expatriates (non-nationals). He forecasted that this percentage will double in the coming years on the back of growing e-trade and attractive investment opportunities in the Arab markets, especially that those markets are not correlated; the factor which minimizes investment risks.
In an estimate of the value of e-trading in the Arab markets, Al Ballaa pointed out that the Saudi market is considered to be the most active, since e-trading accounts for over 50 % of the total value of trade; followed by DFM at 30 %; then CASE and Abu Dhabi at 15 %; finally Muscat market at 10 %. He added that Iraq and Jordan are set to adopt e-trading this year.
It is worth mentioning that Mubasher, the premier provider of e-financial solutions in the region, has launched the Electronic Trading Service in the Arab markets through one investment portfolio; a system which financial brokers, retail and corporate investors can benefit from across the region. Mubasher, moreover, provides a range of advanced services; such as stock real-time prices & buy/sell transaction services, in addition to technical and fundamental research and wide-ranging analysis tools (on www.mubasher.info) , that help investors take the right decisions.
|
Market
|
Trading Value
(in bln U$D)
|
Market Value
(in bln U$D)
|
Foreign Trading %
|
|
Tadawul
|
701
|
533
|
Estimate: GCC nationals (3%) - Arab expatriates (2%) - foreign expatriates (1%)
|
|
DFM
|
101
|
138
|
GCC locals (5%) – remaining Arabs (12%) - foreigners (14%)
|
|
CASE
|
54
|
140
|
Arabs (12%) - foreigners (19%)
|
|
ADX
|
48
|
112
|
Estimate: Arabs (17%) - foreigners (8%)
|
|
DSM
|
25
|
96
|
Estimate: Foreigners (30%)
|
|
ASE
|
15
|
42
|
Estimate: above 50% of foreign equity
|
|
MSM
|
5
|
27
|
Arabs (16%) - foreigners (12%)
|
|
BSE
|
1
|
27
|
Arabs (36%) - foreigners (21%)
|
|
Source: Mubasher Info (www.mubasher.info)
|
Nb. The market symbols refer to the following:
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|
|
|
Tadawul = Saudi Stock Exchange
|
|
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DFM= Dubai Financial Market
|
|
|
CASE= Cairo & Alexandria Stock Exchanges
|
|
|
ADX= Abu Dhabi Exchange
|
|
|
DSM= Doha Securities market
|
|
|
ASE= Amman Stock Exchange
|
|
|
MSM= Muscat Securities Market
|
|
|
BSE= Bahrain Stock Exchange
|
|
|
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-ends-
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