Dubai: Country and Foreign Investment
Dubai stock market trading began in March 2000 on the Dubai Financial Market (DFM). This operates as a secondary market for trading securities issued by public shareholding companies, bonds issued by the Federal Government or any of the Local Governments and public institutions in the country, investment units issued by local investment funds and any other financial instruments, local or foreign, which are accepted by the Market. Located in the Dubai World Trade Center, the Market is regulated by the Emirates Securities and Commodities Market Authority (ESCA). Its rules ban insider trading and enforce transparency rules and release of information guidelines.
DFM has an electronic share registry, order-driven trading and a clearing system that can support six trading floors and link more than 3,000 terminals. Share tickers are displayed on TV, the Internet, Reuters, Bridge and Teletext. Trading hours are 10.00am -2.00pm Saturday to Thursday. In November 2008 DFM merged with NASDAQ Dubai (see below).
On 11 July, 2010, NASDAQ Dubai outsourced its trading, settlement, clearing and custody functions for equities to DFM as part of a strategy to increase trading volumes. At the same time, the outsourcing created a deep liquidity pool with over 550,000 investors.