Borse Dubai
Encyclopedia
Borse Dubai is a stock exchange
in the United Arab Emirates
.
It is the holding company
for Dubai Financial Market
(DFM) and NASDAQ Dubai (formerly known as DIFX). Borse Dubai was created 6 August 2007 to consolidate the Government of Dubai’s two stock exchanges as well as current investments in other exchanges, expanding Dubai’s position as a global capital market
hub.
Borse Dubai’s growth mandate is extracted from the 2015 Dubai Strategic Plan
which has defined financial services
and capital markets as a key focus area to support the development and growth of regional capital markets to the highest international standards. This is complemented with Dubai’s strong heritage of building global leaders in selected industries.
In September 2007, Borse Dubai secured 28% of the London Stock Exchange
as part of a wider deal with the US-based Nasdaq
designed to settle their long-running battle for control of the Stockholm
-based exchanges and telecommunications operator OMX
. However, the move enraged the Qatar Investment Authority
, which believed it was close to clinching a deal to buy much of the LSE stake for itself. Following completion of the Nasdaq OMX deal, Borse Dubai now holds 19.99% of the holding company's stock. It has obtained a Congressional license to do so, as well as being approved by the SEC.
Stock exchange
A stock exchange is an entity that provides services for stock brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment of income and...
in the United Arab Emirates
United Arab Emirates
The United Arab Emirates, abbreviated as the UAE, or shortened to "the Emirates", is a state situated in the southeast of the Arabian Peninsula in Western Asia on the Persian Gulf, bordering Oman, and Saudi Arabia, and sharing sea borders with Iraq, Kuwait, Bahrain, Qatar, and Iran.The UAE is a...
.
It is the holding company
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
for Dubai Financial Market
Dubai Financial Market
The Dubai Financial Market is a stock exchange located in Dubai, United Arab Emirates. It was founded on March 26, 2000.There are about 57 companies listed on DFM, most of them are UAE-based companies and a few dual listings for companies based in other MENA region countries. Many companies allow...
(DFM) and NASDAQ Dubai (formerly known as DIFX). Borse Dubai was created 6 August 2007 to consolidate the Government of Dubai’s two stock exchanges as well as current investments in other exchanges, expanding Dubai’s position as a global capital market
Capital market
A capital market is a market for securities , where business enterprises and governments can raise long-term funds. It is defined as a market in which money is provided for periods longer than a year, as the raising of short-term funds takes place on other markets...
hub.
Borse Dubai’s growth mandate is extracted from the 2015 Dubai Strategic Plan
Strategic planning
Strategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy. In order to determine the direction of the organization, it is necessary to understand its current position and the possible avenues...
which has defined financial services
Financial services
Financial services refer to services provided by the finance industry. The finance industry encompasses a broad range of organizations that deal with the management of money. Among these organizations are credit unions, banks, credit card companies, insurance companies, consumer finance companies,...
and capital markets as a key focus area to support the development and growth of regional capital markets to the highest international standards. This is complemented with Dubai’s strong heritage of building global leaders in selected industries.
In September 2007, Borse Dubai secured 28% of the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
as part of a wider deal with the US-based Nasdaq
NASDAQ
The NASDAQ Stock Market, also known as the NASDAQ, is an American stock exchange. "NASDAQ" originally stood for "National Association of Securities Dealers Automated Quotations". It is the second-largest stock exchange by market capitalization in the world, after the New York Stock Exchange. As of...
designed to settle their long-running battle for control of the Stockholm
Stockholm
Stockholm is the capital and the largest city of Sweden and constitutes the most populated urban area in Scandinavia. Stockholm is the most populous city in Sweden, with a population of 851,155 in the municipality , 1.37 million in the urban area , and around 2.1 million in the metropolitan area...
-based exchanges and telecommunications operator OMX
OMX
OMX AB is a Swedish-Finnish financial services company, formed in 2003 through a merger between OM AB and HEX plc and is now a part of the NASDAQ OMX Group since February 2008.It has two divisions, OMX Exchanges, which operates eight stock exchanges mainly in the Nordic and Baltic...
. However, the move enraged the Qatar Investment Authority
Qatar Investment Authority
The Qatar Investment Authority is Qatar's sovereign wealth fund, specializing in domestic and foreign investment. It was founded in 2005 to manage the oil and natural gas surpluses by the Government of Qatar...
, which believed it was close to clinching a deal to buy much of the LSE stake for itself. Following completion of the Nasdaq OMX deal, Borse Dubai now holds 19.99% of the holding company's stock. It has obtained a Congressional license to do so, as well as being approved by the SEC.