ABU DHABI, June 19 (Reuters) - A potential merger between
the two main stock exchanges of Dubai and Abu Dhabi would have
"many advantages" for the country's financial sector, the chief
executive of the United Arab Emirates' equities market regulator
said on Wednesday.
"In case the two markets are merged into one it will have
many advantages, although the SCA has not seen any negative
aspects in the current situation of having two markets," Abdulla
al-Turifi, CEO of the Securities and Commodities Authority, said
in an emailed statement.
The UAE has revived a proposal to merge its two main bourses
in a state-backed deal that could boost trading and attract
more foreign investment to the Gulf state, sources familiar with
the plan told Reuters earlier this week.
Without commenting on whether a merger was likely, al-Turifi
said: "There are technical, administrative and logistics
preparations to be made first before the merger is completed and
we are ready for whatever decision that would be made in this
regard. We hope this will be made very soon."
Talks on a potential merger between the Dubai Financial
Market (DFM) and the Abu Dhabi Securities Exchange
(ADX) have occurred on and off since at least 2010.
DFM is 80 percent owned by Borse Dubai, a holding company
which also has a 33 percent stake in the Nasdaq Dubai bourse, as
well as nearly 21 percent of the London Stock Exchange,
according to its website. ADX is owned by the Abu Dhabi
(Reporting by Stanley Carvalho; Writing by Dinesh Nair; Editing
by Andrew Torchia)