The No. 1 Regulations Would Change UAE Stock Markets Of All Time

It is learned that Emirates Security Market ordiscrepancies. The analytical studies of companies
shortly called ESCA have decided to allow foreignwill help investors know the real value of shares
Financial firms licenses to act as consultants andto make correct decision to buy or sell.
analysts to operate in UAE. This is a positive stepThe new regulations will be effective within four
to protect the Financial Markets here & luremonths time frame allowing all parties to
foreign funds. It means the bourse is expected tocoordinate with the central bank, stock markets
perform well in 2008-2009.and the brokers. The Companies providing
However, Esca stressed that the new licensedforecasts and analysis must be owned 51% by
companies will refrain from activities that mayUAE national with a minimum paid up capital of
harm the markets or the dealers. CompaniesDh1 million. This new legislation is expected to
would be banned if and when exporting offeringsfortify the framework of UAE stock markets.
or issuing financial consultancies relevant to certainThe licenses for companies and individuals are
commodities and securities that would conflict withrenewable and have a duration of one year that
or contradicts the consultancy service givenwould terminate by the end of December of each
This decision will ensure a healthy environment toyear.It expected that new law will boost the
issue highly credible and transparent studies,performance of the markets by and large.
especially after the increase in reports with some