Sunday, Jun 19, 2011
Gulf News
Dubai: The UAE will learn this week whether it will be upgraded to emerging market status by index compiler Morgan Stanley Capital International (MSCI).
Analysts say that the decision, which is due to be made public on Tuesday, could open the UAEs three bourses the Dubai Financial Market (DFM), the Abu Dhabi Securities Exchange ADX) and Nasdaq Dubai to multi-billion dollar funds and would rank the country alongside emerging markets China, India and Brazil.
MSCI indices
I think an upgrade would make a massive difference. We are not talking about a short-term solution; the MSCI emerging markets index is tracked by investors who are managing funds worth trillions of dollars, said Haissam Arabi, Chief Executive and Fund Manager at Gulfmena Alternative Investments. We may not see much immediate change but over time the country will attract greater cash flows.
MSCI global equity indices serve as the basis for over 400 exchange traded funds throughout the world. Many analysts believe the UAE has satisfied most of MSCIs requirements for an upgrade, but also say much will depend on whether there is demand for such a move by foreign investors and fund managers.
Others say that the UAE has already been rejected twice before for an upgrade.
By Kevin Scott, Staff Reporter
Gulf News 2011. All rights reserved.
