UAE, Malaysia ink MoU on securities market
The United Arab Emirates and Malaysia yesterday inked a Memorandum of Understanding (MoU) for exchange of information and expertise on securities and reciprocal listing of Islamic bonds (sukuk), stocks and shares on each country’s stock markets.
In her capacity as chairperson of the Emirates Securities and Commodities Authority (ESCA), Shaikha Lubna Al Qasimi, Minister of Economy and Planning, signed the MoU with the chairman of Malaysian Securities and Investment Authority M.D Nour.
The MoU encourages firms to reciprocally list themselves in UAE and Malaysian stock markets.
Following the signing of the MOU, Shaikha Lubna said: "The UAE is a powerful financial centre in the region and enjoys substantial experience, international reputation, political, economic and financial stability, which qualified it to play a vital role both locally and internationally.
However, she admitted that, due to the nascence of the securities market in the UAE, her country had pursued expertise from countries such as Malaysia where stock markets were prosperous. Malaysia, she added, had an abundant experience in Islamic sukuk, stocks and shares and in converting family companies to joint stock companies.
"One of the main advantages of this MoU is that, Malaysia is the largest market that issues and exports Islamic financial products,‘ noted Al Qasimi.
Abdullah S. Alturifi, ESCA Chief Executive, said the issue of Islamic sukuk and stocks in the UAE was imminent.
"The Islamic sukuk system will be introduced shortly in the UAE," he said.
He said some UAE firms, which seek to go international, "are desirous to be listed on Malaysian market, adding that both sides would later explore the possibility of trading in stocks in each country’s exchanges via global brokers.
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