Not exactly, for every stock market has a structure and systems which are basically designed to enable the public to participate in ownership of member companies. A stock market is also a vital forum for entrepreneurs to present exciting new projects, and to invite the world to participate in their realization.
However, the efficiency and effectiveness parameters of every stock market enable each of them to compete with their peers. This kind of rivalry was traditionally national in character until New York set a trend of two major alternatives for investors, fund managers and companies in the same city. Recent moves to acquire shares of the London Stock Exchange could signal a new trend of consolidation and uniform regulatory practices across oceans and continents.
It is therefore most significant that the ruling family of Dubai has unveiled plans to form a public company of their stock exchange. The world will be allowed to participate in 20% of the Dubai Stock Market, breaking new ground in the relatively unknown financial circles of the Middle East. Dubai has not escaped the backlash of bearish sentiment sweeping most of the emerging world in May 2006, and indeed market capitalization has suffered a very dramatic downturn in the recent past. However, the business people of Dubai are known for their commercial acumen, and hence a stake in the Dubai Stock Market represents extraordinary value. Investors all over the world are certain to respond to the offer by Dubai’s Emir, Sheikh Mohammed bin Rashid Al Maktoum, with overpowering enthusiasm, and it will probably mark the beginning of a new financial center in this part of the world.
