On the sidelines of the 14th Annual One on One Conference, H.E. Dr. Obaid Al Zaabi, CEO of SCA, said that SCA expects four new listings in 2018.
A funding platform
Dr. Al Zaabi added that SCA is planning to introduce an initiative, the first of its kind in the world, in collaboration with the OECD, to create a platform for funding SMEs, indicating that this platform will work in a way similar to crowdfunding. He added that arrangements are under way for the introduction of yet another platform for companies operating in free zones to facilitate their access to funding.
Dr. Al Zaabi said that the foreign investment law, expected to come into force in 2018, will permit foreign investors to invest in sectors that were closed to them before.
Market upgrade
Dr. Al Zaabi said that SCA has a strategic objective to have the domestic financial markets upgraded from emerging to developed and that those markets have until 2020 to meet all of the requirements of the upgrade. He added that SCA has already complied with 80 percent of the requirements and that the markets have yet to comply with the remaining 20 percent. Dr. Al Zaabi also said that those markets have been authorized to regulate exchange-specific products and operational activities and to separate clearing and settlement houses and securities depositories from trading platforms, in accordance with the requirements set by developed global markets. They have also launched new products, including hedge products, futures, options, and swaps.
Dr. Al Zaabi said that SCA had come a long way in taking measures aimed at upgrading the UAE markets, including the introduction of new instruments and regulations, such as those dealing with options and central clearing, indicating that the UAE has also made a remarkable progress in this regard over the past years.
The conference aimed at exploring the investment opportunities available and exchanging perspectives on the economic developments in emerging and frontier markets. Among the conference participants were 518 investors from 255 financial institutions whose investment assets exceed eight trillion dollars, plus business community leaders and representatives of 173 companies from 26 countries.
The Egyptian Minister of Business Sector, Khaled Badawy, also gave a speech at the conference, revealing that Egypt is considering building a sovereign wealth fund for the management of government companies and is planning to have those companies listed. He further explained that the idea of building a sovereign wealth fund is still under discussion and is still in its early stages.
Investment opportunities
In a related context, Mohamed Ebeid, Co-Chief Executive Officer of Investment Bank at EFG-Hermes, said that the interest mutual fund managers have in participating in this conference reflects the increasing international interest in exploring the promising investment opportunities available.