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UAE revives bourse merger proposal

2013-06-18

The UAE has revived a proposal to merge its two main stock exchanges in a state-backed deal that could boost trade in the local market and attract more foreign investment to the Gulf state, unnamed sources familiar with the plan said. Talks on a potential merger between the Dubai Financial Market (DFM) and the Abu Dhabi Securities Exchange (ADX) have occurred on and off since at least 2010. There are no common listings on the exchanges; a merger could deepen the equity market of the Arab world"s second biggest economy, encouraging more companies to list their shares and more international institutions to buy them. In recent weeks, however, officials in Abu Dhabi and Dubai have focused on the idea again, with the two emirates showing willingness to consolidate some of their business interests to compete in the global economy, the sources said. (Reuters)