Abudhabi Financial Market Essay Example | Topics and Well Written Essays - 1250 words

Abudhabi Financial Market - Essay Example The laws and regulation of the financial market are favorable for investment. The financial market of Abu Dhabi is on the verge of expansion with the proposed establishment of the world financial market in Abu Dhabi by the end of 2013. Executive Summary The operations of the financial markets of Abu Dhabi have been explained in this work. The various sectors, financial institution and companies comprising the financial markets of Abu Dhabi have been identified. The places of the trading in the financial markets, operational performance of the market and the risk associated with the operations of the financial market in Abu Dhabi have been explained. The rational behind the investors’ preference towards Abu Dhabi financial market has been analyzed by the estimation of risk-return trade off. The proposed plans of expansion of the Abu Dhabi financial market have been indicated through this work. The policies of the Abu Dhabi financial market in order to encourage foreign investme nts have been analyzed. Operations The financial market of Abu Dhabi is comprised of companies in the financial industry that includes the banking sector and the insurance sector. There are as many as seventeen banks that operate in the financial market of Abu Dhabi. There are no less than twelve insurance companies in the financial market of Abu Dhabi. ... Abu Dhabi Securities Exchange is the stock exchange of United Arab Emirates that conducts trading of shares and securities of the markets of Abu Dhabi that also includes the financial market of Abu Dhabi. The securities and shares of sixty seven companies in Abu Dhabi are traded in Abu Dhabi Securities Exchange. Apart from the financial sector, the companies listed in Abu Dhabi Securities Exchange also represent the services industry, industrial and hospitality sector, real estate, telecommunication, energy, etc. The various sectors whose stocks are listed in the Abu Dhabi financial market are given below with values in local currency (Abu Dhabi Securities Exchange, 2013). The Abu Dhabi Securities Exchange was established in the year 2000 for the purpose of trading of shares of the companies in United Arab Emirates. The trading locations of the Abu Dhabi Securities Exchange are at Abu Dhabi, Sharjah, Ras Al Khaimah, Fujeirah, Al Ain. The Dubai Stock Exchange is a different sock excha nge in United Arab Emirates that trades shares of other public limited companies of UAE. However, some of the stocks listed in the Abu Dhabi Securities Exchange could also be traded through brokers in the Dubai Stock Exchange. The performance of the stocks of the Abu Dhabi Financial Market for the last one year is represented in the graph given below (BLOOMBERG, 2013). The above graphical representation of the performance of financial market of Abu Dhabi shows that the financial markets have undergone steady growth pattern in the last one year with less fluctuations of the performance of stocks listed in the financial market. The fluctuations or the volatility of the stocks in the financial market has