'Regional trading on the rise' says NTG Chairman

He pointed out that Arab investors will be able to hedge investment risks through diversifying their portfolios by including various financial instruments; such as equities, currencies and commodities in more than one Arab market.

He added that electronic trading (e-trading) will be the ultimate enabler in boosting regional investment in the different Arab markets.

Alballaa further indicated that the Arab world will witness substantial growth in the financial sector.

In 2007, financial markets in the Arab and GCC region recorded a traded value of $1trillion, led by TADWUL, the Saudi stock exchange, which accounted for more than 60% of the region's traded volume, worth $700bn.

Dubai Financial Market (DFM) trading value reached more than $100bn; while Cairo and Alexandria Stock Exchanges (CASE) traded $50bn worth of stocks.

Al Ballaa clarified that more than 10 % of trading volume is attributed to investments of expatriates (non-nationals).

He forecasted that this percentage will double in the coming years on the back of growing e-trade and attractive investment opportunities in the Arab markets, especially that those markets are not correlated; the factor which minimizes investment risks.

In an estimate of the value of e-trading in the Arab markets, Al Ballaa pointed out that the Saudi market is considered to be the most active, since e-trading accounts for over 50% of the total value of trade; followed by DFM at 30%; then CASE and Abu Dhabi at 15 %; finally Muscat market at 10%.

He added that Iraq and Jordan are set to adopt e-trading this year.

It is worth mentioning that Mubasher, the premier provider of e-financial solutions in the region, has launched the Electronic Trading Service in the Arab markets through one investment portfolio; a system which financial brokers, retail and corporate investors can benefit from across the region.

Mubasher, moreover, provides a range of advanced services; such as stock real-time prices & buy/sell transaction services, in addition to technical and fundamental research and wide-ranging analysis tools, that help investors take the right decisions.