Capital markets 'worked as advertised' during financial crisis

Singer told delegates that Nasdaq's FTSE 20 index - made up of 12 DFM-listed stocks, seven ADX stocks and Nasdaq's own DP World - had staged a 95% recovery during 2009, although from a very low base. 'You might ask where this recovery has come from. Stocks fell heavily in 2008, so these shares have made up a lot of ground.'

Nasdaq Dubai's chief added that the volume and value of trades had only really begun picking up in the last quarter: 'The value of trades is down, and way down. The first six months have been very difficult, it has only really begun recovering in the last three months. Volumes have also only really picked up in the last few months. Hopefully it's a sign of things to come.'

Singer noted that the region had only seen 17 IPOs in 2009, compared to 51 in 2008, 'in line with world markets.'

Diversification

As part of a diversification programme the Nasdaq Dubai launched a derivatives service in 2008, which has become increasingly popular according to Singer: '[At first] We saw incredibly high volumes, which came to a halt by July 2008 and only managed to pick up a little in Q1 2009. We knew that it was going to take a while to restore liquidity and for volumes to pick up, but we took the long option. Now, volumes that we were seeing in one quarter went to one month, volumes from a month went to one week - now we want to see it in one day, then one minute.'

Nasdaq Dubai has also focused on improving its debt market as a means of keeping competitive. 'Even during the early stages of the crisis those with capital were looking for investment opportunities, so we knew that they would be looking at debt markets. We had to look at our own debt market to make it competitive on a global level. Now, if a company comes to us, and it's a new programme, we turn it around in four days. We turn an existing programme around in two days.'

Predictions

Looking forward Singer told delegates that the region's markets would see increasing transparency, as well as protective legislation.

'You're going to see more steps towards transparency in the UAE and the region. It may be slow but it will happen.

'You will also see more regulation protecting minority shareholders, especially in family businesses where the owners want to keep a controlling share.'