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Dubai, Abu Dhabi bourses planned merger called off

Dubai Financial Market and the Abu Dhabi Securities Exchange (ADX) have shelved a planned merger for the foreseeable future, as terms for the politically sensitive move could not be agreed, Reuters has reported, citing unnamed sources. The state-backed deal, seen as one of the biggest changes in the country’s financial industry in recent years, was expected to energise financial markets in the UAE, making it easier for investors to operate across the markets, stimulating trade and attracting more foreign investment. “It’s been shelved,” said one Abu Dhabi-based banking source aware of the matter, adding that reaching an agreement was always going to be tricky, given multiple points of contention, such as valuations, the location of the merged entity’s headquarters, and the board’s composition.