Tadawul, the Saudi Arabian Stock Market & Nasdaq Dubai
Khalid I. Natto
The KIN Consortium
April 9, 2009
As the GCC continues to merge and use the same software platforms and exchanges in America and Europe, it should be easier to attain Fair Market Value for both equities and bonds in the region. This is just another step in The Master Plan that has thus far brought local lenders and borrowers together with opportunities to finance the development of the region with meticulous attention to detail. The results of implementing this strategy are available on the satellite image below. Of course the creditworthiness of the region is obvious with the Eighth Wonders of the World in terms of Architectural Masterpieces. This type of tangible evidence should be reflected in the ratings of S&P, Moodys, and Fitch. Our aim is simply to apply the principles of Economics found in Adam Smith's book "The Wealth of Nations". Specifically to the chapters referring to the principles of FREEDOM OF CASHFLOW. Which basically states that cash should flow to investments with the highest possible return, with the appropriate risk valuation. Lets take a closer look at the latest efforts to level the playing field and enhance transparency through the financial markets in the GCC Region.
Capacity and Utilization of Both Exchanges:
The Tadawul Exchange uses "SAXESS" has more capacity than the Nasdaq Dubai Exchange. Although Tadawul is currently carrying a mere 128 stocks, 4 Sukuk Istithmar Islamic Bonds, & mutual funds, it is prime for a major expansion. The pipeline for IPO's of Equities, mutual funds, and Islamic Bonds is full. Mandates have been signed and the prospects for the GCC region are huge.
Tadawul, The Saudi Arabian Stock Market:
On the other hand the Nasdaq Dubai Exchange uses the "X Stream" platform, which is currently experiencing very little volume. There is less than twenty equities listed, less than twenty Conventional Bonds, less than Twenty Islamic Bonds, and less than twenty STRUCTURED Products on the NASDAQ Dubai. For further details on listings on the exchange please refer to the PDF's on the website.
A Comparison of the two Software Platforms:
We have done a thorough analysis of Tadawul vs Nasdaq Dubai from a variety of perspectives. Lets discuss the platform of the computer exchange. Tadawul uses the more powerful "SAXESS" platform, while the Dubai Stock Exchange ( now called Nasdaq Dubai), has implemented another product of OMX that is called "X-stream", which is used for small-medium size exchanges. Both products are made and implemented by Nasdaq OMX, which is the new name for the merged Nasdaq and Netherlands OMX Exchanges. By definition the Nasdaq OMX exchange's software platform ranges from America to Europe to the Middle East.
The affiliations with the Nasdaq OMX software platform's should facilitate the growth of Islamic Finance in the Region and the World. We firmly believe that the listing of Islamic Bonds "Sukuk" is the best way to increase the secondary market for Islamic Finance. As portfolio managers see them trading on an exchange confidence is boosted through price transparency.
We are living in exciting times gentlemen The GCC Region seems to have the most growth potential in the Current Global Economy. They have designed a SELF SUSTAINING GROWTH STRATEGY that entails excelling in real estate development. Specifically in terms:
A. Industrial Development = Economic Cities full of manufacturing plants, universities, medical research laboratories, entertainment centers, new airports, marine ports, trains, etc.
B. Commercial Development = Shopping malls that serve as distribution outlets.
C. Residential Development = Both luxurious homes and apartment buildings.
The aforementioned formula will spurr growth in both jobs and innovation. The Economic Cities are running an aggressive marketing campaign inviting Fortune 500 Companies to set up manufacturing plants in the region. Thus vitalizing both the local and international economy.
The GCC region has huge growth potential that is fueled by real estate development and an ingenious economic master plan. The GCC Economic Model is truly visionary as it incorporates the latest technology in the financial markets to facilitate the development of the region. Please take a look at our interactive maps and explore the Architectural Masterpieces.
Number of Pages in PDF File: 2
Keywords: bourse markets software platform Arab Nasdaqworking papers series
Date posted: February 2, 2010 ; Last revised: February 4, 2010
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