Last week, a report was published that shows a doubling of increase in the share prices of most companies in Dubai, including Aamar Company, The Bank of Dubai and others. The achievement of a large increase in these prices indicates clearly that financial investments in Dubai are enjoying continuous success and an upward trend. So, why do find this remarkable success in Dubai?
Investment – in all its forms, but especially the financial – needs a safe and sound environment in order to grow daily. As they say, investment is “a coward” and quickly flees unless it finds safety and security; as such, the development of financial investment in Dubai and its attainment of the highest levels show the availability of the safety and security that are vital conditions for the proliferation of investment.
In spite of the financial and economic setbacks to which Dubai was exposed some years ago – as a result, largely, of the global financial crises that affected the whole world – Dubai was able to recover and to stand up again. Not only to stand up, but to move forward with steady steps, which has led to the success of companies operating in Dubai and to a high level of increase in their share prices and revenues. From the preceding we see the strong resurgence of Dubai and its occupation of its distinguished position in the economy of the region as well as that of the world.
This success, however, did not happen spontaneously and without an incentive and a guiding hand. Instead, what happened was that the relevant agencies in Dubai assumed the role of a capable “helmsman” in steering the “rudder” in the direction of restoring matters to what they used to be – or, in other words, in crossing troubled waters to reach the shore of safety. What has helped this “helmsman” is having a strong will and a determination to reach for the stars. In service of this goal, the relevant agencies have collaborated all as one to lay down the appropriate rules and regulations for this innovative work. Above all, great care has been taken in the proper implementation of these rules and regulations, while at the same time keeping a realistic outlook and benefiting wisely from the findings of others.
The laws regulating investment in Dubai’s financial markets comprise the highest international standards; particularly those laws that pertain to transparency and full disclosure. This transparency and disclosure of the companies listed in the financial markets relates to their ongoing activities as well as their new operations and proposed projects, with disclosure of all the accounting and technical details related to these activities. Additional requirements are: the clarifying of what is expected from these activities and new projects, why and how this is expected, and whether these expectations conform to the most modern standards necessary for good corporate management.
The purpose of the aforementioned laws is to enable the achievement of the highest levels of confidence, security and assurance for the investor. After all, the investor is the cornerstone of the enterprise and should enter the investment in security, confidence and awareness of all the details that he/she asks for. Additionally, the investor should be supplied with full technical logistic support as well as the legal coverage that provides all the legal guarantees and protection.
Among the important points that have lead and continue to lead these companies and their caretakers to success and profit is the commitment to the implementation, according to the highest standards, of the rules pertaining to “corporate governance.” The testimonies to this implementation are the reports issued by the companies with regard to their execution of the principles of “governance.” These reports show the activities, in this regard, of everyone from the Chairman of the Board of Directors, to the members of the Board, in their different capacities, to the executive directors’ team from top to bottom.
Unquestionably, real commitment to achieving the required standards for corporate governance will lead to wise management of the company in accordance with the best management principles. These principles are wedded to the institutional professionalism that will lead the company to advancement and the highest levels of success. The preceding is, in fact, what we see clearly in these companies in Dubai and it is, of course, what has caused shares to reach the highest prices in light of the stiff yet honorable competition amongst the investors serious about investing in the shares of these companies.
In addition, the financial markets in Dubai enjoy advanced legal regulations and checks, as well as the sound procedural mechanisms to carry out these checks in accordance with the required principles and standards. Consequently, these markets have gained international recognition by being promoted to the rank of “emerging markets” recently.
The attainment of this advanced level by Dubai’s financial markets, as well as their international recognition, indicates, without a doubt, that the authorities in charge of these markets are sparing no effort in providing a safe and secure environment for the investment, without hesitation, in these markets.
Of course, the rank of “emerging markets” is something that financial markets the world over seek. As such, reaching this stage is akin to receiving an international “merit award.” This achievement opens the door wide for foreign investment and foreign companies to penetrate into these markets since they have been officially confirmed as “emerging markets.” Based on this confirmation, investment can proceed without fear or trepidation since these markets provide all the legal guarantees and requirements for financial investment in line with accepted international standards.
For the reasons stated above, and others, we find that financial investment in Dubai is successful because the managerial will and determination are there, and they are abundant in penetrating ideas and in ambitions which dare to actualize these ideas in order to achieve the desired goals. Because of this and for all of this, earnest effort has been exerted in Dubai in order to provide a suitable and safe environment for financial investment in the context of sound legal regulations and according to modern professional standards.
Looking ahead to the foreseeable future, we can say that all types of financial investment in Dubai will continue to increase and will do so in all the sectors – financial; trade; real estate; tourism; industrial; technical; service, as well as other areas. This forecast is based on the fact that all investments are growing under caring and comprehensive auspices whose sole goal is the nurturance of investment and its development for the benefit of all. For the sake of this goal, everyone in Dubai works as one person with one thought and one heart. As a result, investment grows every day.
Dr. AbdulQadir Warsamah Ghalib
Legal consultant; head of the division for legal affairs of the Bahrain and Kuwait Bank;
lecturer in Labor and Trade Law at the American University of Bahrain
Email: awghalib@hotmail.com
