ABU DHABI, The Securities and Commodities Authority has underlined the positive impact of the recent economic measures taken to ensure the UAE’s macroeconomic indicators continue to signal a healthy, booming economy and steady growth, including corporate mergers, debt-to-equity swaps and forging new partnerships to address global economic headwinds.
This came in an SCA meeting, held today in the presence of representatives of UAE companies listed on Abu Dhabi Securities Exchange and Dubai Financial Market under the chairmanship of Dr Obaid Saif Hamad Al Zaabi, CEO of SCA.
The meeting mulled over the possibility of adopting fresh measures to ensure stock purchases-sales balance, with the participants affirming that the naked short-selling practices, being a major cause of financial crises, are not in in place in UAE capital markets.
The SCA's representatives and advisers during the meeting affirmed that UAE financial markets are currently deliberating the possibility of reducing the minimum amount of equity that must be maintained in margin accounts in a way that conforms to relevant world standards.
They added that SCA is streamlining the measures conducive to enabling listed companies to sell their shares back to themselves in line with relevant global practices and guidelines applied in time of crisis. Negotiations are also underway with the Central Bank of the UAE to monetise the equities used as collateral in case stock price falls.
They highlighted the 9 percent YoY growth in net profit secured by public stock companies for 2019 as a testament to the healthy fiscal position of the country's financial and economic sectors.
Source: Emirates News Agency