Stock Market in UAE

Abstract

Trading in stocks on the stock market is typically driven by speculation, based on company news and performance factors. There are two ways to try and find the market value of a stock. Stock value is determined using some type of cash flow, sales or earnings analysis. This form of stock valuation is based on historic ratios and statistics and aims to assign market value to a stock based on measurable attributes. Another way a stock market can be explained is to ask one to look at how much investor is willing to pay for a particular share of stock and by how much other investors are willing to sell a stock for. In other words, it explains the market’s supply and demand. This form of stock valuation is very hard to understand or predict, and it often drives the short-term stock market trends the article title "The Stock Market in UAE" was done to assess the stock market in the country. The tool used for data collection was a secondary data from different sources like ESCA (Emirates Securities & Commodity Authority), Abu Dhabi Securities market, DFM (Dubai Financial Market) and DGCX (Dubai Gold & Commodities Exchange).  The main finding of the study was that, the Stock market in UAE is new and still needs for more rule and regulations to meet the standards of international stock market. The researcher understands that there could be two reasons for this finding, either the market is not that free in decisions (demand and Supply) and the market have its own rules and regulation which is make it a way from the international lows of stock and securities exchange. Therefore, it can be assessed that, the stock market in UAE needs some lows to enhance their activities. The researcher has undertaken a sincere effort in understanding the stock market in UAE and hopes that the findings and suggestions elicited in the thesis would be productive to the market.