As first reported by Reuters, Dubai and Abu Dhabi are contemplating a merger of their two main stock exchanges and have hired banks to advise them in the state-backed deal.
Abu Dhabi has hired investment bank J.P. Morgan Chase and First Gulf Bank to advise on the merger of the two bourses (the Dubai Financial Market and the Abu Dhabi Securities Exchange), anonymised sources said, reports Reuters.
Any merger of the exchanges could invigorate financial markets in the United Arab Emirates, making it easier for investors to operate across the markets and encourage foreign investment and trade. It would be one of the biggest reforms in the country's recent financial industry, and demonstrates a cooperation between the two emirates which hasn't always been there.
(Dubai Financial Market General Index - Bloomberg)
(Abu Dhabi Securities Market General Index - Bloomberg)