The country’s stock market trading began in Dubai Financial Market last March 2000. The Financial Market is used for trading securities, issuance of public shares from the companies, Bonds issued by the Federal government, investment unit from the local investment funds and other financial instruments, local or foreign. The market is regulated by the Emirates Securities and Commodities Market Authority. The ECSA bans insider trading and imposes transparency rules and release of information and guidelines.
The emirate had experienced major influx of investment in the stock markets during the fall of the Iraqi leader, Saddam Hussein. The Market capitalization had reached a level of Dh 4. 5 Billion which can be considered up by 17% in the late 2003. The market is cautious on the money laundering issue. As an effect, the DFM refused to accept big amounts of cash to ensure that the money that they would get is from clean and legal sources. Strategies had been implemented by the financial market through organization and clearance of would be shareholders in the market.
According to the Lowtax.net website, Dubai International Financial Exchange aims to lead exchange in region for equities, bonds, funds, Islamic products and other securities. The Institution is also considered as a gateway for international and regional investment. Companies who are included in the listings on the exchange must have a minimum market capitalization of $50 million. The exchange guidelines are regulated to allow companies to identify portion of shares that they want to offer to the public. Corporate Tax is not implemented in Dubai. Only the oil producing companies and foreign banks experience corporate taxes. Personal taxes are also not implemented.
Traditions of the UAE are violated by the use of direct taxation and it is very unlikely that the said taxes would be implemented in the future. All businesses are required to keep financial records but current legislation is not specific regarding the nature of the records. In 20th November of 2006 it was announced by S1 Corporation that NDB or the National Bank of Dubai implemented that its EMV complaint keeping in mind the real estate boom in Dubai. In this context the bank would be assisted by another Dubai based corporation, the DDF or the Dubai Duty Free and the entire project is overlooked by the S1 Corporation.
It should be noted that this company, S1, is a noted software solution company in the context of payment service and customer financial assistance. Thus it can be stated that there is a huge amount of faith and credibility associated with the entire scenario. It should also be noted in this context that the this move is the first in the region of Gulf or the UAE and implementation of EMV EFTPOS would be an extremely significant move in the banking and transaction related aspects of Dubai.
Initially, it should be remembered that, Dubai Duty Free and National Bank of Dubai used intergraded solutions but that was not EMV but soon it was realized that to attain international standards it would be essential to incorporate the finest and upgraded software systems and solutions. At this point of time it could be safely stated that payments and bank transactions are as safe as it is anywhere in Europe or the US. This was a timely move by the authorities and it has certainly helped the credibility of the banking systems and transactions in the banking system of Dubai especially in the real estate related business.