ABU DHABI / WAM
According to official figures from the Abu Dhabi and Dubai Securities Exchange, the value of margin trading finance reached AED85.7 billion in 2016, an increase of 12.7 percent from AED76 billion in 2015.
An analysis by Emirates News Agency, WAM, showed that the value of the margin trading finance, presented by brokerage companies to their clients, constituted 23.5 percent of the total value of all deals done in both markets. This reached a total of AED364 billion from both buying and selling at the end of 2016.
The growth in the percentage of financial facilitations came with sustained growth in the number of brokerage companies that provided the service, with 35 companies out of the total of 48 companies, working in the Abu Dhabi and Dubai security exchange markets during the past year. Officials from the Higher Executive Management in both stock exchanges have agreed on the importance of the margin transaction service, which has become an important advanced investment product. It has contributed to the addition of other services and elevated the level of emerging markets under the 2013 Morgan Stanley Index.