Ranvir Nayar takes a closer look at how GCC’s stock markets are behaving
May 17, 2012 3:32 by kippreport
Local markets are definitely not in the same stage of maturity or development as some markets around the world. The number of companies listed is very small and the float of these companies is also rather limited. This imposes limits on the liquidity of the market, making them more volatile. Also, the bourses the world over serve a key function of providing access to cheap and easy capital, and this function is far from fulfilled by the GCC bourses as the very small number of IPOs in 2011 showed. For the development of the GCC economies, it is vital for entrepreneurs to have access to this capital. Also, more floatations and higher number of listed companies would make markets less volatile and more certain. That would definitely help the companies and the economy.
- Ranvir Nayar
First published in Trends