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ERBIL, Kurdistan Region -- With the cooperation of the Dubai Financial Market (DFM) in the United Arab Emirates (UAE), the Kurdistan Region will open its own stock exchange.
Abdullah Abdulrahim, chairman of the Erbil Stock Exchange, told Rudaw, "We received approval from the Kurdistan Regional Government (KRG) and went to the UAE to benefit from their experience in this field. The UAE has the most active stock exchange market in the Middle East."
Sixty international companies have invested in the UAE stock market.
Last week, Abdulrahim signed a memorandum of understanding with the DFM, which will offer the necessary assistance and technical expertise.
Shilan Khanaqa, the KRG trade representative in the UAE, was present at the memorandum signing and told Rudaw, "The DFM will cooperate with the market in Kurdistan to establish a currency exchange and, in the future, a stock exchange."
She added, "This memorandum will last for three years and entails sending employees from the stock exchange market in Kurdistan to Dubai for an 18-month training course. It also entails cooperation in the field of technology."
Abdulrahim expects the stock exchange to open in six months. Regarding the training course in Dubai, he said, "The course will take place in Kurdistan once we have comparable training tools. In the meantime, our employees will go to Dubai for training."
He added, "We have an agreement with Iraq’s stock market as well to train our employees because this job is not easy and requires experience."
Abdulrahim tied the number of employees in Kurdistan’s stock market to its growth. "Initially, there will be 40 to 50 employees. Later, this number will increase to 100. Even the DFM, which is the most active financial market in the Middle East, only has 140 employees."
He also said that the size of investments in Kurdistan’s stock market will depend on international companies and their participation.
Khanaqa said that, as part of their cooperation with Kurdistan, when the stock market opens, the UAE will encourage companies to invest and buy shares in it.
"There are a very limited number of Kurdish companies that can invest in this stock market, because a stock exchange has its own rules,” Abdulrahim said. “They need to be contributing companies that make a profit and are older than one year. They should also have all their activities documented transparently."
Korek Telecom, Asia Cell, Newroz Telecom and Chavy Gashtiyari are shareholders in the stock market and can sell their shares to buyers.
Essa Kazim, the CEO of DFM, said at the memorandum signing that they would be talking with the 60 local and international member companies of the DFM about investing in Kurdistan’s stock market. "The DFM has US$49 billion,” he said. “We will try to make the stock exchange in Kurdistan have $60 billion."
Regarding the motivation behind investing in Kurdistan by UAE companies, Khanaq said, "First, it is the economic progress in Kurdistan. Second, the security in Kurdistan attracts investors. Finally, Kurdish society is a peaceful one and this is also very important."
Khanaqa also noted that the success of the Kurdish leadership, the efforts of the KRG trade representative in Dubai and President Massoud Barzani’s visits to the UAE have attracted investors.
The KRG trade representative office was opened in the UAE three years ago. In terms of international investment in the Kurdistan Region, the UAE ranks eighth.
"The UAE has 82 companies in Kurdistan. We asked them to increase their investments," said Khanaqa. She added that Dana Gas company alone has invested $1 billion in Kurdistan.
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Abdullah Abdulrahim, chairman of the Erbil Stock Exchange, told Rudaw, "We received approval from the Kurdistan Regional Government (KRG) and went to the UAE to benefit from their experience in this field. The UAE has the most active stock exchange market in the Middle East."
Sixty international companies have invested in the UAE stock market.
Last week, Abdulrahim signed a memorandum of understanding with the DFM, which will offer the necessary assistance and technical expertise.
Shilan Khanaqa, the KRG trade representative in the UAE, was present at the memorandum signing and told Rudaw, "The DFM will cooperate with the market in Kurdistan to establish a currency exchange and, in the future, a stock exchange."
She added, "This memorandum will last for three years and entails sending employees from the stock exchange market in Kurdistan to Dubai for an 18-month training course. It also entails cooperation in the field of technology."
Abdulrahim expects the stock exchange to open in six months. Regarding the training course in Dubai, he said, "The course will take place in Kurdistan once we have comparable training tools. In the meantime, our employees will go to Dubai for training."
He added, "We have an agreement with Iraq’s stock market as well to train our employees because this job is not easy and requires experience."
Abdulrahim tied the number of employees in Kurdistan’s stock market to its growth. "Initially, there will be 40 to 50 employees. Later, this number will increase to 100. Even the DFM, which is the most active financial market in the Middle East, only has 140 employees."
He also said that the size of investments in Kurdistan’s stock market will depend on international companies and their participation.
Khanaqa said that, as part of their cooperation with Kurdistan, when the stock market opens, the UAE will encourage companies to invest and buy shares in it.
"There are a very limited number of Kurdish companies that can invest in this stock market, because a stock exchange has its own rules,” Abdulrahim said. “They need to be contributing companies that make a profit and are older than one year. They should also have all their activities documented transparently."
Korek Telecom, Asia Cell, Newroz Telecom and Chavy Gashtiyari are shareholders in the stock market and can sell their shares to buyers.
Essa Kazim, the CEO of DFM, said at the memorandum signing that they would be talking with the 60 local and international member companies of the DFM about investing in Kurdistan’s stock market. "The DFM has US$49 billion,” he said. “We will try to make the stock exchange in Kurdistan have $60 billion."
Regarding the motivation behind investing in Kurdistan by UAE companies, Khanaq said, "First, it is the economic progress in Kurdistan. Second, the security in Kurdistan attracts investors. Finally, Kurdish society is a peaceful one and this is also very important."
Khanaqa also noted that the success of the Kurdish leadership, the efforts of the KRG trade representative in Dubai and President Massoud Barzani’s visits to the UAE have attracted investors.
The KRG trade representative office was opened in the UAE three years ago. In terms of international investment in the Kurdistan Region, the UAE ranks eighth.
"The UAE has 82 companies in Kurdistan. We asked them to increase their investments," said Khanaqa. She added that Dana Gas company alone has invested $1 billion in Kurdistan.
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