By the end of 2006, 10 Pakistani companies currently listed on Karachi Stock Exchange will be listed in the United Arab Emirates. Hanif Jakhura, chief executive of Pakistan's Central Depository Company, central securities depository, will be in Abu Dhabi on September 18.
To sign an Memorandum of Understanding (MoU) with officials from Abu Dhabi Securities Market, Bilal Khan Pasha, commercial secretary at Pakistani consulate in Dubai, said.
Jakhura will sign a similar MoU with Dubai Financial Market on September 20. "We expect listings to take place within two to three months of signing MoUs," Pasha said. Priority is being given to Pakistani companies in which UAE investors hold significant stakes.
So far, there are firm plans to list three companies-United Bank Limited, Pakistan Telecommunication Company Limited and Bank Al Falah Limited, Pasha said. Other seven companies will be finalised before MOUs are signed.
He said Enshaa, a joint venture between Al Futaim Group of UAE and Pakistani shareholders is in process of listing on Karachi Stock Exchange and could be among final 10.
Abu Dhabi Group owns Bank Al Falah and has 50 percent stake in United Bank Limited while Emirates Telecommunications Corporation, or Etisalat, recently acquired a 26 percent stake in PTCL with its management control.
"We have many companies that are interested in listing here. However, we are short-listing 10 from banking, telecom, service and real estate sectors," Pasha said.
Syed Qaiser Anis, president of Pakistan Business Council Abu Dhabi said Commercial section of Dubai Consulate and Pakistan Business Council played role of matchmaker between CDC and UAE financial markets. In addition to listing shares on UAE stock exchanges, Pakistan intends to listbonds, mutual funds, and open-and closed-ended funds in UAE.
Pakistan has now allowed companies dealing in funds to invest 30 percent of equity in non-Pakistani products, he said. This gives them chance to seek listing on UAE financial markets.
Anis said registering in Dubai International Financial Centre financial free-tradezone is also possibility. "If we register here, it will be a different ball game altogether. Companies would be able to list funds and bonds on other Gulf Co-operation Council markets, in addition to UAE exchanges." Pasha said UAE's large Pakistani population is largely untapped, and predicted listing of Pakistani companies here will change that. He said listings will be equally beneficial to UAE stock markets and Pakistani companies. "We have to tap surplus investment capital in UAE."
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