Dubai Financial Market said it has bid to buy Nasdaq Dubai in a deal worth $121 million to broaden the Gulf Arab bourse's asset class offering and boost revenues. The merger proposal, which had been expected for months, comes at a time when Dubai is struggling to deal with a debt crisis and is restructuring government-linked entities.
Dubai's debt crisis has rocked financial markets globally and dented investor confidence in the Gulf emirate. DFM is 80 percent owned by Borse Dubai, which also owns two thirds of Nasdaq Dubai with the remaining third held by Nasdaq OMX Group. Borse Dubai is owned by the Dubai government.
"This acquisition was purely based on economic merit, we see an added value," Essa Kazim, chairman of Borse Dubai and the Dubai Financial Market, told Reuters. "We have a lot of cash, almost 2.7 billion dirhams ($735 million)... so there is no worries from that end." Kazim said the merger would allow for dual listings and longer trading hours, increasing revenues.