By Ghaith  S.

 The Dubai International Financial Exchange (DIFX) gave on Monday a presentation in Amman to bankers, business people and potential investors, to acquaint them with the workings of the exchange. 

DIFX Chairman Henry Azzam, who spoke at the event, commented: “As the region’s international market, the DIFX has close links with financial institutions and other companies across the Middle East and beyond. “

He added, “We are delighted to explain the benefits of our market to people in Jordan, where there is great potential for involvement in the growth and development of the exchange.”

Azzam said that they are here to explain how to list public shareholding companies at Amman Stock Exchange (ASE) with DIFX on a Global Depositary Receipt (GDR) basis, a bank certificate issued in more than one country for shares in a foreign company; those shares are held by a foreign branch of an international bank. The shares trade as domestic shares, but are offered for sale globally through the various bank’s branches.

Azzam stated that one of the problems that the Arab capital markets face is the lack of market makes that decreases velocity, “so the system at DIFX is the market maker system.”

“We expect to have 20 companies to be listed by the end of the year,” Azzam declared.

Chief Operating Officer at DIFX, Nasser Alshaali, who also spoke at the event, commented: “This is an excellent opportunity to learn about the DIFX value proposition as a magnet for international investors as well as a forum for raising capital.

“It included details of how brokers can connect to the market and how companies can issue products. The exchange is preparing for many more listings in coming months,” he added.

The exchange is new, started less that a year ago, and it intends to be the premier international exchange in the Middle East, filling the vacuum between London and Singapore/Hong Kong, according to Managing Director Fadi Ghosaini, head of Business Development.

Ghosaini told The Star, “DIFX does not compete with existing exchanges in the region, it complements them.”

To get listed in DIFX, a company needs to pass a number of conditions. “Accurate financial statements and audit reports for three consecutive years, evidence of good corporate governance, accurate corporate information in a timely manner to everyone at the same time, and a market cap of $50 million,” said Ghosaini.

DIFX offers a range of financial products: Equities including initial public offerings (IPOs); secondary listings; depositary receipts (DRs) and rights issues; bonds; funds; Islamic products including sukuks (Islamic bonds); Islamic funds; certificates and index products. Index products include index certificates, warrants and notes based on tradable indices tracking the local, regional and global markets. Index futures and options will also be introduced, and derivatives will be introduced soon after.