Mubasher Financial Services, the third biggest stockbrokerage in the UAE, warned the industry was headed for further consolidation as trading activity slides amid market turmoil.
Mubasher said it expected lower revenues after traded value on the Dubai Financial Market steadily dropped from Dh72.9 billion in January 2013 to Dh46.3bn in December 2014.
“We have to adjust the budget this year, everybody has to,” said Abdel Malik Kanawati, the chief executive at Mubasher, which traded Dh3.73bn on the DFM in December.
“The market is over-brokered, and those companies whose clients are mostly retail investors are going to be affected.”
Today there are 48 brokerage firms in operation, compared with 103 in 2010.
The capital markets industry was finally getting a reprieve after years of low volume, consolidation and layoffs. Brokerage companies finally turned the corner and statements showed they were becoming profitable.
Companies that had considered shutting down in 2013 decided to keep their operations running after a spike in volume at the beginning of last year, said Fathi Ben Grira, the chief executive at Menacorp, the top ranked brokerage on the DFM in 2014.
“The volumes we had in the first and second quarter of last year gave hope to a lot of brokerages. They invested, they tried to recruit, they thought they could survive,” Mr Ben Grira said. “The large companies have economies of scale, can generate profit, but for the smaller players, it will be tough.”
UAE stock brokerages made a profit of Dh151 million in the third quarter of last year, according to financial statements on the regulator’s website, compared with a profit of Dh99.69m in the third quarter of 2012.
Investors threw UAE markets into turmoil in the past two months as Brent crude has fallen near $45 a barrel from an average of $85 in October.
The Abu Dhabi Securities Exchange General Index has declined 12.1 per cent since October, while the Dubai Financial Market General Index has dropped 24.4 per cent in the same period.
halsayegh@thenational.ae
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David Haye record
Total fights: 32
Wins: 28
Wins by KO: 26
Losses: 4
What you as a drone operator need to know
A permit and licence is required to fly a drone legally in Dubai.
Sanad Academy is the United Arab Emirate’s first RPA (Remotely Piloted Aircraft) training and certification specialists endorsed by the Dubai Civil Aviation authority.
It is responsible to train, test and certify drone operators and drones in UAE with DCAA Endorsement.
“We are teaching people how to fly in accordance with the laws of the UAE,” said Ahmad Al Hamadi, a trainer at Sanad.
“We can show how the aircraft work and how they are operated. They are relatively easy to use, but they need responsible pilots.
“Pilots have to be mature. They are given a map of where they can and can’t fly in the UAE and we make these points clear in the lectures we give.
“You cannot fly a drone without registration under any circumstances.”
Larger drones are harder to fly, and have a different response to location control. There are no brakes in the air, so the larger drones have more power.
The Sanad Academy has a designated area to fly off the Al Ain Road near Skydive Dubai to show pilots how to fly responsibly.
“As UAS technology becomes mainstream, it is important to build wider awareness on how to integrate it into commerce and our personal lives,” said Major General Abdulla Khalifa Al Marri, Commander-in-Chief, Dubai Police.
“Operators must undergo proper training and certification to ensure safety and compliance.
“Dubai’s airspace will undoubtedly experience increased traffic as UAS innovations become commonplace, the Forum allows commercial users to learn of best practice applications to implement UAS safely and legally, while benefitting a whole range of industries.”
How it works
1) The liquid nanoclay is a mixture of water and clay that aims to convert desert land to fertile ground
2) Instead of water draining straight through the sand, it apparently helps the soil retain water
3) One application is said to last five years
4) The cost of treatment per hectare (2.4 acres) of desert varies from $7,000 to $10,000 per hectare
Election pledges on migration
CDU: "Now is the time to control the German borders and enforce strict border rejections"
SPD: "Border closures and blanket rejections at internal borders contradict the spirit of a common area of freedom"
