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Brokerage to open in United Arab Emirates
Real estate news By Darla Mercado
October 1, 2007
HSBC Holdings PLC of London will launch a brokerage in the United Arab Emirates — the first international bank to do so, the Financial Times reported. The firm, HSBC Middle East Securities, will give institutional investors access to the Abu Dhabi Securities Market, as well as the Dubai Financial Market, according to FT.
Hedge funds are drawn to Middle Eastern markets on the theory that oil is safe from the problems plaguing credit and global markets, FT said. HSBC has 10 dealing rooms in the area, which focus on Saudi Arabia, Pakistan, Egypt and other larger markets. HSBC Middle East Securities is talking to local regulators to secure brokerage licenses and do business outside of the UAE, said the new firm’s CEO, Irfan Muzzammil, to FT.
In accordance with local law, the London-based bank has launched the firm with a local partner that owns a 51% stake in the firm. If and when the government passes a law that allows greater foreign ownership of companies, HSBC Middle East Securities will raise its legal ownership to the highest level possible, Mr. Muzzammil said to FT.
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