The recent resurgence of Dubai’s Financial Market’s (DFM) general index (it has fallen 61% since last summer, but is up 42% since March and roughly 28% YTD)–coupled with tighter lending standards–will likely cause more firms to publicly float their shares, surmised Essa Kazim, executive chairman of Borse Dubai.  Firms are historically reticent to utilize capital markets, especially under distressed conditions.  Yet because it may be the only source of long-term financing, their hands will be forced.  Moreover, Kazim told Reuters that “a priority would be to attract listings to diversify the DFM away from the dominant and closely-connected banking and real estate sectors.”

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