Abu Dhabi - Arabstoday
The UAE has done enough to warrant an upgrade by index compiler MSCI Inc to emerging market status from frontier status, the head of the country\'s securities and commodities authority, or SCA, said yesterday. Abdullah Al Turaifi told reporters in Abu Dhabi that he was expecting a positive response from MSCI when its decision is made public on June 21. \"The UAE has complied with all the conditions required from it and we are waiting hopefully for a positive reply in the coming short period,\" he added. The UAE stock market, along with Qatar\'s, is currently under review by MSCI for possible upgrade. Many analysts say the two frontier markets have satisfied most of MSCI\'s requirements for an upgrade, but say much will also depend on the demand for such a move by foreign investors and fund managers. Turaifi said stock markets in the Gulf Cooperation Council, or GCC, region are witnessing signs of recovery, especially in the UAE. \"There are investments and flow of liquidity,\" into UAE and GCC markets. \"Had there been no recovery or a good start you wouldn\'t have seen new listings or IPOs,\" he added. Turaifi noted there have been three IPOs, or initial public offerings, so far in 2011 in the UAE and \"hopefully there will be more\", he said. He declined to identify any possible IPO candidates. The Middle Eastern market for IPOs slumped to its lowest level in five years in the first quarter of 2011, Ernst & Young said late last month.