It also provides a hundred percent subsidiary which makes it possible to give

It also provides a hundred percent subsidiary which

This preview shows page 3 - 5 out of 13 pages.

in the financial sectors which has played a critical role in the economy. It also provides a hundred percent subsidiary which makes it possible to give the required financial support to the both financial firms and citizens. Through issuance of securities, the firms borrow from these non-financial institutions in order to finance their activities regularly. This is focused to boost the availability of funds in the financial markets hence increased access to credit (UAE, 2017). The UAE government is also an important player in the financial market. Through the Central bank of UAE, the government issues securities and bonds which have different maturity dates to control the market prices of items. The participation of the government in the financial market is aimed at controlling the money supply in the economy hence price and economic stability. With the federal reserve of UAE, it has been possible to participate in the international markets as the UAE currency has been stable in recent years. This has made it possible to trade successfully in the international market. Locally, the government controls the foreign exchange rate of UAE to reduce the risk of devaluation in respect to the international markets (UAE, 2017). Through the government owned investments like Aaabar
Image of page 3
UNITED ARAB EMIRTAES FINANCIAL MARKET 4 investments, creative city, DP world, Dubai Inc, Arab Television Network, it has been possible to generate revenue which is vital to the growth and development of the UAE economy. With the need to improve its financial markets, the government of UAE has imminently partnered with foreign nations in order to boost its economic growth. It has partnered with United States in its foreign direct investment in various countries in United States hence making it possible to expand its markets. Through the Dubai International Finance Centre (DIFC) and the Abu Dhabi foreign investment the country has improved its foreign investment by creating more wealth. Through financial institutions, the country has been able to conduct immense business activities with foreign nations which has improved its participation in the foreign markets (UAE, 2017). The Depository institutions have played a critical role in enabling the improvement of the financial sector in United Arab Emirates. Some of the important financial institutions in this sector include banks, savings, credit, commercial and trade Unions. These depository institutions has not only focused on the keeping savings for the citizens but it has offered a range of activities (UAE, 2017). Significantly, it has created liquidity in the UAE economy, it has minimized the cost of getting funds as well as the monitoring cost of investments. It has also pooled risks which have been spread successfully though too many firms. Through the International Bank of Abu Dhabi, Emirates NBD, Abu Dhabi commercial Bank, Mashreq, Union bank international, RAKBANK and the Dubai bank, it has become possible to provide financial services not only to the locals but at international levels. This has really improved the liquidity within the UAE country. Moreover, the saving institutions like CBD, ADIB,
Image of page 4
Image of page 5

You've reached the end of your free preview.

Want to read all 13 pages?

  • Fall '16
  • daqaun trapgod

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes