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United Arab Emirates (UAE) Buys 20% of NASDAQ


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Today's announcement that Nasdaq is partnering with Borse Dubai to acquire the Swedish exchange OMX appears to be good news for both New York and the nation, especially because it gives our City a significant leg-up on our competitors in Europe. The deal is just the latest evidence supporting the case that our Administration has been making -Mayor Michael Bloomberg

 

“Dubai pioneered modern-day Islamic banking and is one of the major centres of innovation in Islamic finance. DIFC plays a leading role in providing an infrastructure and environment that is helping the financial sector develop. This is certainly the case in the context of Islamic finance.” - Dr. Omar bin Sulaiman, Governor of the Dubai International Financial Centre (DIFC),

 

DIFX, being a DIFC entity, is unique in the region. Its standards are comparable to those of leading international exchanges in New York, London and Hong Kong. Borse Dubai, based on DIFX's and DFM's strengths, will facilitate easier access for international and regional investors, providing for a potentially diverse investor base." - Soud Ba'alawy, Chairman and Board Member of DIFX

 

NASDAQ is the largest U.S. electronic stock market. With approximately 3,100 companies, it lists more companies and, on average, its systems trade more shares per day than any other U.S. market. NASDAQ is home to companies that are leaders across all areas of business including technology, retail, communications, financial services, transportation, media and biotechnology. NASDAQ is the primary market for trading NASDAQ-listed stocks.

 

With approximately 1.6 billion Muslims around the world, and the global market for Islamic financial services currently estimated at almost $250 billion worth of assets, this sector has also appealed to non-Muslim and ethical investors. Boasting an annual growth rate of around 15%, Islamic finance has moved from a niche market to a mainstream business and is now attracting attention from global financial institutions.

 

Founded in 1963, the National Bank of Dubai is the oldest, locally incorporated bank in the Southern Gulf. Its portfolio covers a wide range of services including transport, real estate, construction, manufacturing, tourism and service industries throughout the region. In addition, NBD's 'Private Office' provides private banking services, offering highly tailored solutions to preserve and protect the personal wealth of its customers. Along with supplying customers with a variety of exclusive service based products, secured facilities, Credit Cards, personal loans, , auto loans and home loans, the National Bank of Dubai also offers a variety of treasury products and services, advising customers on exchange markets and interest rate outlook.

 

The National Bank of Dubai works closely with Bank Melli, Irans largest State owned Bank. Bank Melli Iran 's U.A.E. operations comprise of 7 branches and 1 pay office. The branches are located in Deira Dubai, Bur Dubai, Abu Dhabi , Al Ain, Sharjah, Fujairah and Ras Al Khaimah. The pay office is located at the Iranian Hospital in Satwa. Branch Managers and Assistant Branch Managers of each branch are responsible for the day-to-day operations of each branch. Iran receives 22.4 percent of it imports from U.A.E.

 

Iran’s banking sector is notorious for its failures to comply with international anti-money laundering, fraudulent and corrupt practices, and counter-terrorism financing norms. Yet, Iranian banks continue to have broad access to, and to network through, the international financial and banking sectors. The Treasury Department recently fined the Dutch bank ABN Amro some $80 million for failing to report the processing of financial transactions involving Iran’s Bank Melli.

 

Here is NASDAQ's release:

 

NASDAQ and Borse Dubai Reaffirm Commitment to Voluntarily Submit Today's Deal for Full CFIUS Review

 

 

NEW YORK, Sept. 20, 2007 (PRIME NEWSWIRE) -- As NASDAQ announced earlier today - and as part of a series of transactions that includes a 19.99% investment by Borse Dubai in what will become The NASDAQ OMX Group, with a 5% voting rights limitation which can not be altered without SEC approval - the parties in this transaction have said they will voluntarily submit the transaction for consideration by the Committee on Foreign Investment in the U.S. When finalized, these transactions will create a global financial marketplace that will further strengthen New York City and the United States as the leading global financial center.

 

NASDAQ is the largest U.S. electronic stock market. With approximately 3,100 companies, it lists more companies and, on average, its systems trade more shares per day than any other U.S. market. NASDAQ is home to companies that are leaders across all areas of business including technology, retail, communications, financial services, transportation, media and biotechnology. NASDAQ is the primary market for trading NASDAQ-listed stocks. For more information about NASDAQ, visit the NASDAQ Web site at http://www.nasdaq.com or the NASDAQ Newsroom at http://www.nasdaq.com/newsroom/.

 

Cautionary Note Regarding Forward-Looking Statements

 

Forward-looking statements relating to Borse Dubai's offer for OMX.

 

This press release may contain forward-looking statements. These statements as they appear throughout this press release are not guarantees of future performance and are subject to inherent risks and uncertainties. Forward-looking statements may be identified by the fact that they do not relate strictly to historical or current facts and include, without limitation, words such as "may," "will," "expects," "believes," "anticipates," "plans," "intends," "estimates," "projects," "targets," "forecasts," "seeks," "could," or the negative of such terms and other variations on such terms or comparable terminology.

 

Forward-looking statements include, but are not limited to, statements about the expected future business of Borse Dubai and its subsidiaries and OMX resulting from and following the Borse Dubai's offer for OMX, statements about the benefits of Borse Dubai's offer for OMX, the transactions contemplated by NASDAQ's agreements with Bourse Dubai and OMX, the proposed business combination transaction involving NASDAQ and OMX, including estimated revenue and cost synergies, the combined group's plans, objectives, expectations and intentions, the proposed uses of proceeds from the sale of the LSE stake and other statements that are not historical facts. These statements reflect Borse Dubai management's current expectations based upon information currently available to them and are subject to various assumptions, as well as risks and uncertainties that may be outside of their control, including but not limited to the effect of changes in general economic conditions, the level of interest rates, fluctuations in product demand, competition, technological change, employee relations, planning and property regulations, natural disasters and the potential need for increased capital expenditure (such as resulting from increased demand, new business opportunities and deployment of new technologies). Actual results could differ materially from those expressed or implied in such forward-looking statements. Any such forward-looking statements speak only as of the date on which they are made and Borse Dubai does not undertake any obligation to update or revise any of them, whether as a result of new information, future events or otherwise.

 

Notice to OMX shareholders

 

While the Offer is being made to all holders of OMX shares, this document does not constitute an offer to purchase, sell or exchange or the solicitation of an offer to purchase, sell or exchange any securities of OMX or an offer to purchase, sell or exchange or the solicitation of an offer to purchase, sell or exchange any securities of NASDAQ in any jurisdiction in which the making of the Offer or the acceptance of any tender of shares therein would not be made in compliance with the laws of such jurisdiction. In particular, the Offer is not being made, directly or indirectly, in or into Australia, Canada, Japan or South Africa. While NASDAQ reserves the right to make the Offer in or into the United Kingdom or any other jurisdiction pursuant to applicable exceptions or following appropriate filings and prospectus or equivalent document publication by NASDAQ in such jurisdictions, pending such filings or publications and in the absence of any such exception the Offer is not made in any such jurisdiction.

 

Restrictions on Borse Dubai's offer for OMX

 

The release, publication or distribution of this announcement in certain jurisdictions may be restricted by law or regulation and therefore persons in such jurisdictions into which this announcement is released, published or distributed must inform themselves about and observe such restrictions.

 

The Borse Dubai offer is not being made and this press release may not be distributed, directly or indirectly, in or into, nor will any tender of shares be accepted from or on behalf of holders in, any jurisdiction in which the making of the Borse Dubai offer, the distribution of this press release or the acceptance of any tender of shares would contravene applicable laws or regulations or require further offer documents, filings or other actions in addition to those required under Swedish law, except under applicable exemption.

 

The Borse Dubai offer is not being made, directly or indirectly, by use of mail or any other means or instrumentality (including, without limitation, facsimile transmission, electronic mail, telex, telephone and the internet) in or into Canada and the Borse Dubai offer will not be capable of acceptance by any such use, means, instrumentality or facility of, or from within Canada unless an exemption from the applicable securities laws and regulations of any relevant provinces of Canada is available. Any persons receiving this press release should observe these restrictions and should not mail or otherwise distribute, forward or transmit it in, into or from Canada

 

Notice to OMX shareholders

 

While the NASDAQ offer is being made to all holders of OMX shares, this document does not constitute an offer to purchase, sell or exchange or the solicitation of an offer to purchase, sell or exchange any securities of OMX or an offer to purchase, sell or exchange or the solicitation of an offer to purchase, sell or exchange any securities of NASDAQ in any jurisdiction in which the making of the NASDAQ offer or the acceptance of any tender of shares therein would not be made in compliance with the laws of such jurisdiction. In particular, the NASDAQ offer is not being made, directly or indirectly, in or into Australia, Canada, Japan or South Africa. While NASDAQ reserves the right to make the NASDAQ offer in or into the United Kingdom or any other jurisdiction pursuant to applicable exceptions or following appropriate filings and prospectus or equivalent document publication by NASDAQ in such jurisdictions, pending such filings or publications and in the absence of any such exception the NASDAQ offer is not made in any such jurisdiction.

 

Additional Information about this Transaction

 

On August 7, 2007, NASDAQ filed with the SEC a Registration Statement on Form S-4 that includes a preliminary proxy statement of NASDAQ that also constitutes a prospectus of NASDAQ. Investors and security holders are urged to read the preliminary proxy statement/prospectus and the definitive proxy statement/prospectus when it becomes available, as well as other applicable documents regarding the proposed business combination transaction , because those documents contain, or will contain, important information. You may obtain a free copy of those documents and other related documents filed by NASDAQ with the SEC at the SEC's website at www.sec.gov. The proxy statement/prospectus and the other documents may also be obtained for free by accessing NASDAQ's website at http://www.nasdaq.com and OMX's website at http://www.omxgroup.com.

 

NASDAQ and its directors and executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies from NASDAQ stockholders in respect of the transactions described in this communication. You can find information about NASDAQ's executive officers and directors in NASDAQ's definitive proxy statement filed with the SEC on April 20, 2007. You can obtain free copies of these documents and of the proxy statement prospectus from NASDAQ by accessing NASDAQ's website at http://www.nasdaq.com.

 

Additional information regarding the interests of such potential participants will be included in the proxy statement/prospectus and the other relevant documents filed with the SEC when they become available.

 

 

Here is an August 6 release of Borse Dubai

 

Dubai Government Launches ‘Borse Dubai’

 

DIFX and DFM Join Forces to Explore Capital Markets Development Globally

 

Dubai – 6 August, 2007 – The Dubai Government announced today that it will consolidate its holdings in Dubai Financial Market (DFM) and Dubai International Financial Exchange (DIFX) into a new holding company, Borse Dubai.

 

The Government’s move is in line with the Dubai Strategic Plan 2015, and demonstrates its commitment to further position Dubai as the leading capital market in the region.

 

DIFX and DFM will continue to be regulated by Dubai Financial Services Authority (DFSA) and the Emirates Securities and Commodities Authority (ESCA) respectively. Borse Dubai will build on existing synergies between both exchanges, with improved exchange infrastructure, to better serve all stakeholders.

 

Explaining the role of Borse Dubai within the new structure, DFM Chairman Essa Kazim, who has been appointed as the Chairman of Borse Dubai, said that the company is intended to be a facilitator, allowing DIFX and DFM to explore joint opportunities for the development of capital markets in the region and in the broader context of global exchanges. He commented:

 

“Both exchanges will share best practices, maintaining operational efficiency at international standards. Borse Dubai will boost confidence among issuers, investors, and intermediaries who will benefit from a presence in both exchanges, as well as a broader and more varied range of services.”

 

Stating that DFM would continue its firm commitment to maximise value for its shareholders, Essa Kazim said:

 

“DFM’s Board and management team will continue to drive DFM’s business and execute the current growth strategies. Given the rapid transformation of capital markets around the world, it was the right time to jointly build on the synergistic opportunities provided by both exchanges and to create Borse Dubai as a platform for further growth.”

 

Dr. Omar Bin Sulaiman, Governor of Dubai International Financial Centre (DIFC) stated that the strategic alignment of DFM and DIFX is in line with the objectives of the Dubai Strategic Plan 2015 and the vision of His Highness Sheikh Mohammad Bin Rashid Al Maktoum. He said:

 

“Dubai 2015 plan seeks to position our Emirate as a global hub of a diversified economy. Naturally, a mature and well structured financial industry is instrumental for sustainable and rapid growth of such an economy. Borse Dubai is the answer and the right vehicle for this.”

 

Soud Ba’alawy, Chairman and Board Member of DIFX emphasised the new platform as a gateway to opportunities within the region as well as a bridge between East and West. He said:

 

“DIFX, being a DIFC entity, is unique in the region. Its standards are comparable to those of leading international exchanges in New York, London and Hong Kong. Borse Dubai, based on DIFX’s and DFM’s strengths, will facilitate easier access for international and regional investors, providing for a potentially diverse investor base.”

 

http://www.borsedubai.ae

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This appears to be no Congressional resistance to this merger. Here is the complete statement from Mayor Bloomberg on the Borse Dubai/NASDAQ deal

 

 

Today's announcement that Nasdaq is partnering with Borse Dubai to acquire the Swedish exchange OMX appears to be good news for both New York and the nation, especially because it gives our City a significant leg-up on our competitors in Europe. The deal is just the latest evidence supporting the case that our Administration has been making: that the globalization of financial markets is an inexorable force, and the future of Wall Street and the entire U.S. economy – hinges on our ability to harness it.

 

“This deal will extend Nasdaq's reach in both Europe and the growing markets of the Middle East and lead to higher regulatory standards in Dubai, which will improve the integrity of the global marketplace – greatly benefiting American investors and the world as a whole. Of course, like all such deals, this one should undergo all the appropriate scrutiny – but I hope that that discussion does not devolve in the kinds of demagogic attacks that could cost Americans jobs and threaten New York’s place as the financial capital of the world.”

 

http://home2.nyc.gov/html/om/html/2007b/pr336-07.html

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