DUBAI, 27 September 2005 — The Dubai International Financial Exchange (DIFX) was launched yesterday with the execution of a trade transaction for Investcom Securities. The DIFX, owned by the Dubai International Financial Center Authority (DIFCA), aims to become the main exchange in the Middle East region for equities, bonds, Islamic products, funds, index products and derivatives.

The target areas of the DIFX for seeking issuers include the Gulf Cooperation Council (GCC) states and the rest of the Middle East and North Africa, as well as South Africa, Turkey, Central Asia and the Indian sub-continent.

DIFC Authority’s Director-General Omar Bin Sulaiman said at the launching event: “This is an historic day for Dubai, the Middle East and the entire region that the DIFX will serve. The exchange will be a catalyst for economic growth and prosperity. It will strengthen the ties between the countries of the DIFX region, as well as between the region and the rest of the world.”

The DIFX market opened with the listing of five Deutsche Bank securities. These are index tracking certificates, which will cover the US S&P 500, the German DAX 30, the Japanese Nikkei 225, the EuroStoxx 50 and the Stoxx 50. The new exchange opened with four member banks — CSFB (Europe) Ltd, Deutsche Bank AG, HSBC Bank plc and UBS AG. Deutsche Bank is first to list products on the new bourse. The DIFX expects to have up to 40 members by the end of 2006, including many leading international and regional investment banks. It also expects its issuer base to be the most international in the world, drawn from many countries and with no single country predominating.

Investcom will be relocating from Luxumborg to Dubai, according to its Chief Executive Azmi Kikati. Investcom has announced its intention to become one of the first companies to list on the DIFX. Its initial public offering will be the first of 10 to 15 that the DIFX believes may be brought to its market by the end of 2006, by companies based in countries across its region and beyond.

“The DIFX will bring international investment into regional securities on an unprecedented scale. By tapping into this investment, regional companies can obtain the capital they need to grow,” said DIFX Chairman Lynton Jones.

“The DIFX’s focus in its first months will be to demonstrate that its market is reliable and efficient. This period will enable issuers, members and investors to understand the way the exchange operates and its many attractive features. These include being the first exchange in the region to make use of market makers to provide liquidity,” said DIFX’s Chief Operating Officer Nasser Al Shaali.

Dubai-based Daman Securities has become a broker along with Shuaa Capital whhich will also be a clearing agent. “DIFX represents a perfect gateway for channeling the region’s abundant liquidity and will help companies penetrate the currently untapped GCC capital markets,” said Daman Securities Managing Director Shehab Gargash.

The DIFX expects raise around $2 billion through initial public offerings by the end of 2006.

“We expect IPOs over this period to raise a couple of billion dollars,” DIFX Chief Executive Steffen Schubert told reporters, referring to the end of next year. Dubai hopes the DIFX will transform it into a major financial hub like Hong Kong. It has also set its sights on foreign companies listing there to raise funds in the world’s biggest oil-producing region.