Stefan Zapotocky, member of the management board of Wiener Börse AG, and Essa Kazim, chairman of the Dubai Financial Market, signed a Memorandum of Understanding on Tuesday, 17 May 2005. "The cooperation agreement is the founding stone for closer cooperation between the two exchanges in the future. The objective is to work together closely especially in the area of index management", explained Stefan Zapotocky. The initiator of the agreement was Bank Medici, which contributed substantially to achieving this agreement. Currently, there are 122 companies listed on Wiener Börse and market capitalization was EUR 74.4bn at the end of April 2005.
Market capitalization of the Dubai Financial Market, which was founded in the year 2000, has been growing fast ever since: From a market cap of some EUR 14bn at the end of 2003 it grew to around EUR 33bn at the end of 2004 and now boasts EUR 44bn. Currently, there are 21 companies listed on the Dubai Financial Market mainly from the banking and insurance sector; a total of 20 initial public offerings are expected for 2005.
"The Dubai Financial Market has positioned itself within a very short period as a leading exchange in the region as regards performance and activities. We are pleased to sign our first Memorandum of Understanding in the continent of Europe with Vienna Stock Exchange, wishing that this Memorandum of Understanding will revive as a cornerstone in developing our relationship for the mutual benefits of both parties and the financial services in our countries", said Essa Kazim, Chairman of the Dubai Stock Exchange.
The future closer cooperation of the two financial markets is in line with the economic relations between Austria and the Arab region: In the previous year, Austria exported goods with a value of EUR 213mn to the United Arab Emirates, which is an increase of around 13% vs. 2003. Machinery and vehicles are among Austria’s most important export goods. However, imports were low in comparison: In the previous year, Austria imported goods worth EUR 7.8mn from the United Arab Emirates.
In addition to the Dubai Financial Market, Wiener Börse entered into cooperation agreements with the exchanges in Shanghai and Bucharest in 2004. A Memorandum of Understanding has also been signed by the Dubai Financial Market and the Malaysia Stock Exchange.