The Dubai International Financial Exchange is in talks with the London Stock Exchange on a range of issues such as technology sharing and cross listing, including the possibility of the Dubai entity acquiring a stake in the LSE, Emirates Today reported on Saturday.
The talks are at an exploratory stage, the newspaper said, pointedly stating that its unnamed source was based in London.
Nasser Al Shaali, chief executive of the Dubai exchange, told Emirates Today that his institution is “in talks with a wide array of authorities” across the world.
“A majority of them are listed,” he added, explaining that he was therefore unable to reveal details.
Last week Mr Al Shaali reportedly said the Dubai exchange would spend “in excess of $2 billion” on acquisitions this year, including a stake in a Western European financial services company. “Our acquisition strategy is inclusive of stock exchange companies,” he told Emirates Today at the weekend.
Later, the Observer reported that the LSE was amongst six parties which Dubai officials say have expressed an interest in acquiring a stake in the Dubai exchange.
A pact between the LSE and Dubai would put London in pole position for secondary listings of Dubai companies which the Gulf state intends to partially privatise in the next 18 months, the report noted.
First on the block could be DP World, the Dubai group that paid nearly £4bn for P&O, the British ports operator two years ago. Emirates, the airline which sponsors Arsenal’s new football stadium, would probably be next, followed by the Jumeirah hotels and leisure conglomerate.