Makaseb Islamic Financial Services to close

Makaseb Islamic Financial Services, an Abu Dhabi-based brokerage, put in a request with the UAE’s market regulator to freeze operations for a year after volumes and stocks slumped, said its managing director.

“The decision was taken mainly due to the drop in market liquidity, which has affected the industry drastically,” Hatim El Atabani said in an interview on Wednesday. “We thought it would be unwise to continue operations and incur losses, especially when we don’t see turnaround happening soon.”

The volume of shares traded in Abu Dhabi has plummeted to a daily average of 62 million so far this year, the lowest since the same period in 2006. The ADX General Index of 66 stocks has slumped 59 per cent since reaching a record of 6,237.98 in May 2005.

Makaseb was ranked among the country’s top 12 brokerages in 2007, El Atabani said in a phone interview from Abu Dhabi.

The company reduced its workforce by as much as 60 per cent in the past year to cut costs and plans to reopen in a year, he said.

Eleven UAE brokerages have been either shut this year or are in the process of closing, media reports said in June, citing the market regulator.

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