Stock brokers in the United Arab Emirates are struggling to make ends meet as trading volumes tumble to the lowest in four years, forcing some to close.
The number of brokerages in the country may drop to as low as 55 from 81, according to Shuaa Securities LLC, the brokerage unit of the U.A.E.’s biggest investment bank. Twelve firms, from Abu Dhabi-based Makaseb Islamic Financial Services to Dubai- based IFA Securities LLC, filed requests to the Securities and Commodities Authority to halt operations this year as costs rose and revenue fell. Seven shut or suspended operations last year and three in 2008.
The average daily volume of shares traded in Dubai has slumped to 173 million so far this year from 477 million in the year-earlier period.
I have mentioned many times how volume has just disapeared. Bull markets die in low volume. However, I wonder if there isn't something more going on? If worldwide the interest to invest, to speculate, isn't slowly dying? I have no idea. Just hypothesisizing.