TNI says tighter UAE market control is improving disclosure habits, but data is inconsistent

The National Investor launches new results publication calendar to help investors in market short on information Abu Dhabi, UAE, 17th October, 2006: Abu Dhabi-based investment firm, The National Investor (TNI), said today that tighter control over stock market listed companies in the UAE is producing improved disclosure habits, but the quality of information released remains inconsistent. TNI said the threat of fines imposed by the Emirates Securities and Commodities Authority for failure to publish quarterly results within the legal time limit has resulted in more companies now issuing results on schedule.

But TNI emphasizes that corporations still need to improve the quality of the information they reveal to help investors hindered by a general shortage of data in the UAE market.

This is revealed in a TNI market insight strategy report published today to introduce the firm’s new results publication calendar, unique to the UAE. Entitled “Third Quarter Results Calendar”, the report is available on the company’s website at According to TNI research, the proportion of companies abiding by ESCA rules and publishing 16 to 30 days after the close of the period increased significantly since the beginning of 2006.

On aggregate 75% to 80% of the companies have published within the 30-day period in the first half of 2006, up from 60-70% in the corresponding period last year.

Amer Halawi, TNI’s Director, Securities, said: “This is a good illustration of two factors – that the ESCA has been exerting tighter control by imposing fines on companies which don’t publish on time, and that such market regulation enforcement does contribute to better disclosure habits.” But Halawi added: “The quality of disclosed information is still very uneven. Some companies publish bare headline figures while others give out full details and accounts. Corporations still need to improve disclosure content.” TNI has introduced its own UAE results calendar to provide investors with early notice of corporate publication dates in a maturing market characterised by a scarcity of data.

“Results publication calendars are important tools for investors but still uncommon in the UAE,” said Halawi. “TNI has attempted to compile its own results calendar by collecting company information from the past six quarters.” He added: “The purpose of the report is to extract trends about quarterly results disclosure in the UAE, present the TNI prospective results publication calendar for 91 companies in the UAE, and highlight the importance of results pre-announcements to UAE investors and issuers.”

About The National Investor: The National Investor (TNI) is a leading regional investment and merchant banking firm with a distinguished track record in investment banking, private equity, real estate and asset management. The firm is a Private Joint Stock Company headquartered in Abu Dhabi and is the leading arranger of public share offerings in the UAE and the GCC.

TNI is the first UAE based investment firm to be awarded a license to operate in the Dubai International Financial Exchange (DIFX). The firm was ranked as the leading equity house in the UAE by Euromoney magazine in 2006 and 2005. Further information on TNI can be obtained from its website