CAIRO, June 9 (KUNA) — Most Arab stock markets suffer from a low ratio of stock transaction volume to Gross Domestic Product (GDP), with the exception of Kuwait where the volume has reached 62.9 percent, said Egyptian Foreign Trade Ministry researcher Hussein Al-Asraj.
Speaking to Kuwait News Agency (KUNA), Al-Asraj said that the volume in the Egyptian market is 7.1 percent, stressing the importance of activating stock markets through encouraging the establishment of Arab investment funds.
He noted that financial resources may be limited in most Arab states to an extent that prevents the establishment of low-risk funds. He therefore called for employment of Islamic financing formulas to attract a good number of investors and increase market efficiency.
Al-Asraj said that creating and developing financial tools is important in order to ensure growth of a unified Arab stock market, adding that Islamic financing methods directly link savings to investment through effective channeling of savings.
He added that establishing funds would provide greater diversity for both small and major investors. He also urged more action in bonds activities as the field holds around 70 percent of the action in most world markets compared to a very modest stake in Arab markets.