1.Is cross-listing a popular strategy in Dubai? Discuss Advantages Why firms choose to cross-list Increased liquidity an increase in total trading volume and a significant decrease in home market bid-ask spreads Wider shareholder base Market integration securities of similar risk have the same expected returns when trading in two markets Corporate governance signal bonding Capital needs and growth opportunities Other benefits of cross-listing Visibility/brand awareness Cross-border acquisitions The flexibility to set up stock option plans for foreign employees 50% Disadvantages Why firms decide against cross-listing Costs One-time listing and registration fees Ongoing costs of additional reporting and disclosure Relative costs U.S. exchanges are considered prohibitively expensive by some Sarbanes-Oxley Act increased the costs of corporate governance regulations & taxations rules 3 out of 4 new DR listings in 2006 were on non-U.S. exchanges 30% Strategy Application to UAE firms- Talk about DFM and cross listing 20%