Al Ramz Capital gains short selling licence

UAE brokerage Al Ramz Capital has received a licence to offer short selling on the Abu Dhabi Securities Exchange.

The exchange says it has granted the technical short-selling licence as part of an effort to increase market turnover, improve liquidity and attract more foreign investors.

Mohammad Al Mortada Al Dandashi, managing director of the broker’s parent company, said short selling could help balance trading forces in the market.

“Such tools play an essential role in improving market efficiency and represent an effective way for specialised institutions to develop hedging strategies, as well as structured products,” he said.

Short selling is a way to invest in a security such that the investor profits if the security falls in value.

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