Securities markets and protection of small investors in public shareholding companies of United Arab Emirates

Abstract

Purpose

The purpose of this paper is to review the laws in relation to the role of the securities markets in protecting small investors and examine legal cases that have recently been observed in this area.

Design/methodology/approach

A research-based qualitative analysis was undertaken to determine the governing authorities on the subject of international trade contracts globally. Various internet searches were conducted and information was collected to represent the subject at large and to the best and most current understanding. The information was assessed in its joined context to prepare recommendations for best practice.

Findings

In the United Arab Emirates (UAE), the rights of small investors in public shareholding companies are protected through many different legal stipulations that all must adhere to in order to offer stock. Through an examination of the laws of the UAE in relation to securities markets’ roles and responsibilities, a clear picture of protection is created that ensures small investors’ risks are minimized. In this regard, the UAE has implemented additional regulations in comparison to any other country as evident through the Doing Business Report (2014).

Research limitations/implications

The review of available documents is limited to UAE and hence cannot be generalized into a broader context.

Originality/value

This paper work contributes the research about the existing conditions of securities markets of protected small investor in UAE stock exchange market as serious as that of protecting the national economy.

Citation

Jaradt, N. (2019), "Securities markets and protection of small investors in public shareholding companies of United Arab Emirates", Qualitative Research in Financial Markets, Vol. 11 No. 1, pp. 73-80. https://doi.org/10.1108/QRFM-06-2018-0080