“The costs of operations were too high considering the current state of the market” and low trading volumes, said Emad Eldin Abbas, operations manager at IFA. The company plans to reopen in a year, after having combined with another brokerage, Abbas said. IFA has 13 employees.
Dubai’s benchmark stocks index has plunged more than 80 percent from its record in 2005. About 43 million shares traded in the emirate today, compared with a six-month daily average of 190 million. Eleven brokerages in the United Arab Emirates have either shut this year or are in the process of closing, The National newspaper reported in June, citing the market regulator.
International Financial shares rose 3.3 percent to 47.5 fils in Kuwait City today.