Arab stock markets have regained 30.89 per cent of the losses they suffered as a result of the global financial crisis, according to the Secretary-General of the Arab Federation of Stock Exchanges.

Dr Fadi Khalaf Amin said the Arab exchanges had regained the least among exchanges around the world. The best performing markets had climbed by 58 per cent while the average was 48.9 per cent.

Arab markets last year lost all the gains they had made in the previous four years, he said. At the peak of the crisis their losses were running at $750 billion (Dh2.75 trillion).

"In Arab financial markets, we have very good investment opportunities and they attract investment," he said.

Amin said the markets had failed to regain more of their losses because the real estate sector in the Arab World had not recovered as quickly as it had in better-performing markets. Another factor was oil prices remaining below $100 per barrel.

He said the Arab markets were still attracting foreign investment and highlighted the role played by some Arab exchanges, especially those of the UAE.

"We still have good investment opportunities and they should be exploited," he said.

The ADX had gained about 32 per cent since the beginning of the year, making it one of the best performing markets in the region.

Amin said about $62.7trn had been lost on world financial markets as a result of the global financial crisis, adding that the market value of the world's exchanges had gone down by about $30trn.

The Arab exchanges needed protection from future financial crises, he said. The provision of such a shield would require improved controls and greater disclosure and transparency.

Tight procedures should be followed by exchanges in times of crisis such as checks on the extent of declines and defining the circumstances that might lead to the closure of a market, Amin said.

"Current legislation and mechanisms need to be developed and we should enact preventive legislation and raise investors' awareness," he said.

"The 1929 economic crisis lasted 38 months and the most difficult period in such a crisis is the first two-thirds of its duration. Nobody knows when the current crisis will end."

Amin was addressing a meeting of the federation and brokerage companies operating in the UAE. The event in the capital was organised by the Abu Dhabi Securities Exchange.

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