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Somalia stock exchange

08-15-2012 02:40 BJT

Somalia hopes to soon establish a Nairobi based Securities Exchange Market, following the signing of an agreement with the Kenyan bourse. The Nairobi Securities Exchange is expected to feature both Somali corporations and regional multinationals. CCTV's Mohamed Hirmoge expounds on that story

An agreement signed with the Nairobi securities Exchange for provision of expertise and support lays the foundation for an expected start of the first ever Stock Exchange Market for Somalia. Idd Mohamed, a deputy permanent representative to the United Nations is the brainchild of the grandiose initiative and has signed the agreement with neighboring Kenya's NSE market to partner in the formation and development of Somali Stock Exchange Investment Corporation.

Abdirizaq Mohamed, Operations Manager, Dahabshiil Bank, said, " Principally i think it is a good idea, but considering some factors, looks like we are not yet ripe for a stock Exchange Market. The fact that Somalia Stock Exchange Market will be based in Nairobi is an indication that maybe we should have waited a little longer."

Ibrahim Mohamed, Simad University , said, "The fact that this Market is Sharia compliant must be endorsed, must be stated clearly and people should go back to scholars for direction."

Somalia's Telecom, banking and money transfer corporations have all thrived amid the two decade turmoil and are expected to list their shares on the bourse index. The Somalia Stock Exchange would trade in Shariah compliant Sukuk bonds and Halal equities. Sukuk securities are structured to comply with the Islamic Shariah and investment principles that prohibit charging or paying of interest.Regional breweries and gambling companies may not feature in the Stock Market, the Islamic Shariah considers gambling and breweries non Halal equities.

One of the Private owned companies that has thrived in the midst of the 21 year civil turmoil in Somalia is Hormuud Telcom company. A mobile service provider that has attracted millions of subscribers in all the Somali regions. It is expected to be among the first to feature in the Stock Market.

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Editor:James |Source: CCTV.com

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