Al Ramz Capital, a subsidiary of Al-Ramz Corporation Investments and Developments PJSC, has been appointed as a Liquidity Provider for Emirates REIT’s shares after coordinating with Nasdaq Dubai and DFSA.
This appointment makes Al Ramz Capital a leading Liquidity Provider across all UAE exchanges: DFM, ADX and Nasdaq Dubai.
A Liquidity Provider is appointed by a company with the sole objective of enhancing the liquidity of the underlying shares and increasing the frequency of transactions. The Liquidity Provider is independent of the company and has complete autonomy over trading. The Liquidity Provider will transact within pre-defined parameters that are agreed with the company. Some of the potential benefits to the issuer are an increase in price stability, lower trading costs, a reduction in the bid/offer spread, an increase in trading volumes and the potential to increase the valuation metrics.
Al Ramz Capital will perform its duties as a liquidity provider through a specialised department, which is made up of equity professionals with over 30 years equity market experience between them. This department will determine the optimal liquidity level of the company’s shares, given the market price and underlying supply and demand observed. The Liquidity Provider will also be responsible for maintaining bid and offer spread, which will in turn provide investors with optimal entry and exit price levels in order to better manage their portfolios.
“This is the fifth liquidity providing agreement signed by Al Ramz Capital and the first on the Nasdaq Dubai. Al Ramz now has expertise providing liquidity across all exchanges in the UAE which demonstrates our strength in the market and the increased confidence in our capabilities. Emirates REIT offers an excellent way for investors to access real estate market exposure in the UAE and we are very happy to be facilitating this process. This is