chapter  2
22 Pages

SALIENT FEATURES OF ARAB CAPITAL MARKETS

Financial markets worldwide are rapidly becoming more integrated and thus better at allocating capital to its most productive uses. The continuing liberalization of financial markets; the trend towards securitization (and hence tradability) of financial assets; and more effective management of risks and returns through the use of derivatives are all helping to lower barriers between domestic financial markets worldwide. A more efficient global capital market should be better able to match savings in the developed world with the hugely profitable investment opportunities in developing countries.