In early 2000, the first official stock market was opened for trading on the floor of the Dubai Trade Center.  As of yet, there are no information technology-related companies being traded.  Prior to this, an unofficial stock market called a grey, or parallel market, was in place.  One of the primary decisions that the government is facing regarding the introduction of the stock market is the role that foreign investors will be allowed to play. 

Government:
The government plays a very significant role in the UAE financial marketplace.  In terms of telecommunications, the government owns 60 percent of ETISALAT.   The other 40 percent is owned by private investors in the UAE; however they have little to no say over the direction that ETISALAT will go.  In 1998, a net profit of almost $700 million was recorded.   Sources estimate that ETISALAT will invest $1.23 billion over the next two years to continue developing its services.  However, the amount of government support (either direct or indirect), if any, that will be received is unknown. 

Furthermore, in terms of the government's role in IT financing the government has been very supportive of Dubai Internet City (DIC).  In fact, the initial infrastructure, costing over $700 million, will be funded entirely by the government.  Private investors may be able to take part in the future however this is not guaranteed yet. 

The government of the UAE also owns the Dubai Stock Market, the only stock official stock market in the UAE.   The Dubai Stock market was established by the government as a public institution having its own independent corporate body (21).

Stock Market (History):
In 1997, the first steps toward an official stock market were taken when the Emirates Bank Group established a mutual fund that was open to foreign investment.  The fund, Emaar Properties, only covered stocks valued at $178.9 million; however, offers worth almost $920 million were made.  This shows that there is a definite interest in a stock market.  For the Emaar Properties Mutual Fund, foreign investment was approved; however, only 20 percent of the value of the fund was allocated for foreign investment.  Sales to foreigners are suspended when the percentages reach 20 percent.   Numerous disagreements exist as to whether or not to allow foreign participation, and the extent thereof, in a fully operational stock market.

The government approved preliminary plans in October 1999 for the establishment of a bourse in Dubai. Then, in December, it was announced that the stock market would use an electronic trading system that would fully disclose amounts of stocks in order to encourage market stability.  In early 2000, the Dubai Financial Market officially opened up for trading in securities only.  Initially, the Dubai Financial Market will operate as a secondary market for trading of securities issued by public shareholding companies, bonds issued by the local or federal government, public institutions,  and financial and investment institutions.  From the website on listed companies on the stock exchange it appears that only 12 companies are listed.  Currently, it does not appear as though any technology-related firms are traded (22). 

Private Investors:
Although the government has funded the entire infrastructure of Dubai Internet City private investors may be able to take part in the future.  In fact, it will be imperative that private investors be allowed to participate in order to encourage diversification and new ideas.  Limiting the inclusion in investment opportunities could potentially limit interest.  Dubai Internet City presents an interesting opportunity for private firms.  For example, in late May 2000, Hewlett-Packard and Middle Eastern corporate advisory firm Chescor, announced that they would launch a joint venture Internet funding program worth $100 million in Dubai Internet City.  The purpose of this joint venture will be to promote information technology ventures in the UAE.  The program will focus on business-to-business communications.  This type of investment by foreign companies is encouraged in the UAE (20). 

In the free trade zones, private businesses are free to start information technology companies for capitalist gain.  Investments by foreign companies in the information technology sector have been virile.  Please refer to Hardware Manufacturing and Software Development for specific information regarding private investment in IT financing of the hardware and software markets.