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Honored Guests
Good morning ladies and gentlemen.
Thank you very much, and thanks to Mr. ERKAN for managing this event.
Welcome to Iran.
This is of our great pleasure deeply honored to host this event, which is aiming at a valuable and important objective: enhancing cooperation among the Islamic countries' Exchanges.
This gathering, as you know is held to discuss about the significant issues of establishing an Exchange of the Islamic countries to help us to integrate more than ever before.
In the last two decades while our markets all have their unique histories and have evolved in different ways the core trends and development and challenges are the same.
First, our markets have grown in size and, complexity, such as numerous financial Innovations, instruments participants.
Second, our markets have become democratized and easy access to all markets were provided. Investors, members have become aware that all have effective saving plans for major life events and retirements must include meaningful investments in equities.
Third, the creativity and competitiveness of the securities industry has led securities markets worldwide to respond to opportunities increased capital demands and competition by shifting from membership organizations to public corporations also mergers, integrations and regional alliances have occurred among countries securities markets, and International exchanges have been established.
Such partnership could be very advantageous for the members, if the required prerequisites are considered such as enhancing and developing the markets; facilitating finance; harmonizing the accounting and financial procedures; and facilitating the capital flow.
At this point, the Islamic countries with large population, high potentials and competence are rather far from these advancements, despite the fact that some of them enjoy well-established exchanges. Significant parts of the global natural resources belong to these areas, and many of the Islamic countries are in the process of industrialization. Valuable human and natural resources, as well as common religious views are the main incentives for closer relationship between the Islamic countries; we can also refer to the successful experience of Islamic Development Bank for launching new similar entities, including an Islamic securities exchange.
So, we are first to deeply study the issue and then make firm steps in order to establish a common Islamic securities exchange among our countries. To do so, it is necessary to examine the challenges and consider the existing experiences, so that the process will be accomplished.
With reference to the current financial crisis and the failure of some conventional financial instruments, it seems appropriate to focus on the Islamic economic and financial perspective and apply the newly launched Islamic financial products, like sukuk. This can turn into a new global strategy. No doubt, the problems and complexities exist and should be dealt.
Here, I confirm that Tehran Stock Exchange, as one of the oldest exchanges in the region is prepared for such cooperation. In the last year, despite the economic crisis in the world, TSE market capitalization moved up to 50 billion US dollars and the number of listed companies, including 6 IPOs, reached to 360 which are classified in 37 diversified group.
Finally, I hope this and further meetings will bring profitable outcomes to reach a practical result for partnership of the Islamic countries in their financial markets to launch the Islamic securities exchange.
Thank you all again, and I wish you all the best.
