The Somali Stock Exchange (SSE) has just joined The Organisation of Islamic Cooperation Exchanges Forum (OICEF) as a corporate member and the move was highly welcomed by the host and prominent members of the club, as they see Somalia as strategic importance to the countries exchange growth. The Somali Stock Exchange (SSE) becomes the 41st member of The Organisation of Islamic Cooperation Exchanges Forum (OICEF).
The 57 member states contribute around $6.4 trillion to the world’s gross domestic product (GDP) in 2016 according to data from the World Bank, accounting for 9% of the World’s GDP.
The aim of the OICEF Exchanges Forum is to improve the Islamic financial securities product offering, with a view to learning from one another while providing strategic partnership support to other Islamic exchanges.
Historically, shares in Somali businesses have been bought and sold informally through close networks. However, economists have noted that in recent years, the emergence of various stock exchanges in African states have played a pivotal role in fostering economic and private sector growth plans. The substantial demand for capital is increasing by the day for Somali businesses, consisting of both large firms and SME’s.
According to the latest figures, over 3 billion USD flows into Somalia every year, a large stake of which is aimed solely at business.
Liquidity is an essential element of any industry, but it’s impossible to create it without a viable market, which is why the Somali Stock Exchange (SSE) was born.
The Somali Stock Exchange (SSE) is creating an entirely new securities market, where buyers of financial securities can do business with sellers in a more organised, secure and profitable way
Their aim is to create a sustainable securities market in Somalia, where holders of financial securities, bonds and buyers or investors can meet and share in long-term growth.
Murat ÇETİNKAYA, CEO, Borsa Istanbul and current chairman of OICEF Exchanges Forum said:
“We are pleased to have the Somali Stock Exchange joining the forum this brings opportunities to Somalia and other member states”
Hassan Hudde, CEO of Somali Stock Exchange Said:
“It is the perfect time for us to join the OICEF Exchanges Forum as we see the trade relations between member states is growing, Turkey and Somalia is a good example of that and we hope to extend that with other member countries”
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The Somali Stock Exchange (SSE) was founded by the management team of Somali Economic Forum (SEF) whose principle aim is to encourage Foreign Direct Investment (FDI) into Somalia’s growing economy.
We are already making history by becoming the first ever stock exchange to operate inside of Somalia with our first shares being sold in September 2015 at the exchanges headquarters.
We exist to drive economic growth for Somalia’s large, Start Up and SME’s companies, transforming our country into a global player, as we assist companies to manage risk, raise capital and grow local and international organisations.
The Organisation of Islamic Cooperation (OICEF) Member States’ Stock Exchanges Forum provides a focused platform and communication channel for representatives of the relevant OIC organizations and institutions to discuss international cooperation activities and offers participants the opportunity to share their experiences. Additionally, the Forum focuses on the efforts towards the work to initiate the groundwork, to harmonise the rules and regulations governing market operations, as well as to open channels through which the stock exchanges may continue to cooperate.
Deepening relations and business links among the OIC member states, with well designed and implemented strategic policies, help us increase the amount of international portfolio investments flowing to our countries.
The Somali Stock Exchange trades its first shares
SEF London - The inaugural Somali Stock Exchange (SSE) began selling its first shares in 1st Sep 2015 at the exchange's headquarters in Garowe, Somalia.
The Somali Stock Exchange was founded by the Somali Economic Forum (SEF) in March 2011 which has as its principal aim encouraging Foreign Direct Investment in Somalia and promoting private sector development.
The Somali Stock Exchange has already made history by becoming the first ever stock exchange to operate inside Somalia.
Historically Somalis sell their shares and invest through the utilisation of familial tie links and through known, close networks. This system of trust is otherwise known as 'Hawala' and has been the foundation of Somalia's multi billion, innovative international remittances sector.
The SSE is projected to grow from strength to strength as there is a substantial capital pool available to the Somali diaspora according to Hassan M. Dudde, the Chairman of The Somali Economic Forum. Previously, these diaspora investors would be forced to invest their capital in other markets, such as Nairobi or Dubai. However, with the emergence of the first Somali Stock Exchange, they can now invest and seek capital investment within Somalia's own borders and main urban centres.
Currently, in its initiation phase, over 20 firms are already listed on the stock exchange as it aims to attract even more firms in the near future. The SSE complimented its launch with a road show, which started in Bosaso, aiming to expand to the leading commercial cities. The SEE also held its first conference at the Puntland Chambers of Commerce in Bosaso during its launch.
Economists predict that the Somali Stock Exchange will expand rapidly due to high levels of demand from the largest Somali firms as well as foreign firms looking to invest in Somalia's ever growing private sector. Also, the SSE is looking to continue its road show with future plans to hold similar investment conferences in Hargeisa, Mogadishu and potentially Kismayo.
We at SEF believe that the Somali Stock Exchange will truly allow Somalis to live up to their commercial reputation as traders and business people, thereby connecting Somalis across the world.