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Analyze the Market efficiency of Dubai Stock Exchange

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In past 30 years, UAE has exceptionally transformed its market and the growth rates have been tremendously making UAE the most sought out market after Gulf countries. With this transformation into the economic world, UAE started structuring financial markets like Dubai Financial Market (DFM) and Abu Dhabi Securities Market (ADSM) in the year 2000. Since their establishment the ADSM has grown by an estimated 343% while DFM (Dubai Financial Market) has increased by an astonishing figure of about 1238% (DFM, 2012).With the establishing of a market the efficiency of the market gains immense importance as the whole performance of the market lies on the efficiency of the respective market. Market efficiency effectively cuts down all the market distortions and the non-symmetric information’s speculations around. Financial markets are considered main force giving agents which gives effective thrust to the overall economy of the country and is regarded as the main backbone of the economic situations. Apart from all the importance’s the important factor of effective market is that it provides the respective country with the opportunity to raise their capital for further expansion of their market and increment of their infrastructure (Squall, 2005).Dubai Financial Market (DFM) was established in year 2000 in the month of May when the government of the UAE realised about development of public market with an independent status. In its initial days of being, the Dubai Financial Market (DFM) was considered as a secondary market for all the stocks that were issued by stock companies and also for the bonds that were officially released by UAE government. In the Last two decades, the market analysis has been transformed and a particular trend has been adopted following a specific suite. Almost all of the studies carried out are focused on the purpose for finding the answer to the question of randomness in the stock market i. whether the trends are random or they have a particular in line plan (Azzam, 2002).A study by Al-Barrak (2010) evaluates the result in the form randomness hence it has been supplemented with a hypothesis named as RWH (Random Walk Hypothesis). RWH (Random Walk Hypothesis) states that the trend followed by the market is random and there is no way the future trends and future possibilities can be predicted keeping in light the past results and deductions (Al-Barrak,
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