Dubai Set to Open Global Stock Exchange

This week’s opening of an international stock exchange in Dubai marks another step toward the booming city’s goal of becoming the global financial hub between Hong Kong and Frankfurt.

The Dubai International Financial Exchange, or DIFX, kicks off trading today with a modest listing of five stock index certificates tracking major European, Japanese and U.S. stock markets.

By the flashy standards of the wealthy emirate, it’s a subdued beginning.

“There will be no financial or real fireworks here on Day One,” said DIFX Chairman Lynton Jones, a veteran executive of the Nasdaq Stock Market and former chief of the International Petroleum Exchange.

The fireworks could begin soon, however. A regional telecom company, Lebanon’s Investcom, has announced that it will be the first company listed on the DIFX, offering shares in an initial public offering in October.

Recent IPOs in Dubai and other Persian Gulf states have been hugely oversubscribed, with shares rocketing to absurd values. The United Arab Emirates’ Economy Ministry canceled several offerings until regulations could be updated.

*

The Week Ahead

Today

* U.S.-China textile negotiations resume in Washington.

* The National Assn. of Realtors reports existing-home sales for August.

Tuesday

* Federal Reserve Chairman Alan Greenspan and White House Economic Advisor Ben Bernanke address the National Assn. for Business Economics meeting in Chicago.

* The Commerce Department reports sales of new homes for August.

Wednesday

* The Commerce Department reports durable goods orders for August.

Thursday

* The Commerce Department reports its final estimate of gross domestic product for the second quarter.

Friday

* The Commerce Department reports personal income and consumer spending for August.

* The University of Michigan reports its index of consumer sentiment for September.