Trading started at 1000 GMT on the Dubai International Financial Exchange (DIFX). No companies are yet listed on the bourse, which trades five securities that track international markets in Europe, Japan and the United States.

"We expect companies over this period to raise a couple of billion dollars," said Chief Executive Steffent Schubert.

Two billion dollars looks a modest target compared to the estimated 40 billion dirhams ($10.9 billion) bankers expect will be raised on UAE stocks markets in 2005.

"It has the capability to be an international financial centre. There is a lot of expectation in the region. Can it reach those expectations? That is the key," asked Sahilesh Dash, head of strategic asset management at Kuwait's Global Investment House.