HSBC Holding is among foreign banks seeking brokerage licences in the UAE's domestic bourses of Dubai and Abu Dhabi.

This was stated by an Abu Dhabi stock market executive.

The two markets are trying to draw more foreign cash into their companies, but as in many Gulf markets, international investors are restricted in the percentage stakes they can own in companies.

'HSBC is not the first to apply, but they are very important for access to the wider global investment world,' Rashed Al Baloushi, acting general manager of the Abu Dhabi Securities Market, told Reuters in London, without naming any other banks.

The exchange is showcasing 11 of its largest companies to investors in London following a similar presentation last month by the Dubai Financial Market.

Foreign interest in Gulf stock markets has grown rapidly in the past few months as the bourses have stabilised following a crash last year in which four of the seven benchmarks dropped more than 35 per cent.

Governments around the region are easing curbs on foreign capital, hoping more institutional investment would help reduce the volatility of the bourses, which are dominated by retail investors.

HSBC's application was with the Emirates Securities and Commodities Authority, which regulates both markets, Baloushi said.

'The process starts with the authority, and then it goes down to the exchanges. No paper work has been given to the exchanges, he said.

Paul Cooper, head of emerging markets equities at HSBC in London, confirmed the bank had applied for brokerage licences in Dubai and Abu Dhabi.

'There are a number of global investment banks applying for licences,' he added. Reuters