The bourses of Abu Dhabi and Dubai have engaged the services of banks to advise them on the possible merger of their two main stock exchanges. The state backed merger is expected to revitalize the financial markets in the United Arab Emirates, according to individuals familiar with the plan.

A merger of the exchanges would be the biggest reform to be held in the country's financial industry in the past years. This though would help investors to easily navigate across the markets, stimulate trading and attract more foreign investment into the UAE financial market.

Since 2010, there have been on again-off again discussions of a merger between the Dubai Financial Market (DFM) and the Abu Dhabi Securities Exchange (ADX). The drawbacks though stem from the differences over valuations as well as the corporate debt crisis that swept Dubai back in 2009 until 2010.

Because of the renewed focus on cooperation between the two emirates on many areas, the merger of the two bourses had once again started to gain momentum. This was confirmed by banking and industry sources back in June.