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(A sentence was added to the final paragraph with an updated number of companies within DMCC).
The Dubai Financial Market (DFM) is planning a first-of-its kind platform that would allow free zone companies to tap capital markets, DFM’s chief operating officer (COO) has told Zawya.
During an interview at DFM’s offices in Dubai last week, COO and head of DFM’s operations division, Hassan Al Serkal, said it was “cooperating with the regulatory authorities and the Dubai Airport Free zone (DAFZA) to enable free zone companies to access capital markets through our planned DFM platform for free zone companies”.
Al Serkal said that two free zone companies are already considering a listing on the proposed platform, but did not name them.
There are currently 160 free zones in the MENA region, representing 7.3% of the world total, according to a report published last month by Arabia Monitor. The United Arab Emirates has the most free zones (37 in total), and these are significant contributors to GDP, generating approximately 80% of all non-oil exports.
According to the Arabia Monitor report, Jebel Ali Free Zone (JAFZA) contributes around 20% of Dubai’s GDP and brings in 30% of the emirate’s foreign direct investment. It started life in 1985 and is now home to 7,000 companies, although Dubai Multi Commodities Centre (DMCC) is now the city’s biggest free zone with 13,000 companies, the report said. A subsequent annual report issued by DMCC on June 23 stated that the number of companies within the free zone increased to more than 15,000 last year.
(Reporting by Gerard Aoun; Editing by Michael Fahy)
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© ZAWYA 2019
