Dubai unveils new incentives to stimulate IPOs, stock market listings

Programme targets companies in lucrative sectors such as technology, pharmaceutical

  
A woman walks through the Dubai Financial Market after Joe Biden won the U.S. presidency, in Dubai, United Arab Emirates November 8, 2020. Image used for illustrative purpose

A woman walks through the Dubai Financial Market after Joe Biden won the U.S. presidency, in Dubai, United Arab Emirates November 8, 2020. Image used for illustrative purpose

REUTERS/Christopher Pike

The Dubai Financial Market (DFM), which operates the emirate’s stock exchange, has unveiled new incentives to stimulate initial public offerings (IPOs) and listings on the local bourse.

The incentives are targeted at private companies in lucrative sectors and include financial support for the cost of IPOs and stock listings, the DFM said in a statement.

Companies going public will also enjoy post-listing support through participation in international roadshows and will be exempt from listing fees, AGM fees and dividend fees for a period of three years.

The incentive programme is part of a wider strategy to strengthen Dubai’s position as a hub for capital markets. Dubai has recently announced plans to list 10 government and state-owned companies on the bourse and expand the stock market’s size to 3 trillion dirhams ($816 billion). 

The emirate also launched a market-making fund worth 2 billion dirhams ($544 million) and another fund worth 1 billion dirhams, to encourage companies in the technology sector to list on the local stock market.

Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance recently approved a new plan to list Dubai's traffic toll system 'Salik' as well as its main water and power utility, the Dubai Electricity and Water Authority (DEWA), on the DFM in the coming months.

The new incentives programme will also provide new investment opportunities, said Hamed Ali, CEO of DFM and Nasdaq Dubai.

“Dubai is home to unparalleled portfolio of regional and international companies… Attracting new IPOs will provide DFM’s global network of investors from over 208 nationalities with new investment opportunities,” he said.

The DFM said it is looking to attract companies in high growth sectors such as technology, transport and logistics, healthcare, pharmaceutical, manufacturing and agri-tech.

(Writing by Cleofe Maceda; editing by Seban Scaria)

Cleofe.maceda@refinitiv.com

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© ZAWYA 2021


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