Dubai Financial Market (DFM), which operates the emirate’s stock exchange, has unveiled new incentives to boost initial public offerings (IPOs) and listings on the local stock exchange.
The incentives are aimed at private companies in lucrative sectors and include financial support for the cost of IPOs and stock market listings, the DFM said in a statement.
IPOs will also benefit from post-listing support through participation in international roadshows and will be exempt from listing fees, annual general meeting fees and dividend fees for a period of three years.
The incentive program is part of a broader strategy to strengthen Dubai‘s position as a capital markets hub. Dubai recently announced plans to list 10 government and state-owned companies on the stock exchange and expand the size of the stock market to 3 trillion dirhams ($816 billion).
The emirate has 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 s register on the local stock market.
Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Governor 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 public utility in water and electricity, the Dubai Electricity and Water Authority (DEWA), on the DFM in the coming months.
The new incentive program will also provide new investment opportunities, said Hamed Ali, CEO of DFM and Nasdaq Dubai.
“Dubai is home to an unrivaled 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 seeks to attract companies in high-growth sectors such as technology, transportation and logistics, healthcare, pharmaceuticals, manufacturing and agri-tech.
(Writing by Cleofe Maceda; editing by Seban Scaria)
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© ZAWYA 2021