Hamdan bin Mohammed launches "Nasdaq Dubai for Growth" to support startups and small businesses

His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, launched a new market called "Nasdaq Dubai Growth Market", under the umbrella of Nasdaq Dubai, which is a platform that aims to help and stimulate small and medium enterprises to achieve growth by increasing capital through an initial public offering. .



This step comes within the framework of the "Dubai Future District" initiatives launched by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, may God protect him, at the beginning of this year within the largest specialized region for the future economy industry in the region and providing an investment, technical and legislative environment. And service and incentive, which is the area that connects the Emirates Towers with the Dubai World Trade Center and the Dubai International Financial Center.



The Nasdaq Dubai growth market will enable emerging companies to achieve a simplified and cost-effective listing on the international exchange in the region.

As part of the Dubai Future District project, the new market will not only include Emirati companies, but will also welcome companies from all over the world to help them expand regionally and internationally.



His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum affirmed that Dubai is keen to present ideas and initiatives that would advance the economy, whether in its local context or in its regional and global dimension, stimulate growth within various sectors, and create the necessary conditions for business success and prosperity by building partnerships and creating opportunities. Through which the benefit and benefit can be generalized, His Highness noted that "Nasdaq Dubai's growth market will strengthen the role of Dubai and the UAE as a center for business and finance in the Middle East region, and will be an ideal incubator for projects based on innovation, diversification and distinction."



His Highness, the Crown Prince of Dubai, said: “Small and medium-sized companies represent a major and dynamic driver of our national economy, and launching the Nasdaq Dubai market for growth is a strategic step that will support this vital sector by opening new horizons for its companies by providing them with investment sources that help them expand their activities and enhance their attractiveness in global markets.”


His Highness pointed out the value of supporting small and medium-sized companies and its impact on increasing their contribution to overall economic development, investment in talent and employment, creating new job opportunities and motivating entrepreneurs to take initiative and innovation.



A turning point and investment opportunities


in this regard, His Excellency Issa Kazim, Governor of the Dubai International Financial Center and Chairman of the Dubai Financial Market, said: “The launch of the Nasdaq Dubai growth market represents a turning point for the capital markets in Dubai and the region as a whole, by supporting companies seeking to be listed. From different countries of the world, to expand its field of business and prominence regionally and globally, "noting that the new market will play a major role in the future of the capital market and in directing investment to companies to enable them to succeed in all stages of their work."



For his part, said Hamid Ali, CEO of Nasdaq. Dubai and the Executive Vice President of the Dubai Financial Market: “The new market is strategically designed to attract a wide range of companies from vital sectors and different geographical areas, in addition to simplifying the listing process to facilitate the access of these companies to the IPO phase.

The market will also contribute to creating attractive investment opportunities for investors to contribute to these companies, in addition to the role the platform will play to support economic growth at the regional and international levels.



”Hilal Saeed Al-Marri, Director General of the Department of Tourism and Commerce Marketing and the Dubai World Trade Center Authority said: Nasdaq Dubai Growth Market "An important step for the success of the Dubai Future District, which His Highness Sheikh Mohammed bin Rashid Al Maktoum wanted to be a practical translation of Dubai's firm commitment to creating the future economy in the region."

This market - by enabling innovation-based enterprises to obtain new capital and financing - will contribute to enhancing the efficiency of the integrated system of the Dubai neighborhood for the future and the infrastructure for business development for new and emerging companies and small and medium enterprises to operate and thrive in the heart of Dubai. ”



In the same context, Khalfan said. Juma Belhoul, CEO of the Dubai Future Foundation: “The Nasdaq Dubai growth market will have a clear impact in promoting creativity and innovative thinking and supporting entrepreneurs and emerging companies by providing the financing needed for innovative projects to accelerate their growth and create new markets for their services and products.

There is no doubt that launching this market constitutes a new step that confirms Dubai's leadership in supporting the innovation and entrepreneurship system and strengthens its global position as one of the best cities in the world in preparation for the future. ”



Listing of Small and Medium Enterprises


The Nasdaq Dubai Growth Market provides the opportunity to list for small and medium-sized companies, if their value It will also enable eligible companies to apply for listing one year after its incorporation, compared to three years for the main Nasdaq Dubai market Nasdaq Dubai



cooperates with government agencies and free zones in the UAE and specialized consulting firms as partners to launch the Nasdaq Dubai growth market The advisors will include financial advisory firms, investment banks, law firms and accounting firms that will provide appropriate support including awareness and preparation for an IPO.



As with the main stock market on Nasdaq Dubai, the Nasdaq Dubai growth market will allow company owners to carry out an initial public offering while selling a stake. Equal to 25% or more of their company's shares, which will enable them to maintain a majority of the shares



Nasdaq Dubai intends to start operating the "Nasdaq Dubai Growth Market" in early

2021 in addition to the first initial IPOs.

A number of companies have already appointed advisors to start the IPO process.

The creation of this market has been facilitated through the development of the supportive regulatory framework for the exchange, which was announced by the Dubai Financial Services Authority in April 2020, after consulting with market participants.



Firms that do not qualify for an IPO will also be able to join the private market segment of the Nasdaq Dubai growth market, where the company's shares are held in the Nasdaq Dubai Securities Depository Center.

This system is designed to give investors confidence and move the company into an exchange environment in preparation for potential listing.



Nasdaq Dubai


Nasdaq Dubai is the global financial exchange for the region between Western Europe and East Asia.

The Stock Exchange receives issuers from all over the world looking to benefit from investment opportunities at the regional and international levels.

The stock exchange currently lists stocks, derivatives, sukuk (Islamic bonds), conventional bonds and real estate investment funds.



The Dubai Financial Market is the main shareholder of Nasdaq Dubai, with its two-thirds share, while the Dubai Stock Exchange owns one-third of the shares.

The Dubai Financial Services Authority (DFSA) is the regulatory authority for Nasdaq Dubai.

Nasdaq Dubai is based in the Dubai International Financial Center.

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