A new exchange within "Hay Al-Mustaqbal" allows startups to obtain financing for growth

Hamdan bin Mohammed launches "Nasdaq Dubai Growth Market" to empower small and medium businesses

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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 Initial public offering.

This step comes within the framework of the initiatives of the Dubai Future District, launched by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, at the beginning of this year, within the largest specialized region for the future economy industry in the region, and to provide an investment and technical environment. Legislative, service and incentive areas, and it is the area that links Emirates Towers with the Dubai World Trade Center and the Dubai International Financial Center.

Simplified Insert

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.

Stimulate growth

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

Drive head

His Highness the Crown Prince of Dubai said: “Small and medium-sized companies represent a major and dynamic driver of our national economy, and the launch of 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 in increasing the contribution to overall economic development, investing in talent and employment, creating new job opportunities, and motivating entrepreneurs to initiate and innovate.

turning point

In this regard, the Governor of the Dubai International Financial Center and Chairman of the Dubai Financial Market, Issa Kazim, 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 various Countries of the world, to expand the scope of its 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. ”

Strategic approach

For his part, CEO of NASDAQ Dubai and Deputy CEO of the Dubai Financial Market, Hamid Ali, said, “The new market was designed in a strategic manner 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. For the IPO phase ».

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

An important step

In turn, the Director General of the Department of Tourism and Commerce Marketing and the Dubai World Trade Center Authority, Hilal Saeed Al-Marri, said, “The launch of the Nasdaq Dubai market for growth is an important step for the success of the Dubai neighborhood for the future, which His Highness Sheikh Mohammed bin Rashid Al Maktoum wanted to be a practical translation of a commitment Dubai is firmly established in making the future economy in the region.

"This market will contribute, by enabling innovation-based institutions to obtain new capital and financing, to enhance the efficiency of the integrated system of the Dubai neighborhood for the future and the infrastructure for business development for emerging and new companies and small and medium enterprises to work and thrive in the heart of Dubai," he added.

Creative thinking

In the same context, Chief Executive Officer of the Dubai Future Foundation, Khalfan Juma Belhoul, said, “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 by innovative projects to accelerate their growth and find new markets for their services. And its products, ”adding:“ 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.

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, who are looking to take advantage of 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 in "Nasdaq Dubai", with its share of two-thirds, while the Dubai Stock Exchange owns one-third of the shares.

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

The Nasdaq Dubai stock exchange is based in the Dubai International Financial Center.

Inclusion of companies

The Nasdaq Dubai growth market provides a listing opportunity for small and medium-sized companies, if their value is less than $ 250 million.

It will also enable qualified companies to apply for listing one year after its incorporation, compared to three years for the main market, "Nasdaq Dubai".

"Nasdaq Dubai" is cooperating with government agencies and free zones in the United Arab Emirates 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, which will provide appropriate support, including outreach and preparation for the IPO.

As is the case in the main stock market in "Nasdaq Dubai", "Nasdaq Dubai Growth Market" will allow company owners to implement an initial public offering with the sale of a stake equivalent to 25% or more of their company shares, which will enable them to maintain the majority of the shares.

Operation early 2021

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 was 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 a potential listing.

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