Issued by Mohammed bin Rashid

Decree granting joint-stock companies that are obligated to "list" one year to adjust their positions

picture

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, in his capacity as Ruler of Dubai, issued Decree No. (3) for the year 2021, listing the shares of joint stock companies in the stock markets in the Emirate of Dubai.

The decree requires all companies that are obligated to list their shares in the local stock markets, in accordance with its provisions, to adjust their positions within a period not exceeding one year from the date of its implementation.

Corporate definition

The decree included provisions distributed among local companies, non-local companies, and foreign companies for the purpose of listing their shares in stock markets. The decree defined “local companies” as public joint-stock companies that are established in the Emirate of Dubai, including special development areas and regions. The freehold, including the Dubai International Financial Center, is licensed by the competent licensing authority, according to the legislation in force with it. As for "non-local companies", the decree defined them as public joint-stock companies that are established and licensed outside the emirate of Dubai, and have branches, assets or activities within the emirate, Whereas, “foreign companies” are defined as companies that are established and licensed outside the UAE, and have branches, assets or activities within the Emirate of Dubai.

Stock inclusion

According to the decree, local companies are obliged to list their shares in the stock markets in the emirate of Dubai, which include the Dubai Financial Market and Nasdaq Dubai, before they list their shares in any of the stock exchanges outside the Emirate of Dubai, provided that the provisions of federal legislation are taken into consideration. Mast.

In the event that private joint stock companies licensed in the Emirate of Dubai, by the competent licensing authority, wish to list their shares in any of the stock exchanges outside the Emirate of Dubai, they must first list their shares in the local stock exchanges in the emirate, as long as they fulfill the conditions, requirements and rules The listing in force at the Dubai Stock Exchange.

Non-local companies

According to the decree, non-local companies are obligated to list their shares in the local stock markets in the Emirate of Dubai, in cases where their annual profits or financial revenues derived from carrying out their activities in the Emirate of Dubai amounted to 50% or more of their total annual profits or revenues. Financial, or when the percentage of assets it owns within the Emirate of Dubai reaches 50% or more of its total assets, provided that non-local companies list their shares, in this case, within one year from the date of achieving any of the percentages referred to, while the decree excluded Public joint-stock companies that are established under federal legislation mandatory to list in local stock markets.

The decree permits non-local companies to list their shares in the local stock markets in the Emirate of Dubai, in the event that their annual profits, financial returns, or assets in the emirate do not reach the aforementioned percentages, provided that this listing is done in accordance with the conditions, rules and regulations in force at the local stock markets. , Which those non-local companies wish to list with.

Foreign companies

As for the foreign company that is established and licensed outside the country, and has branches, assets or activities in the Emirate of Dubai, the decree authorized it to list its shares in the local stock markets in the emirate, whether as a main or secondary platform, in accordance with the terms, rules and regulations in force at the markets Local securities, which these foreign companies want to have their shares listed with.

Adjustment

The decree required all companies that are obligated to list their shares in the local stock markets, according to its provisions, to adjust their positions in accordance with the duties stipulated in the decree, within a period not exceeding one year from the date of its implementation, while the decree authorized the competent licensing authority in The Emirate of Dubai may extend the time limit granted to these companies under the decree for a similar period, in cases that call for that. This decree will be published in the Official Gazette of the Dubai Government, and it shall take effect from the date of its publication.

Duties of Licensing Authorities

The decree required the licensing authorities in the Emirate of Dubai, represented by the Department of Economic Development, the authorities overseeing special development zones and free zones, including the Dubai International Financial Center, to follow the commitment of local companies and non-local companies to the provisions of this decree, and to take the necessary measures against local companies And non-local companies that are not bound to implement its provisions, including canceling their registration and licensing with them, until their positions are corrected in accordance with the provisions of this decree, in addition to coordinating with local stock markets to put this decree into effect.

Stock listing and trading

The decree stipulates that the listing and trading of the shares of the companies covered by its provisions shall take place in view of the nature of the company, the rules, conditions and procedures adopted by the local stock exchanges, as well as according to what is coordinated with the authorities supervising the special development zones and free zones, including the Dubai International Financial Center, For companies licensed within these zones.

• List the shares of non-local companies whenever their annual profits or returns from their activities in Dubai reach 50% or more of their annual profits.

Follow our latest local and sports news, and the latest political and economic developments via Google news