Mohammed bin Rashid issues a decree to list the shares of joint-stock companies on the Dubai stock exchanges

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

The decree included provisions distributed between local companies, non-local companies and foreign companies for the purpose of listing their shares in the 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 free zones, including the Dubai Center. Global financial, and they are licensed by the competent licensing authority in accordance with the legislation in force with them. 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, while foreign companies are defined as companies Which is established and licensed outside the United Arab Emirates, and has branches, assets or activities within the Emirate of Dubai.

According to the decree, local companies are obligated to list their shares on the stock exchanges 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 the federal legislation in force are observed. And in the event that private joint-stock companies licensed in the Emirate of Dubai wish from the competent licensing authority to list their shares in any of the stock exchanges outside the Emirate of Dubai, then they must first list their shares in the local stock markets in the emirate whenever 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 exchanges in the Emirate of Dubai, in cases where their annual profits or financial returns derived from conducting their activities in the Emirate of Dubai have reached 50% or more of their total annual profits. Or its financial returns, or whenever the percentage of the 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 aforementioned ratios. The decree exempted public joint-stock companies that are established under federal legislation from the compulsory listing on local stock markets.

While 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 ratios, provided that this listing is done in accordance with the terms, rules and regulations in force at the stock markets Local companies that those non-local companies want to be listed in.

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 The local securities that these foreign companies want to have their shares listed with.

Listing and trading of shares

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

Duties of Licensing Authorities

The decree requires the licensing authorities in the Emirate of Dubai, represented by the Department of Economic Development, and the authorities supervising the special development zones and free zones, including the Dubai International Financial Center, to follow up on the compliance of local and non-local companies with the provisions of this decree, and to take the necessary measures against local companies. And non-local companies not committed to implementing its provisions, including canceling their registration and licensing with them, until they correct their positions in accordance with the provisions of this decree, in addition to coordinating with local stock markets to put this decree into effect.

Adjustment

The decree required all companies that are obligated to list their shares in the local stock markets in accordance with 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 grace period granted to these companies according to the decree for a similar period in the circumstances that require it. This decree shall be published in the Official Gazette of the Government of Dubai and shall be enforced from the date of its publication.

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