Dubai revamps guidelines for listing local joint stock companies
31 January, 2021
Sheikh Mohammed bin Rashid, primary minister and ruler of Dubai, issued a decree revamping certain requirements to list native joint stock corporations on the emirate's bourses.
All non-local companies must list their shares on the Dubai Financial Industry (DFM) and Nasdaq Dubai if indeed they generate over fifty percent of their annual gains or revenues from activities on Dubai, the emirate's media office said on a statement on Saturday.
Companies are also necessary to list if their total possessions in the emirate total 50 per cent or even more of their entire assets.
"The listing should be finished within a time of the time of reaching this percentage," the media workplace said. All companies are required to change their position a season on from the issuance of this decree.
Non-local businesses which generate significantly less than 50 % of their revenues from Dubai are also permitted list on regional exchanges while foreign firms can list their shares in local bourses either on the form of a main or secondary listing.
The brand new decree directs all native public joint stock companies established in Dubai, including those create in special financial zones or free zones including the Dubai International Financial Centre, to list on the emirate's exchanges, in line with the Dubai Media Office statement.
Companies that already are listed on the neighborhood stock markets can experience secondary listings found in other markets.
"Domestic listings will maintain positivity in bringing latest capital to the market," Monica Mallik, chief economist in Abu Dhabi Commercial Lender, said.
Dubai Media Business office cautioned that sign up and licences of the firms that do not abide by the latest regulations would be cancelled, the assertion added.
The latest move comes as Dubai looks to increase listings on its local market segments, while becoming an attractive destination for foreign investors.
The move "gives protection to people who spend money on publicly stated companies", Nabil Rantisi, general manager for wealth management at Dubai-based Daman Investments said.
The commercial and trading hub of the Middle East is forecast to expand 4 per cent in 2021, according to official data.
Source: www.thenationalnews.com
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