DFM launches incentives for private businesses’ IPOs across key growth sectors

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  • Hamed Ali: “The program encompasses unprecedented incentives offered to companies planning to IPO in Dubai”
  • The program provides financial support to private companies for IPO and listing-related cost
  • a three years’ waiver on listing fees, AGM fees and dividend distribution fees
Hamed Ali, CEO of DFM and Nasdaq Dubai

Dubai: The Dubai Financial Market (DFM) today announced an incentives program to encourage new Initial Public Offerings (IPOs) and listings from private sector companies representing numerous rapidly growing economic sectors that strongly contribute to the GDP as well as the new-economy related companies.

The program encompasses unprecedented incentives including financial support to the cost of private companies’ IPOs on DFM’s Main Market and listing on the Second Market, post listing support through participation on DFM’s international roadshows regionally and globally in addition to a three years’ waiver on listing fees, AGM fees and dividend distribution fees.

The new program is in line with the unwavering efforts to strengthen Dubai’s position as global capital markets hub that included the launch of an AED 2 billion market maker and an AED 1 billion IPOs support fund to encourage tech companies to list on Dubai markets.

Unparalleled portfolio of superb private companies in Dubai

Commenting on the new incentives program, Hamed Ali, CEO of DFM and Nasdaq Dubai, said: “Dubai is home to unparalleled portfolio of regional and international private companies. The new incentive program stems from our commitment at DFM to become a platform that accelerates the growth of the private sector and to mirror Dubai’s success as a world-class base for leading businesses regionally and internationally. Moreover, attracting new IPOs will provide DFM’s global network of investors from over 208 nationalities with new investment opportunities.”

Key sectors

Through launching the new incentives for private sector companies looking to go public and list, the DFM seeks to attract companies belonging to rapidly growing sectors that are substantially contributing to the economy such as: Technology, Transport & Logistics, Healthcare, Pharmaceutical, Manufacturing, and Agri-Tech.

About Dubai Financial Market: 

Dubai Financial Market (DFM) was established as a public institution with its own independent corporate body. DFM operates as a secondary market for the trading of securities issued by public shareholding companies, bonds issued by the Federal Government or any of the local Governments and public institutions in the country, units of investment funds and any other financial instruments, local or foreign, which are accepted by the market. The DFM commenced operations on March 26, 2000 and became the first Islamic Shari’a-compliant exchange globally since 2007. Following its initial public offering in November 2006, when DFM offered 1.6 billion shares, representing 20 per cent of its paid-up capital of AED 8 billion, DFM became a public joint stock company and its shares were listed on 7 March 2007 with the trading symbol (DFM). Following the IPO, the Government of Dubai retained the remaining 80 per cent of DFM Company through Borse Dubai Limited.