ADGM Regulatory Authority, SCA unite to allow entities to list shares on UAE markets

By Shilpa Annie Joseph, Official Reporter
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UAE’s Securities and Commodities Authority (SCA) has signed a Memorandum of Understanding (MoU) with the Registration Authority (RA) of Abu Dhabi Global Market (ADGM) in order to allow ADGM registered enterprises to offer and list shares on UAE capital markets.

According to the statement, the agreement intends to strengthen regulatory and supervisory collaboration between the two parties.

Under the terms of the agreement, the ADGM RA and the SCA will work together to improve regulatory collaboration in regards to the listing of ADGM registered firms on UAE markets. The deal also intends to ensure the safety of transactions and the protection of investors, and assist in necessary inspections and investigations.

Dr. Maryam Al Suwaidi
Dr. Maryam Al Suwaidi
Acting CEO – SCA

“The agreement is in line with the SCA’s Resolution No. (11/R.M) of 2016 regarding the offering and issuance of shares on public markets, wherein ADGM registered entities will now be able to offer and list their shares in the UAE’s markets under the applicable listing regulations. It also reinforces the SCA’s existing agreement with the ADGM Registration Authority in the area of supervision and regulatory cooperation. We truly believe that this agreement will contribute to an increase in IPOs and direct listings on the country’s stock exchanges, effectively sustaining market momentum and offering greater opportunities to investors and attract foreign investment inflows.”

Mr. Dhaher Bin Dhaher Al Mheiri, CEO of the ADGM RA said, “This step is especially important as we witness the continuous growth and expansion of the financial market in Abu Dhabi and the UAE. The reinforcement of supervision and regulatory cooperation between us will certainly result in greater investor trust, accessibility, and ease of doing business.”

“As an IFC, we will continue to work with our strategic partners, locally and internationally, to further Abu Dhabi and the UAE’s economic development plans and enable investors and the business community to access investment opportunities in ADGM and beyond,” Mr. Al Mheiri added.

Furthermore, both parties will work together to monitor the trading and ownership of the entities’ publicly traded shares, as well as the detection of illegal and fraudulent acts in order to prevent money laundering, terrorist funding, and the financing of illegal organizations.

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