DFM introduces incentives to attract more private sector IPOs

By Amirtha P S, Desk Reporter
  • Follow author on
Representational Image

The Dubai Financial Market (DFM) has launched an incentives program to encourage new Initial Public Offerings (IPOs) and listings from private companies in key economic sectors that strongly contribute to the country’s gross domestic product (GDP).

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

Hamed Ali
Hamed Ali

“Dubai is home to an 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.”

The DFM’s new program is in line with the government’s efforts to strengthen Dubai’s position as a global capital markets hub that included the launch of a $544 million market maker and a $277 million IPOs support fund to encourage tech companies to list on Dubai markets.

The DFM’s latest initiative is aimed at a number of key and rapidly growing economic sectors, including technology, transport, logistics, healthcare, pharmaceutical, manufacturing and agritech.

Dubai is looking to boost its stock market and attract more listings as it seeks to tap into a growing appetite for IPOs in the region. This month, the emirate announced that it plans to list ten government and state-owned companies on the DFM as part of a broader strategy to double the financial market’s size to $822 billion.

Related: Dubai brings out $272mn fund to support tech startups