Dubai plans to launch $544mn worth fund to boost market liquidity

By Shilpa Annie Joseph, Official Reporter
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Dubai has revealed plans to launch a $544 million (Dh2 billion) market-maker fund to encourage trading on the stock market.

Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai and Deputy Prime Minister and Minister of Finance of the UAE, has announced the listing of ten government and state-owned companies on the Dubai Financial Market (DFM) as part of a push to speed up new listings in sectors including energy, logistics, and retail.

Sheikh Maktoum, who is in charge of the emirate’s stock exchange and bourses, also approved the establishment of a $272 million (Dh1 billion) fund to promote technology businesses to float on the local bourse and encourage innovative financial products and solutions.

The Minister of Finance, who had the first meeting of the Securities and Exchange Higher Committee, also announced the establishment of a Dubai Markets Supervisory Committee and specialized capital markets courts in Dubai. He stated that the emirate intends to expand the overall volume of its stock markets to $816 billion (Dh3 trillion) as part of His Highness Sheikh Mohammed bin Rashid Al Maktoum’s vision as Vice-President and Prime Minister of the UAE and Ruler of Dubai.

The Securities and Exchange Higher Committee will mandate the study of a regulatory framework to attract new digital assets to operate from Dubai, in addition to supporting Environmental, Social, and Governance (ESG) factors and reporting in operations, which will contribute to shaping Dubai’s future economy.

Further, the committee, which is charged with developing the vision for the financial sector and evaluating plans and policies to meet strategic objectives, approved the formation of the Dubai Markets Supervisory Committee, chaired by Dr. Abdulla Al Ghafari.

The committee will be in charge of overseeing, monitoring, and protecting the interests of shareholders and investors in Dubai’s securities and commodities markets, as well as improving transparency and enforcement through effective coordination among relevant stakeholders, according to the reports.

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