Virtual Securities for Investor Shares; DIFC’s client makes history

By Rahul Vaimal, Associate Editor
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UAE’s global financial hub, Dubai International Financial Center (DIFC) has announced that one of its clients, Investment banking and wealth management company GRIP will conduct a multi-million dollar capital raise for Lead Real Estate this month, through the innovative issuance of Digital Securities representing Investor Shares.

With the initiative, GRIP became the first company in the MEASA region to establish, manage and distribute an international capital raise using Digital Securities as an issuing medium.

This step marks an important milestone for both Dubai and DIF as the issuance is MEASA’s (Middle East Africa and South Asia) first major globally compliant digital securities offering. GRIP is also in the process of developing a marketplace for private securities within the Centre, a first for the region.

DIFC has played a key role in making this possible through its laws, regulations and frameworks and enhances DIFC’s dream for shaping finance ‘s future. The issuance also strengthens the role of the DIFC as the region’s leading financial hub, thanks to its robust yet creative regulatory and legal framework that helps foster innovation and technology adoption.

The project includes a joint effort by reputable attorneys, regulated firms and technology and service providers globally including UAE, Japan, Hong Kong, US and the Cayman Islands.

GRIP leads the capital raising for Lead Real Estate, a Tokyo-based residential and commercial developer focusing on planning, purchasing, renovating and repurposing real estate properties. Further, some of its projects are being built to take advantage of opportunities emerging from the Tokyo Olympics in 2021.

The properties of Lead Real Estate are distributed throughout Japan, the Philippines, America, Hong Kong and the Philippines.

Arif Amiri
Arif Amiri, CEO – DIFC Authority

“We are pleased that DIFC’s robust yet forward-looking legal and regulatory framework is providing GRIP with a platform to deliver a first for the Centre and MEASA region. Innovation like this will propel economic development in the region and illustrates how DIFC is driving the future of finance.”

While Tony Pettipiece, Chairman of GRIP said that, “We are excited, and believe this will be the first of many issuances to come to market using this innovative technology.”

On the global scene, Dubai continues to be regarded as a competitive market in which creativity thrives. DIFC is the hub of all the elements found on the most productive ecosystems of the financial industry in the world. It includes an independent regulatory and judicial framework, access to funding, an encouraging business ecosystem, global financial exchange and the best pool of talent in the world.