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UAE football clubs on road to become listed companies - Report

UAE football clubs on road to become listed companies - Report
The UAE Football Association Securities recently signed an MoU the Securities and Commodities Authority

By: Amr Adel and Mahmoud Gamal

Dubai - Mubasher: Football clubs in the United Arab Emirates are stepping up into major business entities, mimicking in a way its European counterparts.

On Sunday, the Securities and Commodities Authority signed a memorandum of understanding (MoU) with the UAE Football Association to lay out a framework for transforming clubs to public shareholding companies before listing it on the stock exchange.

Dubai Sports Council has called in its latest meeting for activating the role of investment companies in the sports sector, in order to increase the clubs financial resources and reduce dependency on governmental support.

According to experts, listing clubs could help provide the cheapest finance possible for its operations, allowing it a better opportunity for more investments.

Ihab Rashad, the CEO of Al Safwa Mubasher Financial Services told Mubasher that including sporting clubs in the stock market helps both, as it will diversify the market sectors and provide alternative investments tools to sports enthusiasts.

Around 33 clubs are expected to be listed within two years, with the richest and most popular clubs in the frontline for the awaited step.

Meanwhile, Eyad Al Bouriki, the general manager of Al Ansari Financial Services said that this will be a new activity in the market, which in turn will encourage new investors and enhance liquidity levels.

Al Bouriki forecasts the UAE government to list between 25% and 30% of the shares of the clubs in the stock market, while maintain a majority stake.