Dubai - Mubasher: The Crown Prince of Dubai, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, has launched a new market under Nasdaq Dubai, the Nasdaq Dubai Growth Market, to help small and medium-sized companies (SMEs) to grow.
The new market will enable young businesses and SMEs to expand by raising their capital through an initial public offering (IPO), according to a press release on Tuesday.
This step is part of the Dubai Future District, a specialised area that focuses on the development of the future economy by connecting Emirates Towers with the Dubai World Trade Centre and the Dubai International Financial Centre (DIFC).
Alongside with companies in the UAE, the Growth Market will also welcome companies from around the world to support their expansion in the region and internationally.
The Nasdaq Dubai Growth Market will allow SMEs with businesses valued below $250 million to carry out their IPO.
To be listed on the new market, SMEs should have a minimum operating history of one year, compared to three years in Nasdaq Dubai’s main market.
The companies that cannot launch IPO will be able to join the Private Market segment in the Growth Market where a company’s shares are held for safekeeping in Nasdaq Dubai’s Central Securities Depository (CSD).
In collaboration with government bodies, UAE free zones, and expert advisory companies, Nasdaq Dubai will launch the new market in early 2021.
Sheikh Hamdan commented: "The launch of the Nasdaq Dubai Growth Market is a strategic step that will support this vital sector by opening new horizons for its companies and providing them with investment resources to expand their business and enhance their attractiveness in global markets."