The direct stock purchase is a preferred investment method for many entrepreneurs. Buying shares in a company in Dubai can be done through a direct stock purchase plan or through a dividend reinvestment plan. Individuals can also trade stock on the local stock market.
First-time investors in Dubai who want to buy or sell shares in Dubai can request the help of a local expert. Our law firm in Dubai works with foreign investors and our specialists are able to provide you with all the needed information about investing in the Emirates and the laws applicable to foreign entrepreneurs.
Buying shares on the stock market
When buying shares in Dubai, knowing the local market can offer a great advantage. A local broker or financial services company can help investors. Companies in Dubai can be listed on the Abu Dhabi Stock Exchange or on the Dubai Financial Market. The latter is a popular choice among foreign investors.
The direct stock purchase plan is one of the methods that allows investors to buy stocks directly from a chosen company. Dubai is a financial centre and many international companies operate from here. Thus, investors have a wide range of options when selecting a company. The issuing company will generally provide this service based on a commission or service charge.
If you want to explore the available options for direct stock purchase or are interested in other stock purchase plans you can talk to one of our lawyers in Dubai.
The following video summarizes the share purchase options in Dubai:
Buying company shares in Dubai
When investors in Dubai decide they want to buy shares in a limited liability company (and not a public limited liability company that is traded on the stock market), they will need to conclude a share transfer agreement.
The buyer of shares must provide a copy of his identification documents, a power of attorney (if an individual is authorized to act on his behalf), a board resolution approving the share purchase (when the purchase done by another legal entity). The number of shares that are to be transferred must be specified in the documentation that accompanies the share purchase agreement.
For more information about investments in Dubai or how to open a company in the Emirates please contact our law firm in Dubai. Our local experts are able to offer you all the needed information about the laws for investments, especially if you are doing business for the first time in the Emirates and are not accustomed to the free zones.