Listing on the Stock Exchange in the UAE
Listing on the Stock Exchange in the UAEUpdated on Monday 31st October 2016
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Company owners who want to list them on the Stock Exchange in the United Arab Emirates have the possibility to choose between three stock exchanges, two located in Dubai and one in Abu Dhabi. The financial markets in the UAE benefit from becoming more popular among investors.
Investments in Dubai and the rest of the Emirates have also played an important role in the development of the economy and the upgrade of the financial markets. Our attorneys in Dubai can discuss the listing options with you so that you can make the best decision for your company.
Listing on the Dubai Financial Market
The Dubai Financial Market (DFM) is a stock exchange that lists more than 60 companies. While most companies are UAE-based, other foreign companies in Dubai have chosen to trade shares on this market.
The Dubai Financial Market has separate listing requirements for local and foreign companies; in order to be able to list shares in the UAE, a foreign public joint stock company will need to obtain a license from the Emirates Securities and Commodities Authority (ESCA). The company must meet the following rules:
- it must be incorporated for at least two years and have yearly audited financial records;
- it must have a minimum paid-up capital of at least 40 million AED and at least 100 shareholders;
- it must appoint a representative in the UAE and pay the necessary registration fee - 2,000 AED.
Further requirements also apply to foreign companies listed on the DFM. Local Dubai companies also need to comply with certain regulations, both for first class listings as well as second class listings. Our lawyers in Dubai can help you list your company on the Dubai Financial Market.
Our lawyers invite you to watch this short video about listing requirements in Dubai:
Listing on the Abu Dhabi Securities Exchange
The Abu Dhabi Securities Exchange (ADX) is another stock exchange in the UAE, located in Abu Dhabi. The application for listing on the ADX can be submitted after receiving approval from the Emirates Securities and Commodities Authority. The application form will be submitted together with other relevant documents, such as a copy of the company’s articles of association and a list of its board members.
The listing conditions for the ADX are:
- the company must have been incorporated for at least two years, with audited financial records for each year;
- the paid-up capital must be no less than 20 million AED;
- the shareholder’s rights must be equal;
- the company must comply with disclosure requirements.
NASDAQ Dubai is a third stock exchange, also based in Dubai. It lists regional and international shares and its majority shareholder is the Dubai Financial Market.
For more information about doing business in Dubai and specific details about the type of companies that can be fully owned and managed by foreigners, you can contact our law firm in Dubai.