Nasdaq Dubai Growth Market
Another remarkable achievement by Dubai in the international stock market. A fresh stock market has been set up in Dubai for medium to small-scale businesses, that is; the Nasdaq Dubai Growth Market. Nasdaq Dubai will provide fast-growing businesses a great opportunity to get a cost-effective listing in the stock market. The new entity has been launched as per the directives of H.H Crown Prince Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum and will be operated by Nasdaq Dubai. The entity will host businesses from the United Arab Emirates as well as from other countries should they wish to expand their operations in the region.
The Crown Prince stated that the growing market has been launched to help small businesses as they are one of the pillars of the UAE’s economy. This initiative will help SMEs and entrepreneurs to attract investors and expand their businesses. The Growth Market will start its operations in early 2021. It will serve as a strategic footstep in the market and will support vital sectors by providing new and fresh opportunities. He further added that the world is in need of additional 600 million jobs by the year 2030 in order to absorb fresh entrants in the market. Our aim is to ensure these young businesses get the required financing so that they can grow their workforce.
The launch of the Nasdaq Growth Market would take place in 2021 and SMEs are welcome to join if they are valued below $250 million and operating a period of at least 1 year.
The Growth-Market will permit business owners to perform the IPO by selling as little as 1/4th (25%) shares in their business.
The Growth-Market plan will reinforce the position of Dubai and the UAE as the biggest finance and business hub of the Middle East, all the while letting new, small businesses to expand and grow locally, regionally, and globally.
Businesses that are not yet prepared enough to have an IPO shall get the opportunity to become part of the division of NDGM called, ‘Private Market’. There, businesses’ shares are detained for protection purposes in the Nasdaq Dubai’s CSD, Central Securities Depository. This gives a great opportunity to companies to move in an exchange environment before a potential listing.
The Chairman of Dubai Financial Market and Governor of Dubai International Financial Centre, Essa Kazim says that the Growth Market will play an important role in the upcoming times of the country’s capital-raising. Moreover, it will also serve the purpose of becoming a pathway for investments.
Nasdaq Dubai is closely working with advisory firms, free zones, and government bodies in order to successfully launch the Growth Market on time. The consultants include accounting firms, law firms, investment banks, and other similar advisory firms to provide pre-IPO related readiness end awareness exercises.