Global Economy

Dubai requires local companies to list their shares in the emirate’s markets before heading abroad

Sheikh Mohammed bin Rashid Al Maktoum, Vice President, and Prime Minister, in his capacity as Ruler of the Emirate of Dubai, issued a decree obliging local companies to list their shares on the stock exchanges in the Emirate of Dubai, which include the Dubai Financial Market and the Nasdaq Dubai Stock Exchange before they list their shares on Any of the stock markets outside the Emirate of Dubai when it fulfills the conditions, requirements, and rules of listing in force at the Dubai stock market.

Non-local companies
According to the decree, non-local companies are required to list their shares in the local stock markets in the Emirate of Dubai, in cases where their annual profits or financial returns from conducting their activities in the emirate of Dubai have reached 50% or more of their total annual profits or returns. Financial, or when the percentage of assets it owns within the Emirate of Dubai reaches 50% or more of its total assets, provided that non-local companies list their shares in this case within one year from the date of achieving any of the aforementioned ratios, while the decree excludes joint-stock companies Publications that are established under federal legislation mandatory to list in local stock markets.

The decree permits non-local companies to list their shares in the local stock markets in the Emirate of Dubai in the event that their annual profits, financial returns, or assets in the emirate do not reach the aforementioned ratios, provided that this listing is done in accordance with the terms, rules and regulations in force at the local stock markets. Those non-local companies want to be listed in.

Foreign companies
The decree authorized foreign companies that are established and licensed outside the country and have branches, assets, or activities in the Emirate of Dubai, to list their shares in the local stock markets in the emirate, whether as a primary or secondary platform, in accordance with the terms, rules, and regulations in force at the local stock markets Which foreign companies want to list their shares with.

Listing and trading of shares
The decree stipulates that the listing and trading of the shares of the companies covered by its provisions shall be in view of the nature of the company, the rules, conditions, and procedures adopted by the local stock markets, as well as according to what is being coordinated with the authorities overseeing the special development zones and the free zones, including the Dubai International Financial Center, for For companies licensed within these regions.

Scenic view of Dubai Marina in UAE in the evening

Duties of Licensing Authorities
The decree requires the licensing authorities in the Emirate of Dubai, represented by the Department of Economic Development, and the authorities supervising the special development zones and free zones, including the Dubai International Financial Center, to follow up on the compliance of local and non-local companies with the provisions of this decree, and to take the necessary measures against local companies. And non-local companies not committed to implementing its provisions, including canceling their registration and licensing with them, until they correct their positions in accordance with the provisions of this decree, in addition to coordinating with local stock markets to put this decree into effect.

Scenic view of Dubai Marina in UAE in the evening

Adjustment
The decree required all companies that are obligated to list their shares in the local stock markets in accordance with its provisions, to adjust their positions in accordance with the duties stipulated in the decree, within a period not exceeding one year from the date of its implementation, while the decree authorized the competent licensing authority in The Emirate of Dubai may extend the grace period granted to these companies according to the decree for a similar period in the circumstances that require it. This decree shall be published in the Official Gazette of the Government of Dubai and shall be enforced from the date of its publication.

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