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Nasdaq Dubai Growth Market –Dedicated to SMEs

“Today, we launched the Nasdaq Dubai Growth Market to support young businesses and SMEs – one of the pillars of our economy. Dubai seeks to open new opportunities for entrepreneurs, to help them expand, attract investors, & finance their projects” tweeted His Excellency Sheikh Hamdan bin Mohammed, Crown Prince of Dubai on October 27th, 2020.

Nasdaq Dubai intends to make live under its mandate, the ‘Growth Market’ by the initial months of 2021. Any SMEs standing below the value of $250 million and have been in business for at least a year (as opposed to three years for Nasdaq Dubai’s main market) are welcome to sign up. It will also admit companies from outside looking to expand in the region.

The Growth Market is expected to help business owners raise capital with the IPO selling only 25% of their company shares.

H.E Sheikh Hamdan stated that this is a “strategic step” as an attempt to support major sectors in Dubai by opening “new horizons” for companies and giving them resources for investments to help expand their businesses and also broaden their reach to global markets.

H.E Sheikh Hamdan also tweeted that this Market, on initiation, is expected to reinforce the UAE, as well as Dubai’s role as the “Finance hub”, proving businesses the opportunity to drive the economy forward.

Additionally, companies that are not yet ready to proceed with IPO can join the ‘Private Market’ division of the Nasdaq Dubai Growth Market. In this case, the company shares are held in the Central Securities Depository (CSD) for safety purposes. This helps the company to move towards an ‘exchange environment’ as well as encourage investors to contribute ahead.

Essa Kazim, Governor of Dubai International Financial Centre, and Chairman of Dubai Financial Market, believes that the Growth Market shall “play a key role in the future of capital-raising and the channelling of investment to enterprising companies.”

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