H.H. Sheikh Hamdan launches dedicated stock market for SMEs

The Dubai Crown Prince has announced the launch of Nasdaq Dubai Growth Market to support small and medium-sized companies (SMEs) by raising capital through an initial public offering (IPO).

His Highness Sheikh Hamdan Bin Mohammed bin Rashid Al Maktoum, who also holds the position of the Chairman of the Executive Council of Dubai, said Dubai is keen to launch initiatives that will boost the economy locally, regionally or globally and stimulate growth across various sectors, while also creating an environment where businesses can prosper through forming partnerships and opportunities.

Part of the Dubai Future District project, the Nasdaq Dubai Growth Market will enable fast-growing companies to achieve a streamlined and cost-effective listing on the region’s international exchange.

It will welcome not only companies in the UAE, but also list companies from around the world to help them expand in the region and internationally. 

That's not all. The new stock market will add further momentum to Dubai and the UAE’s established role as the Middle East’s hub for business and finance and will serve as an ideal incubator for innovative projects, Sheikh Hamdan noted.

Today, we launched the @NasdaqDubai Growth Market to support young businesses & 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. pic.twitter.com/0jHmciBEQD

— Hamdan bin Mohammed (@HamdanMohammed) October 27, 2020

"SMEs are a key engine of our national economy. The launch of the Nasdaq Dubai Growth Market is a strategic step that will support this vital sector by opening new horizons for its companies and providing them with investment resources to expand their business and enhance their attractiveness in global markets," Sheikh Hamdan added.

The Nasdaq Dubai Growth Market will allow SMEs to list their businesses if they are valued below $250 million. A minimum operating history of just one year is required, compared to three years for Nasdaq Dubai’s main market.

Like Nasdaq Dubai’s main equity market, the Growth Market will allow owners of an enterprise to carry out their IPO while selling as little as 25% of the shares in their company, enabling them to keep control.

Nasdaq Dubai intends to launch the Growth Market in early 2021 in line with the first IPOs. 

Meanwhile, companies that are not ready for an IPO will be able to join the Private Market segment of the Growth Market.