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UAE Companies have green light for IPOs

UAE Companies have green light for IPOs

The New Companies Law offers legal revisions necessary to encourage UAE companies to pursue initial public offerings, to respond to changes in global capital markets, and to fulfill the UAE's evolving economic demands, among other things.

As the commercial hub tries to catch up with Abu Dhabi and Riyadh in the Middle East IPO race, Dubai aims to promote private and family-owned businesses to float on its stock exchange. According to a statement, the city's economic and tourist ministries amalgamated on Saturday. One of the new entity's key duties is to encourage private and family-owned firms to sell shares on the Dubai exchange.

The United Arab Emirates' financial markets are heating up as Dubai attempts to save its floundering stock exchange with a flurry of initial public offerings.

Federal Law No. 32 of 2021 on Commercial Companies (New Companies Law) will go into effect on January 2, 2022, and will replace Federal Law No. 2 of 2015 on Commercial Companies, as amended. The New Firms Law modifies and adds to the provisions of the 2015 Law relating to limited liability companies (LLCs) and public joint stock companies (PJSCs).

The New Companies Law addresses many of the difficulties that the market and IPO advisers have continually sought exemptions or waivers from during an IPO. The IPO process and processes have been simplified for potential issuers, making a listing on the UAE's securities markets more appealing.