UAE To Launch New Market For Trading Private Firm Shares

The UAE’s plans to launch a second financial market to trade stocks of private firms has been approved by the country’s VP and PM Sheikh Mohammed bin Rashid Al Maktoum, state news agency WAM reported.

The initiative will help improve corporate governance and transparency among companies while strengthening the anti-money laundering efforts.

The plan to launch a second market targeting almost 135 private firms was first announced in February this year by the Securities and Commodities Authority (SCA). It will be operational within the next few months, the official agency said.

“The launching of the second market, which is solely for trading of shares of private companies, is part of the SCA’s comprehensive strategy aimed at achieving leadership in developing the financial markets and in contributing to the development of the national economy according to the best international standards and practices,” said Sultan bin Saeed Al Mansouri, minister of economy and chairman of the SCA.

He added that private joint stock firms from across the Gulf will be able to list in the secondary market.

Abdulla Al Turifi, CEO of SCA, said that the new market will also add more value to the market and investors.

He said that a secondary listings market would also help firms achieve better pricing.

“The second market concept hinges on the listing of stocks of private joint stock companies on a market set up inside all the markets in the country, where there will be trading, clearance and settlement operations on a separate screen other than the official screen of the main market,” the statement from WAM said.