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Dubai to launch Dh2 billion fund to boost liquidity in the markets

Listing of 10 government and state-owned companies on the Dubai Financial Market announced by Sheikh Maktoum.

Dubai on Monday announced plans to launch a Dh2 billion ($544.6 million) market-maker fund to boost trading on the stock market.

Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, and Deputy Prime Minister and Minister of Finance of the UAE, announced the listing of 10 government and state-owned companies on the Dubai Financial Market (DFM) as part of accelerating new listings in various sectors including energy, logistics and retail.

Sheikh Maktoum, who oversees stock market and bourses in the emirate, also approved the launch of a Dh1 billion fund to encourage technology companies to list on the local bourse.

The Minister of Finance, who had the first meeting of the Securities and Exchange Higher Committee, also announced the formation of a Dubai Markets Supervisory Committee and specialised courts for capital markets in Dubai. He said that as part of the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, the emirate aims to increase the total volume of its stock markets to Dh3 trillion.

Mohammed bin Abdullah Al Gergawi, Minister of Cabinet Affairs; Mohamed Hadi Ahmed Al Husseini, Minister of State for Financial Affairs; Omar bin Sultan Al Olama, Minister of State for Artificial Intelligence, Digital Economy and Remote Work Applications; Essa Kazim, Governor of the Dubai International Financial Centre; Helal Al Marri, Director-General of Dubai’s Department of Tourism and Commerce Marketing and Dubai World Trade Centre; Faisal bin Sulaiten, Executive Director of the Economic Security Centre of Dubai; Fadel Al Ali, Chairman of the Board of Directors of the Dubai Financial Services Authority; and Hamad Buamim, Director-General of the Dubai Chamber of Commerce and Industry, also attended the meeting.

The Securities and Exchange Higher Committee approved the establishment of a market, making the fund worth up to Dh2 billion to increase liquidity in the markets. The committee will also launch an Dh1 billion fund to support tech company IPOs and encourage innovative financial products and solutions.

Furthermore, the committee will mandate the study of a regulatory framework to attract new digital assets to operate from Dubai, in addition to supporting Environmental, Social, and Governance (ESG) factors and reporting in operations, which will contribute to shaping Dubai’s future economy.

The committee, which is charged with developing the vision for the financial sector and evaluating plans and policies to meet strategic objectives, approved the formation of the Dubai Markets Supervisory Committee, chaired by Dr Abdulla Al Ghafari. The committee will be responsible for supervising, monitoring and protecting the rights of shareholders and investors, and enhancing transparency and enforcement in Dubai’s securities and commodities markets through effective coordination between relevant stakeholders.

The committee also approved the formation of two specialised courts within the Commercial Court to settle securities disputes starting from January 2022. The courts will be dealing with both major and minor disputes based on the financial value of each case.