His Highness Sheikh Hamdan Bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council of Dubai, has announced the launch of the Nasdaq Dubai Growth Market. The aim is to help SMEs reach the next phase of growth, by raising capital through an initial public offering (IPO). It will allow fast-growing companies to achieve a streamlined and cost-effective listing on the region’s international exchange. The aim is to help SMEs reach the next phase of growth, by raising capital through an initial public offering (IPO). It will allow fast-growing companies to achieve a streamlined and cost-effective listing on the region’s international exchange.

H.H. Sheikh Hamdan is eager for Dubai to launch initiatives such as this one to enable growth across several sectors. As well as to create a supportive, collaborative environment for businesses to prosper. The initiative will fall under the Dubai Future District (launched by His Highness Sheikh Mohammed bin Rashid Al Maktoum) as the largest specialized area in the region for creating the future economy by providing an investment, technical, legislative, service and incentive environment. The district links Emirates Towers with the Dubai World Trade Centre and the DIFC.

H.H. Sheikh Hamdan commented, “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.”

While Nasdaq Dubai’s main market requires a minimum operation of three years, the Nasdaq Dubai Growth Market only requires one. Additionally, if businesses are valued below $250M, the initiative will allow them to be listed. Also, similar to 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. Thus allowing them to keep control of their business.

The initiative will launch early next year in line with the first IPOs. Companies that are not ready for an IPO will, however, be able to join the Private Market segment of the Growth Market.