Dubai plans to list Tecom, the owner and operator of investment free zones in the emirate, on the Dubai Financial Market, Sheikh Maktoum bin Mohammed, the UAE’s Deputy Prime Minister and Minister of Finance, said on Tuesday.
The listing is a part of the strategy of the Dubai Securities and Exchange Higher Committee to increase the size of the emirate’s stock market to Dh3 trillion ($816.7 billion), according to the Dubai Media Office.
Sheikh Maktoum was appointed by Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, this year to supervise the financial market and the stock exchange.
Dubai is looking to boost its stock market and attract more listings as it seeks to tap into a growing appetite for initial public offerings in the region.
On November 2, the emirate revealed plans to list 10 state-owned companies as part of its strategy to double the size of its capital market to Dh3tn and attract foreign investment.
Dubai Water and Electricity Authority, the government-owned utility company, will be the first entity to go public on the DFM in the “coming months”, Sheikh Maktoum said on Twitter at the time.
Road toll system Salik will also list, it was announced last month.
The Tecom Group is a business enabler that creates business communities. It has 10 business communities, which include Dubai Internet City, Dubai Media City, Dubai Design District and Dubai Industrial City.
“The Securities and Exchange Higher Committee’s strategy seeks to list government and state-owned companies on the DFM as part of its plans to accelerate new listings in various sectors including energy, logistics and retail, in addition to adopting innovative financial tools and instruments that meet the current needs of investors,” Dubai Media Office said.
In November, the emirate’s authorities also launched a market maker fund worth Dh2bn to encourage listings from sectors such as energy, logistics and retail.
A separate fund worth Dh1bn will be formed to attract technology companies to list in the local bourse and encourage innovative products, Sheikh Maktoum tweeted last month.
The DFM exchange has rallied more than 24 per cent since the start of the year and is dominated by financial services and property companies.
In November, Dubai appointed a new board of directors for the DFM that will be headed by Helal Al Marri, who will replace Essa Kazim as the bourse's chairman since its inception 20 years ago.
