Companies in Dubai raised Dh34.5 billion ($9.4 billion) through selling shares on the Dubai bourse in the past three years, amid strong investor interest.
Aggregate investor demand for those listings reached more than Dh1 trillion, according to the Dubai Securities and Exchange Higher Committee.
The continued initial public offering activity in that period has helped the Dubai Financial Market maintain a robust growth momentum, pushing its general index to become the fifth-best performer globally last year, the Dubai Media Office said on Wednesday, citing a briefing by the committee.
The DFM General Index, delivered “exceptional performance” last year, crossing the 4,000-point mark for the first time in eight years, the committee briefed Sheikh Maktoum bin Mohammed, Deputy Prime Minister, Minister of Finance and First Deputy Ruler of Dubai, during the meeting.
“The accomplishments of the Securities and Exchange Higher Committee in advancing capital markets have played a crucial role in fostering growth and consolidating Dubai’s leading position on the global financial stage, aligning with our comprehensive vision for the emirate,” Sheikh Maktoum, who also chairs the higher committee, said.
A significant increase in trading activities, a rise in capital inflows and an influx of investors drove the record performance of the emirate’s bourse.
The DFM, which surpassed major global markets last year, has attracted 230,000 new investors since 2022, which improved its capitalisation to Dh688 billion at the end of last year, up from Dh582 billion, recorded a year earlier, according to the media office statement.
The DFM, like its peers in the six-member economic bloc of GCC, has performed well over the past two years, driven by continued economic momentum in the emirate’s economy and a flurry of public listings by private and state-owned companies.
Companies in the wider region raised $10.79 billion in IPOs last year, investment strategy and research company Kamco data showed.
The UAE, the Arab world's second-largest economy, topped in terms of the funds raised last year in the GCC through IPOs. Issuers secured $6.07 billion from eight listings on UAE exchanges, accounting for about 56.3 per cent of total proceeds, according to Kamco.
The positive performance of most of the listed stocks is also expected to encourage more firms to list this year.
Parkin, the company set up by Dubai to oversee parking operations, is currently raising as much as Dh1.57 billion from its public float on the Dubai bourse.
The company's IPO comes after Dubai in November 2021 announced plans to list 10 state-owned companies, aiming to expand the size of its financial market to Dh3 trillion.
It also established a Dh2 billion market maker fund to encourage listings from private companies in sectors such as energy, logistics and retail.
Five state-owned enterprises have been listed on the DFM since 2022 and more are likely to list shares in addition to Parkin.
The listing of Dubai Electricity and Water Authority was the largest GCC IPO in 2022, raising $6.1 billion when it listed 18 per cent of its share capital.
Tecom Group raised Dh1.7 billion in a 21 times oversubscribed deal.
Other companies that have listed shares on the DFM so far include Union Co-op, Salik, Emirates Central Cooling Systems Corporation (Empower), Dubai Taxi, Taaleem Holdings and Al Ansari Financial Services.
Seven tips from Emirates NBD
1. Never respond to e-mails, calls or messages asking for account, card or internet banking details
2. Never store a card PIN (personal identification number) in your mobile or in your wallet
3. Ensure online shopping websites are secure and verified before providing card details
4. Change passwords periodically as a precautionary measure
5. Never share authentication data such as passwords, card PINs and OTPs (one-time passwords) with third parties
6. Track bank notifications regarding transaction discrepancies
7. Report lost or stolen debit and credit cards immediately
ESSENTIALS
The flights
Fly Etihad or Emirates from the UAE to Moscow from 2,763 return per person return including taxes.
Where to stay
Trips on the Golden Eagle Trans-Siberian cost from US$16,995 (Dh62,414) per person, based on two sharing.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
'Worse than a prison sentence'
Marie Byrne, a counsellor who volunteers at the UAE government's mental health crisis helpline, said the ordeal the crew had been through would take time to overcome.
“It was worse than a prison sentence, where at least someone can deal with a set amount of time incarcerated," she said.
“They were living in perpetual mystery as to how their futures would pan out, and what that would be.
“Because of coronavirus, the world is very different now to the one they left, that will also have an impact.
“It will not fully register until they are on dry land. Some have not seen their young children grow up while others will have to rebuild relationships.
“It will be a challenge mentally, and to find other work to support their families as they have been out of circulation for so long. Hopefully they will get the care they need when they get home.”
