New Dubai stock market a major boost for SMEs

The Nasdaq Dubai Growth Market for small and mid-sized companies will enable fast-growing companies in the region to achieve affordable listings. They also create major opportunities for investors looking for access to small businesses in a post-Covid economy.

launched on the directives of Sheikh Hamdan Bin Mohammad Bin Rashid Al Maktoum, the new stock market for small and mid-sized companies will be operated by Nasdaq Dubai and host companies from the UAE as well as those from outside looking to expand in the region as part of the Dubai Future District project.

The SME bourse is excellent news as it will provide access to funding for businesses with a market capitalisation that is too small to list on the UAE’s main bourses — in this case undertakings valued at less than $250 million (Dh917.5 million) with a minimum operating history of one year, as compared to three years for Nasdaq Dubai’s main market.

Like Nasdaq Dubai, the Growth Market will allow owners to carry out the IPO while selling only 25 per cent of the shares in their company.

In addition, the flexible options provided by the Nasdaq Dubai Growth Market will also enable several SMEs access to the equity market in ways that were never possible earlier. Access to equity markets will also significantly ease the pressure off SMEs to seek more expensive bank loans to grow their businesses.