Jebel Ali Free Zone Authority (Jafza) said today in a media statement that it encourages free zone-registered companies to raise capital through the equity market by listing on Nasdaq Dubai to fund their growth.
Jafza has created a new business framework enabling companies in the Free Zone to apply to directly list shares on the exchange, the company said in its statement.
Salma Ali Saif bin Hareb, CEO Economic Zones World, the parent company of Jafza, said: “Businesses are always in search for capital, and the equity market serves as an important source. Jafza is beyond just servicing customers or a physical location for business set up.
Jafza is an eco-system that nurtures its members, providing them with all the ingredients for success, to reduce cost and maximise revenue, by giving efficient access to markets, suppliers, and capital.”
Hamed Ali, Chief Executive of Nasdaq Dubai, said: “As the region’s international exchange, Nasdaq Dubai can offer Jafza companies a high public profile globally as well as a platform for capital-raising. The exchange welcomes listings of regional arms of international companies, as well as regionally owned businesses, and we look forward to working with Jafza companies to explore listing opportunities.”
Jafza hosts more than 7,300 companies that are engaged in trade and manufacturing activities in diverse sectors including electronics, chemicals and petroleum products, construction material, automotive, machinery and equipment, food, healthcare and pharmaceuticals among others.
Companies can carry out an initial public offering (IPO) or other share listing on the exchange by listing as little as 25 per cent of their shares, allowing owners to keep control of the business. They need a market capitalisation of $10 million or more, allowing a wide range of businesses to utilise the exchange as a listing venue.
A listing in Dubai enables companies to access regional and international investors from the Middle East’s most dynamic economic and financial centre. Jafza companies can apply for a primary or dual listing on Nasdaq Dubai. An application to list must be made to the Dubai Financial Services Authority, the regulator of the exchange.
Jafza and Nasdaq Dubai will continue to work together to promote financing solutions for Jafza companies through IPOs and other means of capital-raising, the statement noted.