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13 December 2024

DFM launches ARENA: Dubai's private market for capital raising, listing, investments

Published
By E247

At the second edition of the MENA Capital Market Summit, Dubai Financial Market (DFM), the region’s leading financial market, unveiled its flagship initiative – ARENA by DFM - an innovative platform for Initial Private Offerings. Designed to catalyze growth opportunities for both companies and investors, DFM Arena represents a pioneering approach to capital raising and investment within the MENA region.

provides a platform for a wide range of private companies, including family conglomerates, Small and Medium Enterprises, and businesses at various growth stages. Through this platform, companies can access capital through diverse assets including equity and debt with plans to introduce additional asset classes. Additionally, venture capital firms can expand their investor base by selling private market shares, thus establishing a previously unavailable liquidity pool.

Additionally, privately listed companies on ARENA will have the option of limiting investor’s access to institutional investors, employees-only, or family and founding members, offering a unique Pre-IPO listing option.

For companies seeking to raise over AED 35 million, ARENA offers cost-effective access to an extensive network of investors and fosters a collaborative approach with transparency throughout the process. Serving as a regulated alternative to conventional financing routes, ARENA empowers private enterprises to access capital markets directly and engage with DFM’s purpose-built book-building process. With streamlined offerings, including memorandum review and timelines, issuers can significantly reduce transaction costs.

For investors, DFM Arena provides exclusive access to DFM private market investments, including early-stage growth opportunities to diversify their investment portfolios.
DFM's CEO, Hamed Ali, emphasized the significance of the initiative, stating: "The announcement of ARENA marks a pivotal moment in DFM's commitment to providing issuers with a transparent and streamlined avenue for capital raising. The platform combines the advantages and efficiency of direct listing with the DFM’s diverse investor base and capabilities.

Additionally, it enables investors to easily access private investments in the UAE's most promising companies and brands, unlocking investment opportunities that were previously inaccessible. Furthermore, ARENA acts as a catalyst to enhancing the funding ecosystem for growth companies, paving the way for a more vibrant and inclusive investment ecosystem.

 

Through a technology-powered platform, ARENA is designed to facilitate seamless processes, including due diligence, book building, brokered trades, and settlement, fundamentally reshaping the landscape of investment accessibility and efficiency.”