Dubai Financial Market (DFM) today announced it has signed a Memorandum of Understanding (MoU) with Sharjah Investment and Development Authority (Shurooq), creating the necessary foundation for an extensive cooperation between the two sides. The agreement aims at streamlining private and family businesses’ access to DFM’s innovative services and realizing the numerous benefit of going public and listing on DFM.
His Excellency Essa Kazim, Chairman of DFM and His Excellency Marwan Al Sarkal, Chief Executive Officer of Shurooq have signed the MoU in the presence of senior representatives from both sides.
According to this agreement, the two sides will outline and jointly implement a concerted effort to further increase awareness amongst Sharjah-based private and family businesses’ about the vital role of capital markets, prospects of going public and listing on DFM and the streamlined access to the market.
The agreement also facilitates the listing of Sharjah’s Private Joint Companies on DFM’s Second Market platform as an alternative option to the IPO and main market listing.
Commenting on this, HE/ Essa Kazim, Chairman of DFM, DFM said: “We are delighted to sign this significant agreement with the Sharjah Investment and Development Authority (Shurooq), as this agreement underlines both sides commitment to jointly work to promote best practices and empower business sectors in the UAE. Considering the many dynamic and growing private and family businesses in Sharjah, the agreement is a significant step in our efforts to achieve our strategic objective by further attracting companies from various economic sector to the market. DFM is always committed to collaborate with various institutions in order to empower business sectors through promoting best practices of Corporate Governance, Investor Relations and transparency, which positively implicates operational efficiency.”
The agreement outlines ways of sharing knowledge and market intelligence on potential companies that are eligible to go public and list on DFM as well as jointly organizing workshops for private and family businesses on the IPO regulatory framework, highlighting the benefits of going public in realizing companies’ growth strategies.
For his part, H.E. Marwan bin Jassim Al Sarkal, CEO of Shurooq, said: “The Dubai Financial Market is one of the region’s premium stock exchange markets, given its legislative environment and the modern technologies it provides to companies and investors. We believe that it is important to list family businesses on the stock market, as this will have a positive impact on the economy at the national level. We perceive this agreement to be a significant step towards this.”
“Sharjah’s attractive business environment has led to the establishment of large family companies that have achieved remarkable success. I would advocate that these businesses initiate their transformation into public shareholding companies, given the great benefits associated with such a move. The implementation of governance and transparency will further the competitiveness, sustainability and expansion of these companies,” Al Serkal added.
“The listing of family companies on the Dubai Financial Market will achieve many economic objectives, both for owners and for the national economy. It will create new opportunities and helps ensure sustainability and ongoing growth and engagement. Typically – as a rule – family companies are sustainable up to the third generation. Shurooq will therefore promote the idea of transforming into shareholding companies among large and successful private and family companies in Sharjah, with the aim of including them in the Dubai Financial Market,” he noted.
DFM and Shurooq will cooperate in promoting best practices of Corporate Governance and Investor Relations amongst potential issuers as well as DFM’s innovative services for current and potential issuers through series of workshops and training courses for family and private businesses in Sharjah.