According to the Regional Outlook for Banking and Capital Markets 2024 report, regional IPO growth is expected to occur in three phases. First, there will be continued privatization of state-related entities. This will be followed by listings from family-owned companies, and finally, IPOs from FinTech and tech-enabled startups.
Dubai’s appeal as a financial hub
The convergence of state and private IPO listings, coupled with a subsequent increase in financial services fees and a growing population of high-net-worth individuals, has bolstered Dubai’s appeal. The emirate’s tax-efficient and demonstrably resilient economy has not only attracted foreign direct investment, but also provided a valuable incentive for banks, brokerages, and law firms to either strengthen their presence in Dubai or establish a new one.
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DIFC’s role in driving innovation
Arif Amiri, chief executive officer of the DIFC Authority, commented on the findings. He noted that the MENA region’s capital markets have experienced remarkable expansion, driven by a surge in IPOs and reforms aimed at enhancing market infrastructure and attracting greater foreign and regional investment. Amiri highlighted that DIFC plays a pivotal role in driving innovation and stimulating growth within the financial sector through its strategic initiatives and robust regulatory framework. He stated that Dubai’s IPO boom underscores the city’s status as a thriving hub for capital markets, and DIFC’s role in enabling this acceleration through the firms that drive capital markets and provide advisory services for IPOs will continue to contribute to the dynamic evolution of global finance.
Innovation Hub
In May 2024, Mohammad Alblooshi, chief executive officer of the Innovation Hub affiliated with the Dubai International Financial Centre (DIFC), highlighted the significant contribution of the Hub to the continuous growth of the financial and technological sectors. Moreover, he stated that the Hub provides a platform for approximately 900 specialized financial technology (fintech) companies. Alblooshi further underscored DIFC‘s role in fueling this growth by attracting companies in the fintech domain, which is supported by increased investments and innovation.
New Digital Assets Law
In March 2024, DIFC announced the enactment of the world’s first Digital Assets Law, a new law of security and related amendments.
The legislative enactments further aim to ensure DIFC laws keep pace with the rapid developments in international trade and financial markets arising from technological developments, and to provide legal certainty for investors in, and users of, digital assets.
Existing DIFC laws such as the contracts law, law of obligations, law of security, law of damages and remedies, trust law and foundations law have also been updated.
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