[Last updated: 1 January 2024, unless otherwise noted]
To qualify under the Market Rules of the Dubai Financial Services Authority (DFSA), a company seeking a listing on NASDAQ Dubai typically must have:
- A market capitalization of at least US$10 million.
- Sufficient working capital available for its present requirements to the satisfaction of the DFSA.
A working capital report is required.
[Last updated: 1 January 2024, unless otherwise noted]
Share price. Nasdaq Dubai allows a book building process for IPOs and thus issuer can price their IPO share price.
Distribution. To list its existing securities or to transfer its listing to Nasdaq Dubai, a company must satisfy the following requirements:
- At least 250 shareholders, each holding at least US$2,000 of shares.
- At least 25% of shares held by the public.
Shares must be duly authorized, validly issued, fully paid, freely transferable and free from any liens or restrictions on transfer.
Accounting standards. Audited financial statements must be prepared in compliance with IFRS (as issued by IAASB).
Financial statements. Generally, three years of audited financial statements are required.
Operating history. An operating history of three years is generally required.
Management continuity. Nasdaq Dubai does not require any specific period of continuity of management.
[Last updated: 1 January 2024, unless otherwise noted]
Listing involves registering the class of securities on the Official List of Securities. The DFSA will review and approve the prospectus. The following is a fairly typical process and timetable for a listing on Nasdaq Dubai.
[Last updated: 1 January 2024, unless otherwise noted]
The DFSA’s corporate governance principles generally cover the following areas:
- Role of the board of directors.
- Division of responsibility between board and management.
- Board composition and resources.
- Risk management and internal control systems.
- Shareholder rights and effective dialogue.
- Financial position and prospects.
- Remuneration structures and strategies.
The DFSA adopts a “comply or explain” approach to its corporate governance best practice standards.
A listed company has disclosure and reporting obligations both to the DFSA and Nasdaq Dubai.
There are no UAE residency requirements for directors or officers.
[Last updated: 1 January 2024, unless otherwise noted]
A company seeking to list on Nasdaq Dubai must pay application fees, initial listing fees and annual fees. Application fees are US$5,000. Initial listing fees for shares are calculated based on total number of securities admitted, ranging from US$70,000 to US$250,000. The annual fees for shares are calculated based on total number of securities admitted, ranging from US$20,000 to US$50,000. Application and initial listing fees for secondary listings where no capital is raised are between US$20,000 and US$50,000.