Sheikh Maktoum Praises Dubai Securities And Exchange Committee's Achievements

H.H. Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister, and Minister of Finance of the UAE, and Chairman of the Dubai Securities and Exchange Higher Committee, recently presided over a pivotal meeting of the Committee. This session was marked by a detailed review of the Committee's achievements and a forward-looking discussion on its strategic projects. The commitment to realizing the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum for Dubai to become a leading global financial hub was reiterated, with an emphasis on aligning these ambitions with the Dubai Economic Agenda D33.

The meeting underscored the Committee's role in propelling the capital markets forward, thereby reinforcing Dubai's stature on the international financial scene. This progress is seen as integral to the broader vision for the emirate.

2023 has been a landmark year for the Dubai Financial Market (DFM), as highlighted during the meeting. Notably, the DFM surpassed the 4,000-point mark for the first time in eight years, driven by an upsurge in trading activities, capital inflows, and a surge in new investors. The introduction of innovative market initiatives, including an enhanced digital platform and an IPO accelerator programme, alongside hosting the MENA IPO Summit, were pivotal in achieving this success.

The DFM General Index (DFMGI) clinched the fifth position globally in 2023, outperforming major markets and attracting 230,000 new investors since 2022. Market capitalisation also saw significant growth, escalating from AED582 billion at the end of 2022 to AED688 billion in 2023. With AED34.5 billion raised in IPO proceeds on the DFM and demand exceeding AED1 trillion since 2021, Dubai's capital markets have become a crucial hub for entities seeking funding.

In 2023, several new initiatives were introduced to enhance market depth and liquidity. These included collaboration with DFM’s market maker xCube to launch a digital account opening platform and initiatives aimed at promoting sustainable financing. The Carbon Credit Trading Pilot programme launched at COP28 and efforts to boost green bonds and sukuk issuance are notable examples.

Furthermore, the establishment of the Financial Markets Law Enforcement Committee in Dubai aims to oversee financial markets more effectively. This committee is tasked with monitoring financial activities, facilitating business operations, detecting violations, enforcing laws, and issuing local financial market legislations.

Key Listings Drive Market Growth

The meeting also reviewed significant listings on the DFM from 2022 and 2023. Among these were the AED22.3 billion IPO of Dubai Electricity and Water Authority (DEWA), which represented 18 percent of its issued capital. The TECOM Group's IPO was another highlight, being oversubscribed by 21 times and raising AED1.7 billion. Other notable listings included Union Coop, Salik, Emirates Central Cooling Systems Corporation (Empower), Dubai Taxi, Taaleem Holdings, Al Ansari Financial Services, and the anticipated Parkin IPO.

This comprehensive briefing underscores Dubai's strategic efforts to enhance its financial market infrastructure and offerings. Through innovative initiatives and regulatory measures, alongside significant market listings, Dubai continues to solidify its position as a leading global financial hub.

With inputs from WAM