FINANCIAL NEWS

Dubai to launch alternative stock market

21 Jul 2010

(MENAFN) A chief economist at the Dubai International Financial Centre (DIFC) said that the emirate is planning to set up a tier two stock market aimed at listing small- and medium-sized companies that wish to list and trade a relatively small portion of their capital, Reuters reported.

The new market, an initiative by the DIFC, will function as an alternate market similar to the AIM (The Alternate Investment Market) in London that allows smaller companies to float their shares by lowering the regulatory threshold in comparison to a main market.

DIFC expects to replicate a similar success achieved by the AIM. Since its launch in 1995, over 3,000 companies from across the globe have listed on the AIM.

The official said it was too early to say where the market would be established, under which regulation it would operate and whether it would span different countries in the Gulf. However, he said it is a different initiative from Nadaq Dubai or Dubai Financial Market (DFM).

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