It's time for some big moves on the Dubai Financial Market (DFM)… the stock exchange wants to expand its size in the coming months to AED 3t ($816b). One trick up its sleeve is to list 10 state-owned companies on the exchange — Dubai Electricity and Water Authority (DEWA) will be one of them. DFM also approved a AED 1b ($367m) fund to encourage tech companies to list on the exchange.
DFM's move comes amid a series of de-listings and a lack of major IPOs on its exchange so far in 2021. After these latest announcements, the index registered a 2.6% growth.
Why it matters
This move follows Saudi Arabia's and Abu Dhabi's recent listings of several state-backed companies such as ACWA Power and ADNOC. Both stock exchanges (Tadawul and ADX) have witnessed a significant expansion in 2021, with larger listings and greater liquidity, and Dubai doesn't want to be left behind.
