Abu Dhabi's Supreme Council For Financial And Economic Affairs Launches AED5 Billion IPO Fund To Boost Abu Dhabi Securities Exchange

The launch comes in the midst of the Abu Dhabi government's initiatives to attract more investors into its business ecosystem in the near future.


You're reading Entrepreneur Middle East, an international franchise of Entrepreneur Media.

Abu Dhabi's Supreme Council for Financial and Economic Affairs, an entity set up by the UAE government to supervise matters related to the capital's financial, investment, economic, petroleum and natural resources issues, has launched an AED5 billion IPO Fund in an effort to catapult the Abu Dhabi Securities Exchange (ADX) into becoming one of the world's leading stock markets, according to a tweet posted by the Emirate's media office.

The IPO fund, which will be managed by managed by the Abu Dhabi Department of Economic Development (ADDED), will be investing in five to ten private companies in a given year, with a keen focus on targeting small and medium enterprises (SMEs), and will have a target tick size of between 10% and 40% of the float. This launch comes in the midst of the Abu Dhabi government's initiatives to attract more investors into its business ecosystem in the near future.

"The Abu Dhabi IPO Fund will incentivise more private companies, including SMEs, to list, by providing liquidity and by building additional confidence around IPOs through encouragement of additional private sector investment," said H.E. Mohamed Ali Al Shorafa, Chairman of ADDED and ADX. "It will also promote a shift from relying on debt financing to fostering a greater use of equity instruments. By deepening financial markets and promoting an investment culture across the UAE's economy, the launch of the Abu Dhabi IPO Fund will further strengthen ADX's position as a leading stock exchange."

According to a report by Zawya/Reuters, the Abu Dhabi stock index (.ADI) has been up 54% per year till date, in a performance that has been boosted by higher oil prices as well as through incentives to increase trading. In 2021 alone, the stock index has seen a surge in listings, with companies that fall under state-owned oil company Abu Dhabi National Oil Co (ADNOC) as well as Emirati state-owned holding company Mubadala Investment Company PJSC being listed on the index. The report also mentioned that oil and gas drilling company ADNOC Drilling was listed on Abu Dhabi stock index in September this year while ADNOC's fertiliser joint venture Fertiglobe will be listed in the weeks to come. Abu Dhabi-based holding company International Holding Co. recently announced that it will be listing six of its companies on the stock exchange as well.

Related: Abu Dhabi-Headquartered Anghami Becomes The First Arab Tech Company To List On NASDAQ New York

Related Topics

Growing a Business

Rudy Mawer Shares 10 Ways To 10x Your Business

Learn the tactics needed to exponentially grow your revenue


The Bootstrapped Billionaire: Zoho Corporation Co-Founder And CEO Sridhar Vembu

Sridhar Vembu, co-founder and CEO of the billion-dollar Zoho Corporation, explains how the soul of his company remains grounded despite its growth.


How to Detect a Liar in Seconds Using Nonverbal Communication

There are many ways to understand if someone is not honest with you. The following signs do not even require words and are all nonverbal queues.

Thought Leaders

How Success Happened for Paul English, Co-Founder of Kayak and Lola.com

The serial entrepreneur who sold Kayak for $1.8 billion reveals how he's planning to reshape the podcast industry.

Growth Strategies

In Conversation With 500 Global's Amal Dokhan On Nurturing Early-Stage MENA Startups

500 Global is a global venture capital firm headquartered in San Francisco, United States, that invests across stages with a focus on technology and innovation.