The UAE is encouraging more family-owned businesses to list shares on the country's stock exchanges in a move to enable easier succession in companies and provide more liquidity to local bourses, a top government official said.
"It is encouraged a lot, we've seen family-owned businesses structure themselves to be able to exit partially or fully into IPO [initial public offering]," Ahmad Al Falasi, Minister of State for Entrepreneurship and SMEs, told The National on the sidelines of the Top CEO Forum in Dubai on Thursday.
"Once you list that company, the level of data that goes into the processes makes it easier as well for succession, for inheritances, because you are now being listed, you're reporting and auditing, you're in a shareholder structure that makes it much more friendly for succession as well," he said.
Additionally, listing more family-owned businesses that are "big names" and "big conglomerates" is injecting significant levels of liquidity into UAE's stock markets, Mr Al Falasi said.
"Adding that liquidity ... goes a very long way," the minister said.
However, some family business owners choose to retain control of the business, he said.
"It's difficult to understand that you can still be a family business and listed ... when you list you're not giving away your company, you're becoming much more better structured."
The Abu Dhabi Securities Exchange, the second-biggest bourse in the Arab world after Saudi Arabia's Tadawul Stock Exchange, more than doubled its market capitalisation last year to a record Dh1.6 trillion — making it one of the best performing exchanges globally in 2021.
Despite subdued IPO activity globally in the wake of Russia's war in Ukraine that has roiled equities and commodities markets, interest in IPOs has remained strong in GCC markets. Higher oil prices and a strong economic recovery have boosted investor confidence and shored up liquidity in the UAE's capital markets.
Dubai, which aims to boost its stock market amid a growing appetite for IPOs in the region, revealed plans last year to list 10 state-owned companies as part of its strategy to double the size of its capital market to Dh3tn and attract foreign investment.
Family businesses account for about 90 per cent of private companies in the UAE. The UAE Ministry of Economy said last year it was considering new policies to help family businesses grow as they form a vital part of the country's continuing transition to a more sustainable economy.
In January, the UAE issued a new family business ownership governance law, further strengthening the sector’s contribution to the economy and facilitating the transition to successive generations.
The focus is now on the small-to-medium segment of family businesses and offering them guidelines on best practices, Mr Al Falasi said.
"What we've found increasingly difficult in the region is that third-generation family owners run the business as a one-man show. We want them to structure the business in a way that uses continuity going forward — that doesn't necessarily happen until they reach the multibillion [stage]."
Consultations are under way with a group of small-to-medium-sized family businesses to understand their requirements, Mr Al Falasi said.
Such companies highlighted the need for guidelines on structuring their businesses, getting access to affordable legal advice on structuring and changing the mindset on talking about succession within different generations in a family-owned firm, he said.
Policymakers are encouraging more family businesses to go public by making the markets more appealing and more liquid and adjusting regulations to make it easier for these companies to list, Mr Al Falasi said, pointing to the Nasdaq Dubai Growth Market, a financial exchange launched in 2020 to help small, fast-growing companies to access capital markets.
The exchange allows listings of SMEs with a value of below $250 million. Companies only need to have operated for one year, compared to three for Nasdaq Dubai's main market, and can sell a minimum of 25 per cent of their equity, allowing founders to retain control.
Meydan racecard:
6.30pm: Al Maktoum Challenge Round 2 (PA) Group 1 | US$75,000 (Dirt) | 2,200 metres
7.05pm: UAE 1000 Guineas (TB) Listed | $250,000 (D) | 1,600m
7.40pm: Meydan Classic Trial (TB) Conditions | $100,000 (Turf) | 1,400m
8.15pm: Al Shindagha Sprint (TB) Group 3 | $200,000 (D) | 1,200m
8.50pm: Handicap (TB) | $175,000 (D) | 1,600m
9.25pm: Handicap (TB) | $175,000 (T) | 2,000m
10pm: Handicap (TB) | $135,000 (T) | 1,600m
England 12-man squad for second Test
v West Indies which starts Thursday: Rory Burns, Joe Denly, Jonny Bairstow, Joe Root (captain), Jos Buttler, Ben Stokes, Moeen Ali, Ben Foakes, Sam Curran, Stuart Broad, Jimmy Anderson, Jack Leach
ITU Abu Dhabi World Triathlon
At Eternity’s Gate
Director: Julian Schnabel
Starring: Willem Dafoe, Oscar Isaacs, Mads Mikkelsen
Three stars
Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
RESULT
Copa del Rey, semi-final second leg
Real Madrid 0
Barcelona 3 (Suarez (50', 73' pen), Varane (69' OG)
The Freedom Artist
By Ben Okri (Head of Zeus)
Brown/Black belt finals
3pm: 49kg female: Mayssa Bastos (BRA) v Thamires Aquino (BRA)
3.07pm: 56kg male: Hiago George (BRA) v Carlos Alberto da Silva (BRA)
3.14pm: 55kg female: Amal Amjahid (BEL) v Bianca Basilio (BRA)
3.21pm: 62kg male: Gabriel de Sousa (BRA) v Joao Miyao (BRA)
3.28pm: 62kg female: Beatriz Mesquita (BRA) v Ffion Davies (GBR)
3.35pm: 69kg male: Isaac Doederlein (BRA) v Paulo Miyao (BRA)
3.42pm: 70kg female: Thamara Silva (BRA) v Alessandra Moss (AUS)
3.49pm: 77kg male: Oliver Lovell (GBR) v Tommy Langarkar (NOR)
3.56pm: 85kg male: Faisal Al Ketbi (UAE) v Rudson Mateus Teles (BRA)
4.03pm: 90kg female: Claire-France Thevenon (FRA) v Gabreili Passanha (BRA)
4.10pm: 94kg male: Adam Wardzinski (POL) v Kaynan Duarte (BRA)
4.17pm: 110kg male: Yahia Mansoor Al Hammadi (UAE) v Joao Rocha (BRA
MATCH INFO
Uefa Champions League, semi-final result:
Liverpool 4-0 Barcelona
Liverpool win 4-3 on aggregate
Champions Legaue final: June 1, Madrid
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
How Filipinos in the UAE invest
A recent survey of 10,000 Filipino expatriates in the UAE found that 82 per cent have plans to invest, primarily in property. This is significantly higher than the 2014 poll showing only two out of 10 Filipinos planned to invest.
Fifty-five percent said they plan to invest in property, according to the poll conducted by the New Perspective Media Group, organiser of the Philippine Property and Investment Exhibition. Acquiring a franchised business or starting up a small business was preferred by 25 per cent and 15 per cent said they will invest in mutual funds. The rest said they are keen to invest in insurance (3 per cent) and gold (2 per cent).
Of the 5,500 respondents who preferred property as their primary investment, 54 per cent said they plan to make the purchase within the next year. Manila was the top location, preferred by 53 per cent.
UAE currency: the story behind the money in your pockets
Company Profile
Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million
World Cricket League Division 2
In Windhoek, Namibia - Top two teams qualify for the World Cup Qualifier in Zimbabwe, which starts on March 4.
UAE fixtures
Thursday February 8, v Kenya; Friday February 9, v Canada; Sunday February 11, v Nepal; Monday February 12, v Oman; Wednesday February 14, v Namibia; Thursday February 15, final
box
COMPANY PROFILE
Company name: Letstango.com
Started: June 2013
Founder: Alex Tchablakian
Based: Dubai
Industry: e-commerce
Initial investment: Dh10 million
Investors: Self-funded
Total customers: 300,000 unique customers every month
Results
5.30pm: Maiden (TB) Dh82,500 (Dirt) 1,600m, Winner: Panadol, Mickael Barzalona (jockey), Salem bin Ghadayer (trainer)
6.05pm: Maiden (TB) Dh82,500 (Turf) 1,400m, Winner: Mayehaab, Adrie de Vries, Fawzi Nass
6.40pm: Handicap (TB) Dh85,000 (D) 1,600m, Winner: Monoski, Mickael Barzalona, Salem bin Ghadayer
7.15pm: Handicap (TB) Dh102,500 (T) 1,800m, Winner: Eastern World, Royston Ffrench, Charlie Appleby
7.50pm: Handicap (TB) Dh92,500 (D) 1,200m, Winner: Madkal, Adrie de Vries, Fawzi Nass
8.25pm: Handicap (TB) Dh92,500 (T) 1,200m, Winner: Taneen, Dane O’Neill, Musabah Al Muhairi
South and West: From a Notebook
Joan Didion
Fourth Estate
What are the influencer academy modules?
- Mastery of audio-visual content creation.
- Cinematography, shots and movement.
- All aspects of post-production.
- Emerging technologies and VFX with AI and CGI.
- Understanding of marketing objectives and audience engagement.
- Tourism industry knowledge.
- Professional ethics.
New UK refugee system
- A new “core protection” for refugees moving from permanent to a more basic, temporary protection
- Shortened leave to remain - refugees will receive 30 months instead of five years
- A longer path to settlement with no indefinite settled status until a refugee has spent 20 years in Britain
- To encourage refugees to integrate the government will encourage them to out of the core protection route wherever possible.
- Under core protection there will be no automatic right to family reunion
- Refugees will have a reduced right to public funds
The%20specs
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The%20Killer
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Abu Dhabi Grand Slam Jiu-Jitsu World Tour Calendar 2018/19
July 29: OTA Gymnasium in Tokyo, Japan
Sep 22-23: LA Convention Centre in Los Angeles, US
Nov 16-18: Carioca Arena Centre in Rio de Janeiro, Brazil
Feb 7-9: Mubadala Arena in Abu Dhabi, UAE
Mar 9-10: Copper Box Arena in London, UK
