The UAE cabinet has approved an amendment to the existing Commercial Agencies Law allowing trading companies to become Public Shareholding Companies. This will allow trading companies to issue IPOs (Initial Public Offerings) and raise funds from the local stock market.
The decision will contribute to the inclusion of more companies in the Capital Market of the UAE and encourages people to venture in business or invest in public shareholding companies. This move will create more investment opportunities in the UAE and the secondary markets will get a boost in the long term.
The UAE Cabinet approved this amendment on the 26th of January 2019, and it aims to ensure “agencies’ competitiveness, sustainability and enhance the economic performance in the national projects sector.”