The Emirates Securities and Commodities Authority (SCA) and Dubai's Department of Economic Development (DED) have signed in Dubai a memorandum of understanding (MoU) aimed at boosting and developing the UAE's investment environment, by cooperating in the area of setting-up of public joint stock companies (PJSCs), facilitating procedures for acquiring license by companies seeking to operate in the country's securities industry and coordination of efforts in the areas of training, sharing of experience and studies.
The initiative is within the framework of boosting joint cooperation between the two sides in the interest of the UAE national economy.
H.E. Abdullah Al-Turifi, SCA Chief Executive Officer, signed the MoU for his side and H.E. Sami Dhaen Al-Qemzi, Director General of DED, also signed for his outfit during a ceremony held at the DED premises in Dubai and attended by a number of officials from both sides.
Based on the agreement, the two sides will work to build solid partnership between them by linking the SCA and DED electronically to jointly issue and renew commercial trade license for PJSCs and other companies operating in the securities industry. The agreement also promotes cooperation between the two sides in the area of securities, sharing of information and data related to general assembly meetings in the Emirate of Dubai, provision of data on procedures related to issuance of securities, including shares, Debt Securities and Islamic Bonds (Sukuk). The DED will also have to get the SCA's approval before issuing license to PJSCs and other companies requesting for permit to operate in the country's securities industry, and before taking the necessary steps to stop the commercial activities of those companies, within the confines of the law and based on SCA's request.
Commenting on the agreement, H.E. Abdullah Al-Turifi, said his outfit was committed to signing the agreement based on the supervision and executive responsibilities entrusted to it, including the regulation and licensing of companies operating in the areas of securities and commodities markets in the country, as well as the regulation and supervision of the activities of those companies to boost sound practices among all parties involved in the securities industry.
Al-Turifi pointed out that the agreement between the two institutions was a leading example of partnership between federal and local institutions. He said the agreement aimed at improving further the services being offered in the Emirate of Dubai to completely match with the latest developments in the advanced countries of the world, adding that it also aimed at contributing in achieving better cooperation and coordination between the two signatories of the agreement.
He cited some of the benefits of the agreement as including boosting cooperation to ease and facilitate all the necessary procedures of issuing license to save time and money, improving performance efficiency and maintaining high quality services and all legal, organizational and technical aspects of the issuance of such license.
He noted that the agreement will reflect positively on the license issuance process for companies operating in the area of securities and would boost the attraction of the investment environment of the UAE, in general and investment environment of the Emirate of Dubai, in particular.
For his part, H.E. Sami Al-Qemzi said his outfit shoulders the responsibility of planning and regulating the general economic performance of the Emirate of Dubai, just as it is also responsible for supervising and working to boost Dubai's economic activities to ensure the achievement of the objectives of the Dubai Strategic Plan. "We are very happy to sign this agreement with the Securities and Commodities Authority due to its fundamental role in the establishment and licensing of public joint stock companies and other companies operating in the field of securities. This is in the interest of the national economy," he added.
Cooperation between the two sides, according to the agreement, will include organizing PJSCs records to ensure the recording of accurate and common information about the companies, the DED will also participate in the inspection activities being conducted on the companies based on the SCA's request, the sharing of experience, studies and reports and cooperation in the areas of training and educating of staff to conduct joint transactions.