Based on their desire to create a mechanism for mutual cooperation in the development of a general framework for initial public offerings (IPOs) to increase the number of IPOs, give domestic capital markets greater depth, and promote the financial stability of the national economy, the Securities and Commodities Authority (SCA) signed a memorandum of understanding with the Abu Dhabi IPO Fund (ADIPOF).
The memorandum was signed by H.E. Dr. Maryam Butti Al Suwaidi, CEO of SCA, and H.E. Sameh Al Qubaisi, Director-General of Economic Affairs at the Abu Dhabi Department of Economic Development (ADDED), in the presence of H.E. Mohammed Khalifa Al Hadari, Deputy CEO of SCA, and several ADIPOF officials.
Following the signing, Dr. Al Suwaidi stressed that cooperation between the two sides will shed light on the strong momentum and promising prospects for the IPO sector in the country and pave the way for more IPOs, which will help revive the primary market, increase market depth, and drive sector diversification. She indicated that IPOs are crucial for market growth and reflect how diversified and robust the country’s economy is.
For his part, Al Qubaisi said: “signing this agreement is part of our ongoing efforts to develop the economic landscape together with regulators and to stimulate and empower the private sector, which is a key impetus to the economy and capital markets and an important factor for big companies and startups eyeing the next phase of growth. A specialized team of experts at the ADDED is working to provide support to eligible companies and enhance their potential to reach the IPO stage. Given its strategic and financial mandate, the ADIPOF will help drive growth in different sectors, contribute to economic diversification, and deepen the partnership between the private and public sectors.”
The ADIPOF was established by the Abu Dhabi government, which appointed the ADDED as its manager to enable private businesses to accelerate growth by facilitating IPOs in the Abu Dhabi Securities Exchange, among other things.