Dr. Maryam Al Suwaidi: We aim to provide the necessary protection to stock markets and those investing in the shares of Dubai Airport Free Zone companies and to ensure the soundness of transactions.
Dr. Mohammed Al Zarooni: The agreement emphasizes the Dubai Airport Free Zone’s efforts to create an investment environment attractive to foreign companies and to help them grow their business and protect their investments.
The Securities and Commodities Authority (SCA) entered into a supervisory and regulatory cooperation agreement with the Dubai Airport Free Zone Authority (DAFZA) on the offering and listing of shares of the Dubai Airport Free Zone companies in the UAE.
The agreement was signed on behalf of the SCA by its CEO, Her Excellency Dr. Maryam Buti Al Suwaidi, and on behalf of DAFZA by its director general, His Excellency Mohammed Al Zarooni.
The agreement is part of the efforts of the two parties to enable companies operating in the Dubai Airport Free Zone to offer their shares to the public—in line with the provisions of The SCA Chairman’s Decision No. (11/Chairman) of 2016 Regulating the Issuance and Listing of the Shares of Public Joint Stock Companies and its amendments—and to facilitate their listing on the stock markets licensed by the SCA in accordance with the listing controls adopted by these markets and the provisions of the offering regulations, which specify that for a Dubai Airport Free Zone company to have its shares offered to the public in the UAE, a supervisory cooperation agreement should be made between the SCA and the registrar of these companies, using the form prescribed by the SCA.
Following the signing, Dr. Al Suwaidi pointed out that “the agreement provides for cooperation between the two parties to enhance their supervision and regulation of the initial public offering and listing of shares of Dubai Airport Free Zone companies on the country’s stock markets, thus enabling the parties to exercise their supervisory functions to ensure compliance with the legislation in force in their respective jurisdictions.”
“The agreement aims to provide the necessary protection to the stock markets and those investing in the shares of Dubai Airport Free Zone companies and to ensure sound transactions by promoting mutual cooperation in the fields of supervision and regulation, sharing information, and providing assistance in inspections and investigations according to the provisions of this agreement and within the limits permitted by the legislation governing the operation of the two parties,” she explained.
For his part, Dr. Al Zarooni said, “this agreement is part of the endeavors of the Dubai Airport Free Zone to create an investment environment attractive for foreign companies to help them grow their business and safeguard their investments in a manner consistent with the laws and legislation in force in the country and to open the way for them to capitalize on the opportunities offered by domestic markets, thus increasing their contribution to the GDP and the national economy.”
“This supervisory and regulatory cooperation agreement with the SCA will enhance the efficiency and streamlining of operations. It confirms Dubai Airport Free Zone’s commitment to facilitate the initial public offering of its companies’ shares in the country, thereby enhancing its reputation as one of the most successful and resilient free zones in the country and the region,” he explained.
According to the agreement, the scope of cooperation between the two sides covers the regulation and supervision of an array of operations, including the offering and listing of shares of the Dubai Airport Free Zone companies in the UAE and the relevant disclosure requirements, the enforcement of legislation on the issuance and offering of shares of the Dubai Airport Free Zone companies in the UAE, the enforcement of legislation on the listing of shares of the Dubai Airport Free Zone companies on the UAE stock markets and the ongoing disclosure and governance requirements, and the enforcement of legislation on dealing in securities and the provision of relevant consultation and advice.
The cooperation extends to cover the oversight of the trading and ownership of the Dubai Airport Free Zone listed companies, monitoring these companies, and inspecting their operations, books, or any other records held in their branches and subsidiaries in the free zone and in and outside the country, or with their respective auditors or any other company related to the company subject of the inspection. The parties may seek the assistance, with the inspection team, of one or more experts from the entities with the technical and financial expertise in the subject matter of the inspection to ensure corporate compliance with their applicable legislation and respective bylaws. The inspection team may request the board of directors, the chief executive officer, the managers, or the auditors of the company to provide any data or information as may be deemed necessary.
Under the agreement, the parties also agree to cooperate in preventing and detecting activities associated with money laundering and the financing of terrorism and illegal organizations. They also agree to cooperate in prohibiting and detecting deceit and unauthorized financial activities and any other illegal means and violating activities concerning the offering, listing, or trading of shares of the Dubai Airport Free Zone companies. The parties will also cooperate to enhance and ensure qualification and competence of the licensed persons and to enhance their professionalism to ensure the integrity of transactions and the efficiency of their professional performance. They will also assist in each other in detecting and taking actions against trades made based on insider information and the cases of manipulating the markets and other cases of fraud in securities transactions.