The Dubai Financial Market is the Emirate’s stock exchange and it was first established in 2000. The Dubai Financial Market is a public institution and it has its own governing body. The Dubai Stock Exchange is a secondary market and is used by public joint-stock companies trading securities and bonds issued by the UAE Government. Local and foreign investment funds are also allowed to trade on the Dubai Stock Exchange provided that they comply with its regulations. In 2005, the Dubai Financial Market became a public joint stock company and started trading its shares in 2007.
There are several laws governing the Dubai Financial Market, among which:
The Law on the Emirates Securities and Commodities Authority and Market establishes the regulations authorized brokers can trade on the Dubai Financial Market. In order to trade on the Dubai Stock Exchange foreign companies must first apply for a license with the Emirates Securities and Commodities Authority (ESCA). The company must be a public joint-stock company and have a minimum share capital of 40 million AED and at least 100 shareholders. The company must also appoint an UAE representative who will handle the registration of the shares.
For information about registration fees with the Financial Market you can refer to our lawyers in Dubai.
In order to become a broker in Dubai, one must register with the Register of Brokers. Companies trading on the Dubai Stock Exchange must fulfill the following conditions:
The Dubai company must appoint the following officers:
The company will also be required to comply with other requirements issued by the Register.
For complete information about the required documents for becoming a broker, please contact our law firm in Dubai.
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