An improved approach to initial public offerings
(IPO) under the UAE’s new commercial law is
encouraging more companies to go public.
The Federal Commercial Companies Law (CCL), which
came into force on July 1, initially launched to a mixed response. Market
participants were disappointed that the long-awaited statute
did not address foreign direct investment – viewed by
many as the main deterrent to inbound capital flows.
"Some of the drafts we’ve seen over
the past five years suggested easing the statutory restrictions
on ownership as compared to the finalised law, so clients were
a little disappointed in this regard," said Samer Qudah,
partner and regional head of corporate structuring at Al Tamimi.
But there has been an upside. "Those looking to do
an IPO soon were happy with the positive developments
introduced," Qudah added.
The CCL includes many provisions that make it both easier
and more attractive for companies...