UAE companies’ law piques IPO interest

Author: Lizzie Meager | Published: 20 Oct 2015

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...