UAE urges family-owned businesses to list on local bourses
The UAE is encouraging more family-owned businesses to list shares on the country's stock exchanges in a move to enable easier succession in companies and provide more liquidity to local bourses, a top government official said.
"It is encouraged a lot, we've seen family-owned businesses structure themselves to be able to exit partially or fully into IPO [initial public offering]," Ahmad Al Falasi, Minister of State for Entrepreneurship and SMEs, told The National on the sidelines of the Top CEO Forum in Dubai on Thursday.
"Once you list that company, the level of data that goes into the processes makes it easier as well for succession, for inheritances, because you are now being listed, you're reporting and auditing, you're in a shareholder structure that makes it much more friendly for succession as well," he said.
Additionally, listing more family-owned businesses that are "big names" and "big conglomerates" is injecting significant levels of liquidity into UAE's stock markets, Mr Al Falasi said.
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