Abu Dhabi (Al-Ittihad) under the directives Supreme Council for Financial and Economic Affairs, Release His Highness Sheikh Khalid bin Mohammed bin Zayed Al Nahyan, Member of the Executive Council of the Emirate of Abu Dhabi, Head of the Abu Dhabi Executive Office, Member of the Board of Directors of the Supreme Council for Financial and Economic AffairsAbu Dhabi Fund for Subscriptions, as part of efforts to enhance the leading position of the Abu Dhabi Securities Exchange.
According to the Abu Dhabi Government Media Office, the initial value of the Abu Dhabi Fund for Subscriptions is 5 billion dirhams, and it operates under the supervision of the Supreme Council for Financial and Economic Affairs, and is managed by the Department of Economic Development – Abu Dhabi. The fund seeks to invest in 5 to 10 companies from the private sector annually, with a focus on small and medium companies, by targeting between 10 to 40% of the total shares available for subscription, thus helping them grow by providing the necessary liquidity through the public offering.
On this occasion, His Highness Sheikh Khalid bin Mohamed bin Zayed Al Nahyan stressed the importance of the Fund in strengthening Abu Dhabi’s position as a leading destination that provides an environment conducive to investment. His Highness praised concerted efforts to support the private sector to contribute more to achieving sustainable economic growth in Abu Dhabi.
The Abu Dhabi Subscription Fund works closely with various local banks to benefit from their expertise in the process of listing companies, and seeks to encourage private sector investors to enhance the companies’ listing on the Abu Dhabi Securities Exchange. The fund and private investors keep the shares after subscription for a specified period of time.
His Excellency Mohammed Ali Al Shurafa Al Hammadi, Chairman of the Department of Economic Development and Chairman of the Abu Dhabi Securities Exchange Board of Directors, said: “The Abu Dhabi IPO Fund contributes to enhancing the attractiveness of the investment environment in Abu Dhabi and motivating more private sector companies, including small and medium companies, to list on the Abu Dhabi Securities Exchange. By providing liquidity and enhancing investor confidence in the initial public offering system, thus encouraging the private sector to invest.”
His Excellency added: “This fund also works to encourage the transition from reliance on debt financing to the optimal use of other available financing tools. As part of efforts to deepen the capital markets and encourage a culture of investment in the national economy, the fund contributes to enhancing the leading position of the Abu Dhabi Securities Exchange in the region.”