DFM launches ‘Category B Screen’ as of July 5, 2020
DUBAI: Nasdaq Dubai welcomed the listing on Tuesday of a $300 million sukuk issued by Dubai Islamic Bank ( DIB).
The issuance was a tap on a one billion US dollar sukuk that listed on Nasdaq Dubai on June 16th, 2020. DIB earmarked the funds raised to support its customers and the business community as economies start to overcome challenging market conditions.
DIB is the leading Uae-based sukuk issuer by value on the region’s international exchange with a total of $6.3 billion including the latest 300 million US dollar listing.
Dubai is one of the largest centres for sukuk listings in the world with a total listed value now standing at $71.09 billion. By value 43 per cent of the listings are from UAE issuers and 57 per cent from overseas issuers.
Nasdaq Dubai is the international financial exchange serving the region between Western Europe and East Asia. It welcomes regional as well as global issuers that seek regional and international investment. The exchange currently lists shares, derivatives, Sukuk (Islamic bonds), conventional bonds and Real Estate Investment Trusts ( REITS).
The majority shareholder of Nasdaq Dubai is Dubai Financial Market with a two-thirds stake. Borse Dubai owns one third of the shares. The regulator of Nasdaq Dubai is the Dubai Financial Services Authority (DFSA). Nasdaq Dubai is located in the Dubai International Financial Centre ( DIFC).
Meanwhile the Nasdaq Dubai welcomed the listing of a $ 1.5 billion sukuk issued by Islamic Development Bank ( ISDB) to support COVID-19 relief initiatives. The capital raised will fund medical, social and business projects in many of the bank’s 57 member countries aimed at protecting health and improving lives.
DUBAI: In line with the Securities and Commodities Authority’s (SCA) decision No. (13/ Chairman) of 2020 Concerning Procedures of Dealing with Risk Classified joint stock companies, the Dubai Financial Market ( DFM) announced the launch of the “Category B Screen” as of July 5, 2020.
The new screen consists of listed companies with accumulated losses of 50 per cent and above of its issued capital based on the financial results of 2019 as well as companies suspended from trading for six months and above. It is noteworthy that the launch date of the new screen is in accordance with the SCA’S directions in this regard.
Consequently, the DFM listed companies have been categorized within two categories, Category A consisting of 54 UAE and foreign companies while Category B consisting of 12 UAE and foreign companies, including 4 suspended companies.
Hassan Al Serkal, Chief Operating Officer (COO) and Head of Operations Division of DFM said: “The Resumption of trading on suspended companies’ shares is pending to their adherence to SCA’S requirements including the disclosure of the 2019 audited financial results as well as obtaining SCA’S approval on improvement plans to reform the conditions that led to the suspension. Such requirements are of significant importance so that investors become fully aware of the financial position of each company and risks associated with it and take their investment decisions accordingly.”