Middle East

United Arab Emirates Securities and Commodities Authority Approves GCC’s First SPAC Regulatory Framework

The Securities and Instruments Agency (SCA) has approved the regulatory framework of the region’s first special purpose acquisition company (SPAC).

This approval paves the way for the first SPAC to be listed on the Abu Dhabi Stock Exchange (ADX) this year.

This framework was developed by ADX and the Department of Economic Development (DED) in Abu Dhabi in collaboration with SCA and legal and investment experts. Abu Dhabi Government Media Office report.

This gives international investors access to growth opportunities. Regulations also provide for sponsors other than the UAE, giving them the opportunity to apply for approval to list SPACs on the exchange.

UAE SPAC regulations provide an efficient process for publishing a company to sponsors. Sponsors are required to raise at least 100 million dillhams in an initial public offering (IPO), and the units sold consist of warrants that give investors and sponsors the right to convert them into shares. Once the IPO is complete, the SPAC must ensure that 90% of its earnings are credited to a non-interest-bearing account in order to protect the interests of investors.

Last November, ADX and DED submitted a proposal to the SCA to introduce a SPAC regulatory framework.

read: Abu Dhabi Stock Exchange Proposes SPAC Regulatory Framework

Mohammed Ali Al Shorafah al Hamadi, Chairman of the Abu Dhabi Bureau of Economic Development, commented: A strong financial services sector will help attract a wider range of professionals to live, work and invest in the Emirate. “

Hisham Khalid Malak, Chairman of the Abu Dhabi Stock Exchange, said: “SPAC provides investors looking to diversify their portfolio with growth opportunities protected by some of the world’s strongest regulations. We deploy and list the SPAC framework in a timely manner. We are committed to preparing an operational ready exchange to support sponsors with marketing and communication advice. The introduction of SPAC regulations will cover short cells, lending and borrowing securities, market making and listing. By providing investors with the most sought after products and services, such as investment trusts, we complement our efforts to implement our ADX One strategy. “

Streaming company Anghami became the first Arab technology company to be listed on Nasdaq in New York through a SPAC contract in early March last year.

read: MENA music streaming platform Anghami integrated with Vistas Media and listed on Nasdaq New York

https://gulfbusiness.com/uaes-securities-and-commodities-authority-approves-gccs-first-spac-regulatory-framework/ United Arab Emirates Securities and Commodities Authority Approves GCC’s First SPAC Regulatory Framework

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