Dubai bourse signs MoU with Shenzhen Stock Exchange

The Dubai Financial Market (DFM) has signed an MoU with the Shenzhen Stock Exchange (SZSE) to lay the foundation for future cooperation and advance cross-border trading and investment opportunities.

Both exchanges will explore cooperation on dual-listing, ETFs, mutual display of indices, and fixed-income products, facilitating more informed and convenient access to secondary market activities.

The partnership between DFM and SZSE will facilitate joint roadshows, research initiatives, and training programs to promote the development of capital markets and cross-border financing for listed firms in both countries.

The deal will act as a catalyst for the exchange of experience and insights in vital areas such as market and product development, regulatory and ESG practices, and IT capacity building.

“This MoU with Shenzhen Stock Exchange is a pivotal step in strengthening our cross-border ties, driving global investment opportunities, and enhancing market accessibility,” said Hamed Ali, the CEO of Dubai Financial Market & Nasdaq Dubai.

“By leveraging our combined strengths, we are reinforcing the ties between our financial ecosystems and paving the way for new avenues of growth and innovation that will benefit investors and stakeholders in both regions.”

Meanwhile, Dubai’s DFM unveiled a new platform earlier in May to help private companies, including family businesses and small companies to raise capital as an alternative to initial public offerings.

ARENA, as the platform is known, is designed to catalyse growth opportunities for both companies and investors. It allows venture capital firms to sell the shares of private companies they own on the new platform.

DFM said initial public offerings on the exchange have raised a record $9.4bn (Dhs34.5bn) since 2021, as privatisations and monetisation initiatives, stock market rallies, and soaring energy prices ensure that investor demand for share sales in the emirate remains high.

Read: DFM unveils initial private offerings platform ARENA