Dubai - Arabstoday
The Ministry of Economy is mulling the establishment of another market to list shares of private companies, a ministry circular obtained by Bloomberg News shows. \"The regulations code would be easier than those in the main market, and will guarantee sufficient safeguards for traders in the market through proper disclosure of information and financial data and control of the trading and monitoring,\" the document dated April 30 said. The ministry is seeking feedback from companies on a need for a new trading platform that would be based on \"selective listing\" and whether such listings would help improve credit ratings, according to the circular. The study is in coordination with the Securities and Commodities Authority, the market regulator. \"This is a step in the right direction, as both investors and companies need a safe platform to trade in,\" said Tareq Qaqish, deputy head of asset management at Al Mal Capital. \"We would like to see successful companies in the secondary market IPO and would encourage regulators to focus on companies in sectors that are not represented in the primary market.\" Initial public offerings in the UAE declined last year. Dubai trading volumes tumbled to a six-year low as the DFM General Index lost 17 per cent. Topaz Energy & Marine, an oil and gas services provider, pulled an IPO in London, citing an \"uncertain investment climate for new issues.\" NMC Health, this year listed on the London Stock Exchange.