Dubai, UAE:

Retail sector companies in the UAE are heading towards listing their shares on the financial markets in order to secure funding for their projects and investments, as part of their plans for expansion, in addition to contributing to the strong growth of the national economy.

The successful listing of several retail sector companies in the UAE financial markets has marked a significant development, which is expected to contribute to further expansion and growth of the sector. It also enhances the regulatory environment for listed companies in the UAE financial markets, boosting their competitiveness.

According to Al-Bayan’s observations, the Dubai Financial Market saw the listing of “Union Coop” shares in the year 2022, becoming the first consumer cooperative in the country to take this step, in line with a Cabinet decision to allow the trading of cooperative shares on the country’s financial markets. The market value of Union Coop’s shares reached approximately AED 4.04 billion.

A number of experts and officials confirmed to Al-Bayan that the success of retail sector companies’ listings on the country’s financial markets paves the way for more listings from the consumer and retail sectors, allowing them to benefit from being present on both the Dubai Financial Market and the Abu Dhabi Securities Exchange. This also contributes to increasing profits and returns for shareholders by boosting sales and revenues, along with the continuous development of services, benefiting the customers.

Experts added that the financial markets offer a good platform for companies to obtain the necessary financing for expansion and growth, either through capital increases or by issuing bonds of various types. For investors, these markets offer a platform for investing in financial instruments issued by economic entities that adhere to transparency and governance standards.

Dr. Suhail Al Bastaki, Chief Community Relations Officer at Union Coop, emphasized that listing on the financial markets is a very important step for companies in the retail sector. He said: “Listing means more transparency, and being in the financial markets makes share trading easier, in addition to what the market represents as an economic force.”

He noted that large companies’ shift towards financial markets strengthens shareholder loyalty, stating that the Dubai Market is a global platform, and the listing process means more security. He added that buying shares is done through the market, as well as the distribution of dividends and profits, which all adds to greater transparency, trust, and security.