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The UAE Cabinet approved a law to allow family-owned businesses to list on the country’s financial markets, according to state media agency WAM.
The UAE’s economy is dominated by family-owned businesses; the passage of this law would allow these companies to start an initial public offering (IPO) and become public joint stock companies.
This law paves the way for the UAE to offer multiple different classes of shares, similar to many developed markets.
A tweet from the official UAE government account said that the law was approved “in the framework of keeping up with economic developments as well as developmental and investment needs in the country.”
The law also aims to encourage UAE nationals to get involved in businesses and investment with the “least possible risk,” WAM reported.