UAE - Mubasher: The Abu Dhabi Securities Exchange (ADX) and the Department of Economic Development (DED) have submitted a proposal to the Securities and Commodities Authority (SCA) to launch the region's first special purpose acquisition company (SPAC) regulatory framework.
The framework aims to enable investors across the world to have access to growth opportunities by facilitating initial public offerings of SPACs and allows sponsors outside of the UAE to apply for listing their SPACs on the ADX, according to a recent press release.
After the SCA reviews the framework, the SPAC proposal will be subject to formal regulatory approval.
The Chairman of Abu Dhabi Department of Economic Development, Mohamed Ali Al Shorafa Al Hammadi, said: "The Emirate has nurtured a pipeline of fast-growing regional companies by providing robust regulations in a stable, low tax and fixed exchange rate environment."
Meanwhile, the CEO of ADX, Saeed Hamad Al Dhaheri, commented: "ADX is now fully prepared to field inquiries from sponsors and investors ahead of the proposal’s expected approval. In the meantime, we will continue to encourage the listing pipeline on the exchange and roll out more innovative investment tools as part of our efforts to enhance liquidity."
