DFM's Arena Platform: Redefining Capital Access for Small Enterprises

In a bid to facilitate fundraising for family businesses and small enterprises, the Dubai stock exchange unveiled a groundbreaking platform on Wednesday (May 1), providing an alternative route to traditional Initial Public Offerings (IPOs).

Dubbed the Arena platform, companies now have the opportunity to secure capital through a variety of avenues, spanning from equity to debt.

This announcement was made during the Capital Market Summit 2024 held in Dubai, as disclosed by the Dubai Financial Market (DFM).

Moreover, the platform isn't just beneficial for companies.

Venture capital firms stand to expand their investor base significantly by trading private market shares, thus tapping into a previously untapped reservoir of liquidity.

According to statements from the DFM, Arena is geared towards fostering growth opportunities for both companies and investors alike.

Particularly, for companies eyeing capital over 35 million dirhams ($9.53 million), Arena promises a cost-effective channel to access a vast network of investors, coupled with a commitment to transparency throughout the entire process.

The benefits extend to investors, as well. Arena provides exclusive access to DFM's private market investments, offering early-stage growth opportunities that serve to diversify investment portfolios.

Hamed Ali, CEO of the exchange, emphasized that the platform amalgamates the efficiency of direct listing with the DFM's wide-ranging investor base and capabilities.

Ali further highlighted that investors can now seamlessly access investments in the UAE's most promising companies and brands, unlocking opportunities that were previously out of reach.

This move signifies a significant step forward in democratizing investment access and fostering economic growth in the region.

Source: Brinda Darasha / Zawya