Push comes as markets seek more international investment and better disclosure practices
Companies must have investor relations departments to be eligible for listing on the securities market of the United Arab Emirates, according to a new ruling by the regulator, which is trying to spearhead a campaign to bolster international investment in local markets.
The UAE Securities and Commodities Authority (SCA) has ruled that all listed companies must have at least one person devoted at least part time to ‘handling inquiries from investors and communicating with them,’ according to an SCA press release.
All listed firms must also have a website with ‘all the necessary information about the company and its management’, including a section devoted to investor relations that ‘shall contain all information of interest to investors about the company,’ the regulator rules. The website must keep investors updated on shareholder meetings, regulatory filings and include ‘an agenda highlighting dates of relevant information about the company,’ the regulator says.
The ruling comes as the SCA, founded in 2000, seeks to strengthen the reputation of young local markets and encourage local companies to improve disclosure practices to help draw in further international investment. MSCI and S&P Dow Jones have recently upgraded the UAE to ‘emerging market’ status and the SCA says it will seek ‘advanced market’ status.
An investor relations ‘service has now become vital as the local markets continue to enjoy increasing significance among the various categories of investors at both the national and international levels,’ the regulator says in the press statement. ‘Creating such a department would help improve the level of disclosure in those companies to boost investor relations and meet investors’ ambitions, while, on the other hand, it will serve as a launch pad for preparing the UAE market toward upgrading to advanced market status.’
