Nasdaq Dubai provides secure infrastructure that safeguards all the shares of a private company on behalf of their owners. A robust legal and regulatory framework underpins the CSD.
The shares of private companies are held in the CSD in exactly the same way as those of companies that are listed on Nasdaq Dubai.
Joining the CSD can enhance trust by investors and the public in a private company. It provides credibility as the company pursues its business activities and supports best practice corporate governance. Nasdaq Dubai operates in the internationally recognized legal framework of the Dubai International Financial Centre (DIFC) and its regulator is Dubai Financial Services Authority (DFSA).
By joining the CSD a company can attract publicity through its association with one of the world’s leading exchange brands. An announcement can be made at a market-opening bell-ringing ceremony at Nasdaq Dubai MarketSite attended by company and its guests as well as TV and other media. Nasdaq Dubai can issue a joint press release that is sent internationally.
Nasdaq Dubai has close links with international CSDs including Clearstream and Euroclear. These facilitate cross border share transfers.
Once a company is a member of the CSD, it can prepare for an equity or debt capital markets transaction from a position of familiarity with Nasdaq Dubai. Its investors will also be familiar with the exchange.
The CSD offers companies a range of services in processing corporate actions (any dividends, bonuses, consolidation, etc.) regarding shares held in the CSD.
The CSD supports the easy and efficient transfer of a company’s shares between buyers and sellers, by facilitating share settlement of those transfers.
Any privately held company can apply to join the Nasdaq Dubai CSD, whether it is based in the UAE or overseas. The shareholders can be of any nationality.
Investors can easily buy and sell shares held in the CSD through brokerages that are Members of Nasdaq Dubai, including most of the UAE’s leading brokerages. Such trading takes place off-exchange, with the transfer of ownership of the shares taking place in the CSD itself.
A list of Nasdaq Dubai Members can be found at at our members page. Investors can contact the company in which they hold shares for more information.
Our team will work with the company throughout the process to ensure a smooth transition into the CSD. The process can be fast and is highly streamlined, with applications being reviewed within days of submission.
Complete Nasdaq Dubai’s application forms and submit them to the exchange along with supporting documents, such as Certificate of Incorporation and Memorandum and Artricles of Association. Information requested will include the number and type of shares (e.g. ordinary).
Ensure shareholders have a National Investor Number (NIN) with Nasdaq Dubai and a trading account with one of our Members. A NIN can be obtained through this form or by contacting a Nasdaq Dubai Member.
Once the application is approved Nasdaq Dubai will coordinate with the company on the movement of shares to the CSD, and that is when it becomes a part of Nasdaq Dubai.