UAE to Allow Companies Raise Funds Through ICOs

In 2019, The United Arab Emirates (UAE) is expected to come up with a new regulatory framework that would allow local businesses to launch initial public offerings (ICOs) as a means of fundraising, Reuters reports. ICOs could pose as a viable solution for dwindling IPO activity in UAE that was caused by falling oil prices and weak equity market.

The news comes from Obaid Al Zaabi, CEO of the Securities and Commodities Authority (SCA) of UAE. During a recent seminar, he states that ICOs will be recognized as securities, and respective regulations will be introduced not later than in the first half of 2019. The country’s securities watchdog is currently working with foreign advisers and stock markets that are based in Abu Dhabi and Dubai.