The Dubai Financial Market is venturing into private capital markets with the launch of Arena, a platform that enables family businesses and SMEs to access a range of asset classes, including debt and equity, the exchange said in a press release (pdf). The technology used in the platform has been provided by Nasdaq, Bloomberg reports. The platform is tailored to help small businesses raise capital ahead of — or instead of — an IPO.

More on the platform: The minimum capital-raising requirement is AED 35 mn, according to the statement. Private companies raising capital via Arena can also limit who can access their shares to institutional investors, employees-only, or family and founding members, according to the statement.

Venture capital firms will also be able to sell private market shares on the platform, “thus establishing a previously unavailable liquidity pool,” the statement says. Investors will also have access to the exchange’s private market investments where they can directly invest in early-stage growth prospects, the statement reads.

What they said: “Arena is designed to facilitate seamless processes, including due diligence, book building, brokered trades, and settlement, fundamentally reshaping the landscape of investment accessibility and efficiency,” DFM CEO Hamed Ali said.

REMEMBER- The DFM drew in AED 35 bn from eight new listings in 2023, CEO Hamed Ali tells CNBC Arabia. The market’s focus is on providing incentives to the private sector, especially in sectors like education and healthcare, to make it easier for these companies to list on the market, he added. Ali also mentioned continuous efforts to assist startups before their IPOs.

Background: 2023 saw the UAE’s biggest IPO to date in March, when Adnoc Gas raised AED 9.1 bn in its market debut. Big IPOs during the year also include healthcare firm PureHealth, which raised AED 3.62 bn, and state-owned Dubai Taxi, which raised AED 1.16 bn.

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