Dubai: UAE corporates listing their green or sustainability-linked on the local capital markets are getting a break – they are exempt from paying any registration fees during 2023.
This was confirmed by the SCA (Securities & Commodities Authority) after a board of directors meeting chaired by Mohamed Ali Al Shorafa.
Green bonds are becoming popular with UAE corporate houses, with Majid Al Futtaim Group being a regular lister of these debt instruments that go into sustainable projects.
“The SCA initiative for green and sustainability-linked bonds and Sukuk is an excellent initiative that aligns perfectly with the broader COP28 agenda with regards to climate finance,” said Dr. Sultan Al Jaber, COP28’s President-Designate, which will be held in the UAE later this year.
“The world as a whole needs to do more to advance sustainability in the financial space that in parallel also helps to contribute to sustainable long term economic growth.”
The registration fee for bonds and sukuk for the purpose of listing is determined by the chairman of the SCA. The technical service fees come at a rate of (0.01 per cent) of the value of the debt issue (subject to a maximum size of Dh30,000).
In February, the SCA issued a directive regarding the regulation of green bonds and sukuks. This allowed public shareholding companies to issue such bonds whose entire subscription proceeds are used to finance or refinance environmentally-friendly projects, such as renewable energy projects.