Local businesses in the United Arab Emirates are going to receive a very nice boost if they are delving into the cryptocurrency market. Dubai has been a long time business center of the eastern hemisphere. In regards to real estate and other mercantile businesses, it was inching towards the first place. In order to achieve its goals, the UAE has decided that Initial Coin Offerings (ICO) will be a good option for corporate funding options, making the cryptomarket a lot more responsive to the Arab world.
Corporate fundraising can sometimes be the harders ordeal somebody can take. It takes a lot of documentation and time to get everything in place. However according to the report from Reuters the new rule that will come into action sometime in 2019, will allow ICOs to be a legitimate way of raising funds for the corporation, making it a lot easier and faster for them. It has also been mentioned that even replacements for IPOs could be possible if companies choose to do so.
The first half of 2019 will let us see regulations regarding the rule. It has already been approved by the board of the Emirate Securities and Commodities Authority, that ICOs will be accepted as securities.
Even though the plan may look to be ways off in the future, remember that the first half of 2019 is already in 4 months, therefore making the plan already come into motion. Listing options and trading markets are going to need to be prepared for the new law, because of how popular it may become for some of the foreign businessmen. In most cases all the foreign-based and international business operated firms will most likely opt for the ICO option, therefore draft books are already being prepared.
Equity markets and oil prices have not been very good these few months. The fact that a lot of the economy for the UAE is based on them, has made them rethink their choice of having a fully IPO operated system. As you can see the damage had already been done and it was so severe that the new law had to be introduced. IPOs are not looking to be the wisest choice of the future and may even disappear in the shadow of ICOs.
The UAE will become one of few countries in the world who will have introduced a regulatory system for ICOs on their shores.