The UAE's initial public offering momentum will last for a few more years as the nation pushes forward with policies to encourage foreign investment and economic growth that increase its competitiveness as per the CEO of an Abu Dhabi-based securities broker
According to Ayman Hamed of International Securities, the increase in IPOs has been the primary factor boosting the performance of the equity markets, and the listing of businesses from other industries, such as utilities, logistics, and health care, has also contributed more depth.
“If the spate of IPOs in the UAE continues the way it has … over the past few years, we will see more inflows coming in from foreign and regional institutions, and will also encourage more and more retail participation in the market,” he said.
In comparison to the $7.52 billion raised from 20 offers the year before, the Middle East's IPOs raised more than $23 billion in 2022 from 48 listings.
After Saudi Aramco's $29 billion IPO in 2019, which was the largest public offering in history, that was the greatest share for the Gulf area.
Based on the most recent Global IPO Trends report from consultancy EY, Abu Dhabi accounted for 14% of all listings globally in the first quarter of 2023, demonstrating the strength of its capital markets in the face of a difficult global IPO market.
With Adnoc Gas raising roughly Dh9.1 billion ($2.5 billion) via the sale of a 5% interest, the UAE capital attracted $3 billion in listing proceeds in the first quarter of this year, placing it third globally.