The listing of 11 companies on the UAE capital markets this year will raise more than Dh8 billion ($2.18 billion), the deputy chief executive of the Securities and Commodities Authority has said.
Four free-zone entities and two special purpose acquisition companies (SPACS) are in the listing pipeline in 2023, Mohamed Al Hadari said in his address at the Mena IPO Summit on Tuesday.
“While 2021 was a year of recovery, 2022 and 2023 will see significant growth and development in the local markets and IPO markets,” he told delegates in Dubai.
The increase of initial public offerings in the UAE will boost the liquidity of local capital markets, attract more retail investors and improve trading efficiency, he said.
“It will also make the UAE markets even more attractive to foreign investors, who are investing in the future of one of the best-performing economies in the world,” Mr Al Hadari added.
The UAE and the wider GCC region have witnessed a string of IPOs amid strong investor demand as economies rebound at a quicker pace from the coronavirus-induced slowdown and liquidity has been shored up by high oil prices.
Overall, 12 companies in the UAE listed last year, raising $11 billion, in addition to the joint Abu Dhabi-Riyadh listing of Mena food franchisee Americana, which reaped $1.8 billion.
In Abu Dhabi, Borouge, there is the joint venture between Adnoc and Austrian chemicals producer Borealis; Abu Dhabi Ports Group and healthcare provider Burjeel Holdings listed shares on Abu Dhabi Securities Exchange.
Bayanat, a geospatial data products and services provider owned by Abu Dhabi-based artificial intelligence and cloud computing company G42 also listed its shares on the emirate’s bourse in last quarter of 2022.
The momentum of IPO activity in Abu Dhabi last year was an extension of 2021 when the ADX received nine listings including Adnoc Drilling, Fertiglobe, Alpha Dhabi and Yahsat.
The pipeline in the emirate is strong as Abu Dhabi’s Dh5 billion IPO Fund has shortlisted six private sector companies to potentially receive investment and advisory services for listing their shares on the ADX.
It is also in discussion with 30 other companies to list on the capital’s stock market, Mohamed Al Shorafa, chairman of Abu Dhabi Department of Economic Development told The National in November.
Dubai was the centre of regional IPO activity last year as investor confidence grew, buoyed by a strong economic rebound from the pandemic-induced slowdown and high oil prices.
The March listing of Dubai Electricity and Water (Dewa) was the largest GCC IPO in 2022, raising $6.1 billion. The offering size was more than doubled to 8.5 billion shares amid strong investor demand.
State-owned Salik, Empower and Tecom collectively raised $2.2 billion in June, September and November, respectively.
From the private sector, schools operator Taaleem also listed its shares in Dubai, after raising $205 million from its public offering in November.
“The current flurry of activity is more sustainable than previous IPO booms as it is part of a wider, well-defined government strategy to expand and diversify the market,” Mr Al Hadari said.
In November 2021, Dubai announced plans to bolster the size of its capital markets, with intentions to list 10 state-owned companies and boost the size of the emirate's financial market to about Dh3 trillion.
The emirate also announced a Dh2 billion market maker fund to encourage the listing of more private companies from sectors such as energy, logistics and retail.
The IPO pipeline of Dubai’s state-owned companies will continue to mature this year. However, the Dubai Financial Market is more focused on bringing private sector companies to the exchange, Hamed Ali, chief executive of the exchange said.
It is particularly pushing for listing companies from sectors of the emirate’s economy that are “under-represented on the exchange”, he said.
“For us, the private sector is the top priority,” he told delegates on Tuesday.
The market capitalisation of the DFM today presents a “huge opportunity to mimic” GDP of the emirate, which is far more diversified, than the market itself, he said
The exchange is going the extra mile to support companies from those sectors “in their journey to transform, through financial incentives and wavers,” Mr Ali added.
The specs
Price, base / as tested Dh12 million
Engine 8.0-litre quad-turbo, W16
Gearbox seven-speed dual clutch auto
Power 1479 @ 6,700rpm
Torque 1600Nm @ 2,000rpm 0-100kph: 2.6 seconds 0-200kph: 6.1 seconds
Top speed 420 kph (governed)
Fuel economy, combined 35.2L / 100km (est)
What sanctions would be reimposed?
Under ‘snapback’, measures imposed on Iran by the UN Security Council in six resolutions would be restored, including:
- An arms embargo
- A ban on uranium enrichment and reprocessing
- A ban on launches and other activities with ballistic missiles capable of delivering nuclear weapons, as well as ballistic missile technology transfer and technical assistance
- A targeted global asset freeze and travel ban on Iranian individuals and entities
- Authorisation for countries to inspect Iran Air Cargo and Islamic Republic of Iran Shipping Lines cargoes for banned goods
Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
The biog
Birthday: February 22, 1956
Born: Madahha near Chittagong, Bangladesh
Arrived in UAE: 1978
Exercise: At least one hour a day on the Corniche, from 5.30-6am and 7pm to 8pm.
Favourite place in Abu Dhabi? “Everywhere. Wherever you go, you can relax.”
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
SPECS
Engine: 4-litre V8 twin-turbo
Power: 630hp
Torque: 850Nm
Transmission: 8-speed Tiptronic automatic
Price: From Dh599,000
On sale: Now
Poacher
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3ERichie%20Mehta%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%3C%2Fstrong%3E%20Nimisha%20Sajayan%2C%20Roshan%20Mathew%2C%20Dibyendu%20Bhattacharya%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E3%2F5%3C%2Fp%3E%0A
Founders: Abdulmajeed Alsukhan, Turki Bin Zarah and Abdulmohsen Albabtain.
Based: Riyadh
Offices: UAE, Vietnam and Germany
Founded: September, 2020
Number of employees: 70
Sector: FinTech, online payment solutions
Funding to date: $116m in two funding rounds
Investors: Checkout.com, Impact46, Vision Ventures, Wealth Well, Seedra, Khwarizmi, Hala Ventures, Nama Ventures and family offices
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
Global state-owned investor ranking by size
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United States
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China
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UAE
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Japan
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Norway
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Canada
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Singapore
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Australia
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Saudi Arabia
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South Korea
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The alternatives
• Founded in 2014, Telr is a payment aggregator and gateway with an office in Silicon Oasis. It’s e-commerce entry plan costs Dh349 monthly (plus VAT). QR codes direct customers to an online payment page and merchants can generate payments through messaging apps.
• Business Bay’s Pallapay claims 40,000-plus active merchants who can invoice customers and receive payment by card. Fees range from 1.99 per cent plus Dh1 per transaction depending on payment method and location, such as online or via UAE mobile.
• Tap started in May 2013 in Kuwait, allowing Middle East businesses to bill, accept, receive and make payments online “easier, faster and smoother” via goSell and goCollect. It supports more than 10,000 merchants. Monthly fees range from US$65-100, plus card charges of 2.75-3.75 per cent and Dh1.2 per sale.
• 2checkout’s “all-in-one payment gateway and merchant account” accepts payments in 200-plus markets for 2.4-3.9 per cent, plus a Dh1.2-Dh1.8 currency conversion charge. The US provider processes online shop and mobile transactions and has 17,000-plus active digital commerce users.
• PayPal is probably the best-known online goods payment method - usually used for eBay purchases - but can be used to receive funds, providing everyone’s signed up. Costs from 2.9 per cent plus Dh1.2 per transaction.
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Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
