Saudi Arabia has 23 companies waiting to list on the country’s stock exchange, the chairman of the Capital Market Authority said on Sunday.
The companies “are essentially on the runway waiting for the appropriate time, and obviously market conditions”, said Mohammed ElKuwaiz, during the Saudi Capital Market Forum.
The Saudi market regulator is currently “reviewing” 77 applications for an initial public offering (IPO), and there are 70 signed mandates with financial intermediaries and advisers in the early part of the process, Mr ElKuwaiz said.
“If you look at this, in tandem, it gives us an indication that we have a very healthy pipeline. Obviously, all of this is contingent on market forces and economic forces as well.”
Last year was a “record” year for Saudi Arabia’s capital markets, with companies raising about 40 billion Saudi riyals ($10.66 billion) from IPOs, Mr ElKuwaiz said.
The amount is the highest raised by the market in any single year, excluding 2019, when Saudi Aramco raised more than $29 billion in a record-setting IPO, he added.
Unlike global markets that have had subdued investor sentiment amid soaring inflation and recession fears, the GCC region enjoyed strong IPO activity in 2022.
The total number of IPOs issued in the region jumped to 48 in 2022 from 20 in 2021, Kamco Invest said.
Saudi Arabia, the Arab world's largest economy, maintained its leadership position for IPO issuances from the region in 2022, as 34 out of the 48 GCC IPOs debuted on either the Tadawul or the Nomu, it said.
Meanwhile, proceeds for 2022 from GCC issuers went up by 3.1 times to $23.38 billion, from $7.52 billion in 2021, data from Bloomberg and stock exchanges showed.
Restaurant-operator Americana, which raised $1.8 billion from its listing last year, was the first company to be dually listed in the kingdom and the UAE.
The CMA is “likely” to create a regulatory framework for dual listings following Americana, which was a pilot, said Mr ElKuwaiz.
“We are continuing to entertain additional pilots and we are seeing a lot of interest.”
The CMA has, for the first time, started to actually reject files that do not meet disclosure and governance standards
Mohammed ElKuwaiz,
chairman of the Capital Market Authority
Looking ahead, the market for IPOs in the GCC looks strong, with between 27 and 39 companies expected to float their shares in the region this year, Kamco Invest said.
However, with growing interest for listings, the CMA is also issuing a “large number of rejections”, Mr ElKuwaiz said.
“The CMA has, for the first time, started to actually reject files that do not meet disclosure and governance standards,” he said.
“Our expectation is that this rejection trend is likely to continue [and] possibly even increase as the number of files may not necessarily be ready to fulfil disclosure and governance standards going forward.”
Foreign participation in the kingdom’s markets is also rising, with international investors representing 15 per cent of the free float — shares that can be publicly traded, said Mr ElKuwaiz.
“We're continuing to see a rapid increase in the proportion of foreign investors, both in terms of the percentage of ownership as well as the percentage of trading and velocity,” he said.
“IPO activity is actually a main driver for foreign interest and foreign investment activity.”
At a separate session on Sunday, Nasdaq chief executive Adena Friedman also noted that the IPO environment is “vibrant in Saudi Arabia”.
“This region is one of the fast-growing in the world. Saudi has done a tremendous job of bringing capabilities into the market so they can compete with global mature markets. It’s a testament to the amount of focus, energy and leadership in the country,” she said.
Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
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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."
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
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Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
UAE currency: the story behind the money in your pockets
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Notable Yas events in 2017/18
October 13-14 KartZone (complimentary trials)
December 14-16 The Gulf 12 Hours Endurance race
March 5 Yas Marina Circuit Karting Enduro event
March 8-9 UAE Rotax Max Challenge
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
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Tips on buying property during a pandemic
Islay Robinson, group chief executive of mortgage broker Enness Global, offers his advice on buying property in today's market.
While many have been quick to call a market collapse, this simply isn’t what we’re seeing on the ground. Many pockets of the global property market, including London and the UAE, continue to be compelling locations to invest in real estate.
While an air of uncertainty remains, the outlook is far better than anyone could have predicted. However, it is still important to consider the wider threat posed by Covid-19 when buying bricks and mortar.
Anything with outside space, gardens and private entrances is a must and these property features will see your investment keep its value should the pandemic drag on. In contrast, flats and particularly high-rise developments are falling in popularity and investors should avoid them at all costs.
Attractive investment property can be hard to find amid strong demand and heightened buyer activity. When you do find one, be prepared to move hard and fast to secure it. If you have your finances in order, this shouldn’t be an issue.
Lenders continue to lend and rates remain at an all-time low, so utilise this. There is no point in tying up cash when you can keep this liquidity to maximise other opportunities.
Keep your head and, as always when investing, take the long-term view. External factors such as coronavirus or Brexit will present challenges in the short-term, but the long-term outlook remains strong.
Finally, keep an eye on your currency. Whenever currency fluctuations favour foreign buyers, you can bet that demand will increase, as they act to secure what is essentially a discounted property.
More on animal trafficking
Company profile
Date started: January, 2014
Founders: Mike Dawson, Varuna Singh, and Benita Rowe
Based: Dubai
Sector: Education technology
Size: Five employees
Investment: $100,000 from the ExpoLive Innovation Grant programme in 2018 and an initial $30,000 pre-seed investment from the Turn8 Accelerator in 2014. Most of the projects are government funded.
Partners/incubators: Turn8 Accelerator; In5 Innovation Centre; Expo Live Innovation Impact Grant Programme; Dubai Future Accelerators; FHI 360; VSO and Consult and Coach for a Cause (C3)
