Dubai International Financial Centre's report, in partnership with LSEG Data & Analytics, outlines three phases of regional IPO growth: state-related privatisations, family-owned company listings, and FinTech startups.
It also highlights increasing investment interest from wealthy individuals and families, particularly in Dubai.
Arif Amiri, CEO of DIFC Authority, highlighted the surge in IPOs and capital market growth in the MENA region due to market reforms and increased investment. Dubai's IPO boom, driven by strategic initiatives and regulatory strength, underscores its role as a capital markets hub. 2024 sees a rebound in IPO activity, with notable privatisations enhancing economic diversification.
The November 2023 listing of Dubai Taxi Co. raised $315 million, highlighting a regional trend towards privatization, exemplified by Saudi Arabia's $55 billion privatization plans by 2025. Family-owned companies, such as Al Ansari Financial Services and Spinney’s, are driving business growth through IPOs, with a third wave expected from FinTech and tech startups.
In 2023, increased IPO activity in DIFC significantly benefited financial and legal firms, generating over $1.2 billion in fees and $13 billion in equity proceeds. Dubai's mature capital markets, bolstered by DIFC's regulatory framework and innovation, attract global investors and foster economic growth.
The region is home to a vast range of potential investors. Notably, these include family businesses, and wealthy individuals who are represented by the influx of wealth of asset management firms.
According to recent data, the UAE attracted a record-breaking number of High-Net-Worth Individuals (HNWIs) in 2022, which continued into 2023 and beyond. Currently, there are an estimated 109,900 resident HNWIs, including 298 centi-millionaires and 20 billionaires, prompting DIFC’s estimated 370 asset managers to strengthen their presence in the emirate.
News Source: Emirates News Agency
