Page 17 - LOGIC CONSULTING PR REPORT SEPTEMBER 2024

and growing appeal of the UAE's IPO market, including its strengthened position in global capital
markets with the presence of two main stock exchanges: ADX and DFM.

The total market capitalisation has reached Dh2.84 trillion, with DFM's market capitalisation
increasing by 18 percent to Dh688 billion in 2023, reflecting robust market activity and investor
confidence.

According to the report, 63,000 new investors joined in 2023, 47 percent of whom are foreign.

ADX has seen the registration of over 19,000 institutional investors, with almost 43 percent coming
from overseas.

Capital raised through IPOs amounted to Dh1.97 billion in 2023, demonstrating the market's
effectiveness in mobilising capital across various sectors.

ADX alone raised over $5.6 billion in IPO proceeds, accounting for 56.3 percent of the region's total.

Trading values on the UAE exchanges reached $1.4 billion in 2023, marking a 160 percent increase
from the previous year.

ADX now features 97 listed companies and 13 ETFs, establishing itself as the most active ETF
market in the MENA region.

The report stated that the second quarter (Q2) of 2024 saw a strong surge in IPO activity in the UAE,
with two listings accounting for 33.8 percent of total IPO proceeds in the MENA region.

Notably, Alef Education's IPO was the second largest in the MENA region for Q2 2024, raising $515
million and representing 19.5 percent of total IPO proceeds.

Initiatives by the UAE government are playing a pivotal role in stimulating IPO activity and
strengthening market infrastructure, the report said.

The Abu Dhabi government has launched the Abu Dhabi IPO Fund (ADIPOF) to support local and
regional companies seeking to list on the Abu Dhabi Securities Exchange (ADX).

This fund provides financial assistance and guidance throughout the IPO process, fostering a
supportive environment for new listings.

The Abu Dhabi Securities Exchange has implemented several initiatives to promote IPOs and
enhance market transparency.

These measures include adopting best practices in corporate governance, offering educational
resources for investors, and introducing reduced listing fees and a simplified application process.

https://en.aletihad.ae/news/business/4514343/uae-a-fertile-ground-for-ipos