Page 196 - SALIK PR REPORT AUGUST 2024

In 2021, Dubai established a Dh2 billion market maker fund to provide liquidity and encourage listings
from private companies in sectors such as energy, logistics and retail.

The government aims to expand the size of the emirate's financial market to Dh3 trillion.

Companies including Parkin, Salik, Tecom, Empower, Dubai Taxi Company, Al Ansari Financial Services,
Pure Health, Spinneys, Alef Education, Adnoc Gas and Investcorp Capital have already listed their shares
on the UAE bourses in the past two years.

The attractive dividend policies of these companies and the forward guidance they have provided on
payouts are also a major draw for investors.

In June, Adnoc Drilling announced that its dividends will grow by at least 10 per cent per annum on a
dividend-per-share basis until 2028, providing investors guidance on payouts they will receive in the
future if they choose to invest in the company's stock.

Similarly, Adnoc Logistics & Services said it aims to increase dividends by a minimum of 5 per cent every
year, while Adnoc Distribution's dividend policy for 2024-2028 sets an annual dividend of $700 million or
a minimum of 75 per cent of net profits, whichever is higher.

Saudi Aramco expects $124.3 billion worth of dividends to be declared in 2024.

What’s driving interest in Mena stocks

Joy Dabeet, chief marketing officer at neo-broker amana, says the appetite for Mena stocks has increased
over the past two years driven by a mix of the success of some of the IPO deals, as well as the overall
strong performance of the market and high dividend yields.

Ibrahim Masood, senior vice president of equity portfolio management at Mashreq Capital, agrees, saying
the response to IPOs has been very strong in the UAE and Saudi Arabia in particular.

Most IPOs in the region are structured in a way that the bulk is subscribed to by institutional investors and
a small tranche, generally about 10 per cent, is allocated to retail investors, he says, adding that those
tranches have been heavily oversubscribed in aggregate.

Amer Halawi, head of research at Al Ramz Capital, says money has been pouring into the UAE stock
markets and by extension to GCC markets over the past five years.

The proof is the 80 per cent aggregate rise in the ADX and a 50 per cent rise in the DFM over the past five
years.

“On a blended basis, if you take both and adjust for market capitalisations, this is a 15 per cent annual
return. This is in line with the S&P 500’s exemplary returns,” Mr Halawi says.

“Interest for emerging markets, the oil story and the fact that the region, with Saudi Arabia and the UAE at
the forefront, is working to attract foreign capital are attracting investors."

https://www.msn.com/en-ae/news/other/the-stock-lure-ipos-and-dividend-payouts-are-magnets-
for-yield-hungry-investors-in-gcc/ar-AA1oWt2m?ocid=BingNewsSerp