Page 98 - AAE PR REPORT - August 2024

8/22/24, 1:14 PM The stock lure: IPOs and dividend payouts are magnets for yield-hungry investors in GCC | The National
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."

There’s a realisation among the policymakers that sound, mature capital markets are a

fundamental piece of the puzzle “if you want to grow your economy sustainably”, he adds.

Who is investing?

On the retail side, local and regional investors account for the bulk of investments as the

regional markets are not very easy to access for offshore retail investors, according to Mr

Masood.

This is not unique to the region, it’s quite common across emerging markets, he says.

“It’s mostly regional investors, particularly Arab, Indian, Pakistani and other investors. We

also see foreign investment from Chinese, Russian as well as some British and European

investors,” according to Ms Dabeet.

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