Page 185 - SALIK PR REPORT ENGLISH AUGUST 2024

8/22/24, 10:08 AM The stock lure: IPOs and dividend payouts are magnets for yield-hungry investors in GCC | The National
The robust momentum of the initial public offerings, attractive valuations as well as the

visibility on healthy dividend payouts from listed companies are among some of the

reasons that have helped in expanding the investor base in the Arab world's second-largest

economy.

The DFM, home to the largest capitalised property developer Emaar Properties and

Dubai's biggest bank Emirates NBD, attracted 72,583 new investors in the first six months

of 2024. Trading activity rose significantly along with trade values of stocks on the bourse

amid continued economic momentum in the emirate.

The Abu Dhabi Securities Exchange, the second-largest Arab stock market by market

value, welcomed 50,000 new investors last year. Trading volume climbed 37 per cent
year-on-year while the foreign ownership of ADX-listed companies rose by 35 per cent on

an annual basis, according to the latest ADX data.

The continuing momentum of listings in the UAE perhaps is the biggest lure for investors

in recent quarters. Companies raised $890 million through IPOs in the second quarter of

this year alone, according to PwC's quarterly IPO Watch report.

Bourses in the other states of the six-member bloc of GCC have seen a similar rise in

listing activity as well as stronger investor interest.

Saudi Arabia's Tadawul, the biggest Arab bourse, which is home to companies like the

world's top oil producer Saudi Aramco and financial institutions including Saudi National

Bank and Al Rajhi Bank, led in the volume of IPO deals in the second quarter. Companies

in the kingdom raised an aggregate of $1.6 billion, or 61 per cent of the total IPO activity

recorded, during the period, according to the PwC report.

https://www.thenationalnews.com/business/money/2024/08/20/the-stock-lure-ipos-and-dividend-payouts-are-magnets-for-yield-hungry-investors-in-gcc/ 2/11