Page 189 - AAE PR REPORT - June 2024

5/30/24, 8:43 AM Dubai’s IPO boom positions city as thriving hub for capital markets: Report
contributing to economic diversification, private sector development, and enhanced
sovereign liquidity. Notably, Dubai has successfully taken six out of the 10
government entities public, including the record-setting Parkin IPO, which saw an
oversubscription of 165 times with $71 billion in orders. In November 2023,

Dubai’s Roads and Transport Authority (RTA) also listed its Dubai Taxi Co. IPO,
which raised $315 million and saw an oversubscription of 130 times.
Meanwhile, Saudi Arabia aims to privatize $55 billion in assets by 2025. This

reinforces the increasing regional trend towards privatization.
Phase 2: Listings by family-owned companies
The second phase of regional IPO growth focuses on family-owned companies going
public. This trend is evident with successful IPOs such as:

Al Ansari Financial Services IPO, which raised $210 million in 2023.
Spinney’s 1961 Holding PLC IPO, which was listed on the Dubai Financial
Market (DFM) in April 2024.
Due to the momentum these listings saw, other family businesses are following suit,

like Lulu’s forthcoming IPO.
“Dubai’s IPO boom underscores the city’s status as a thriving hub for capital markets,
and DIFC’s role in enabling this acceleration through the firms that drive capital

markets and provide advisory services for IPOs will continue to contribute to the
dynamic evolution of global finance,” stated Arif Amiri, CEO of DIFC Authority.
Phase 3: Fintech and tech-enabled start-ups
The final phase of regional IPO growth anticipates a surge in IPOs from fintech and

tech-enabled start-ups. Markets expect this wave to stimulate high-growth industries,
create strong investor demand, and provide viable exit options for venture capital
investors.
DIFC’s ecosystem grows

The increase in IPO activity and privatization efforts in Dubai and the region has
benefitted banks, investment banks, brokerage firms, and law firms in DIFC’s
ecosystem. Hence, fees for MENA deals alone exceeded $1.2 billion. Meanwhile,

proceeds from MENA equity and equity-related deals exceeded $13 billion in 2023.
The report also highlights how the MENA region’s capital markets are becoming
more mature due to DIFC’s robust regulatory framework and commitment to
innovation in Dubai. DIFC is also home to more than 230 investment banks, all of

which are stimulating capital markets.
“Capital markets across the MENA region have experienced remarkable expansion,
driven by reforms aimed at enhancing market infrastructure and fostering greater

foreign and regional investment inflows,” added Amiri.
Read: Alef Education to list 20 percent shares on Abu Dhabi stock market
UAE attracts high-net-worth individuals

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