Page 203 - AAE PR REPORT - June 2024

5/29/24, 3:51 PM DIFC publishes Regional Outlook for Banking and Capital Markets
Commenting on the report’s findings, Arif Amiri, Chief Executive Officer, DIFC Authority,
said: “Driven by the surge in IPOs, 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. With its
strategic initiatives and robust regulatory framework, DIFC plays a pivotal role in driving

innovation and stimulating growth within the financial sector. 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.”

Multifactor IPO Growth

Following two years of moderate IPO activity, 2024 shows signs of a rebound supported
by the postponement of several 2023 deals in anticipation of more favourable market

conditions. Based on data published by EY, 51 IPOs took place in 2022, raising USD 22bn,
including a mix of both family businesses and the public sector.

The privatisation of state-related entities is leading to greater economic diversification,

private sector development and sovereign liquidity creation. As of March 2024, Dubai had
followed through on six out of the ten government entities it plans to take public, including

Parkin, which was 165 times covered and attracted USD 71bn in orders – a new record for

the emirate.

Another recent example includes the November 2023 listing of Dubai Taxi Co., a unit of

Dubai’s Roads and Transport Authority (RTA), which raised USD 315mn and was 130

times oversubscribed, while Saudi Arabia’s wider plans to privatise USD 55bn in assets by
2025 reinforce the increasing regional trend towards privatisation.

From the private sector, the listing of family-owned companies is helping to drive business
growth, succession planning and enhanced governance and transparency. For example,

Al Ansari Financial Services, one of the UAE’s largest remittance and foreign currency

exchange companies, owned by a local family group raised USD 210mn from its 2023
IPO, while Spinney’s (Spinneys 1961 Holding PLC), which was incorporated in DIFC to list

its shares on DFM, thereby benefiting from its extensive laws, regulations, and stability,
listed in April 2024.

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