Page 204 - AAE PR REPORT - June 2024

5/29/24, 3:51 PM DIFC publishes Regional Outlook for Banking and Capital Markets
Spurred on by the momentum of other, highly anticipated listings, such as Lulu’s
forthcoming IPO, there is now an ever-growing list of demonstrable incentives for other

family businesses to follow suit. A third wave of IPOs is expected through FinTech and

tech-enabled start-up exits, helping to stimulate new industries with high-growth potential,
while creating strong demand from investors and viable exit options for VC investors.

Dubai as a Capital Markets Hub

Through increased IPO activity, banks, investment banks, brokerage firms and law firms
within DIFC’s ecosystem also benefitted significantly from the privatisation of state

enterprises, with fees for MENA deals alone exceeding USD 1.2bn and proceeds from
MENA equity and equity-related deals exceeding USD 13bn in 2023.

The report also highlights how the region’s capital markets are becoming more mature,

driven in Dubai by DIFC’s robust regulatory framework and commitment to innovation.
DIFC is also home to more than 230 investment banks, all of which are stimulating capital

markets.

Deepening of Dubai’s capital markets and market reforms, aligned with best practice have
helped create greater opportunities for investors in different themes of the economy. As

outlined in the report by John Wilkinson, Head of Emerging Markets Equity Capital
Markets and Managing Director, Goldman Sachs, DIFC is driving this growth as an

attractive jurisdiction for incorporation, through its business-friendly approach towards the

rule of law, and how the Centre has grown as a venue for global investors.

A Magnet for Investors

The region is home to a vast range of potential investors. Notably, these include family

businesses, and wealthy individuals who are represented by the influx of wealth of asset
management firms.

According to recent data, the UAE attracted a record-breaking number of High-Net-Worth

Individuals (HNWIs) in 2022, which continued into 2023 and beyond. Currently, there are
an estimated 109,900 resident HNWIs, including 298 centi-millionaires and 20 billionaires,

prompting DIFC’s estimated 370 asset managers to strengthen their presence in the

emirate.

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