Page 211 - AAE PR REPORT - June 2024

5/29/24, 3:53 PM DIFC publishes Regional Outlook for Banking and Capital Markets – Bizpreneur Middle East
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.
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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