Page 233 - AAE PR REPORT - June 2024

5/29/24, 3:54 PM Dailyhunt
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 US$71 billion 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 US$315 million and was 130 times oversubscribed, while Saudi Arabia's wider plans to privatise US$55 billion 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 US$210 million 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.

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 US$1.2 billion and proceeds from
MENA equity and equity-related deals exceeding US$13 billion 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.
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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