Ahmed Hatem / Anatolia
Hermes (private) financial group said initial public offering volume in the Gulf region amounted to $21 billion this year, representing 23 percent of the total global signings of $91 billion.
Hermes, which is listed on the Egyptian Stock Exchange, said in a report on Monday that the increase in subscription volume is a result from 2021 numbers, when subscriptions amounted to just 2 percent, or $10 billion, of the total. global.
The report indicated that the conflict between Russia and Ukraine has sparked exceptional interest among investors in the Gulf region, especially investors who focus on emerging markets.
The memo indicated that the real change has occurred in the UAE, where 12 companies entered the market in 2022, raising $11 billion.
The Dubai financial market saw the listing of Dubai Electricity and Water Company (DEWA) in March in the largest initial public offering in the Gulf states this year, raising $6.1 billion at an ideal time when the global investor interest was rapidly shifting from Russia to the countries of the region.
DEWA is now the largest by market capitalization on the Dubai Stock Exchange.
“Local investors in the region face a trade-off, either they stay invested in IPOs and the broader market or they take some money off the table and put it into bank deposits,” the report continued.
The four largest Gulf countries – the UAE, Saudi Arabia, Kuwait and Qatar – make up more than 7% of the MSCI Emerging Markets Index total.
At the same time, volatility in global financial markets reduced IPO activity outside the region, and Gulf companies were able to sell shares at high valuations, according to the report.
Hermes expected the 2023 initial public offering to be very strong, amid governments and private companies eager to sell shares.
Middle Eastern economies, which depend on energy exports, especially the Gulf states, have flourished amid rising global demand for oil and gas and a recovery in global prices.
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