Successful IPOs in UAE further strengthen local stock markets

Inayat-ur-Rahman, Business Editor

The successful Initial Public Offerings (IPOs) in the UAE have helped strengthen local stock markets by attracting more investors and creating deeper liquidity. This has given an impetus for other companies to follow suit which could result in even more IPOs than previously expected.

This was revealed by Abdelhadi Laabi,  Chief Marketing Officer at Emporium Capital, during an exclusive interview with Gulf Today, adding that they  have seen a large number of new listings in the UAE and Saudi Arabia, in particular, this year, and more are expected for 2023.

“IPOs of companies like Salik and Dewa, which are strong companies, have helped bring to the market individual and institutional investors, both locally and internationally, who are looking for opportunities. This could help push those investors to broaden their investment targets to include other companies in the UAE and the region.” Laabi added.

He mentioned that the region was able to withstand the current global economic slowdown and has demonstrated resilience in non-oil sectors as well. High oil prices have brought many benefits and could continue to support the region’s economies if they remain at or above current levels.

“At the same time, large events like Dubai Expo 2020 and the world cup in Qatar among others have highlighted the region’s potential on the global stage. Thanks to strong fundamentals, the region could weather current global hardships and capitalize on future economic recovery.” He added

Highlighting the impact of the world cup on the region, he echoed that the region was able to draw a lot of attention thanks to this exceptional event, which provided more exposure to investment opportunities in the GCC countries and highlighted it as a tourist destination. As a result, we could see more investment inflows directed toward the region from international investors and stronger economic growth over the longer term.

“Stock markets in the GCC have been under pressure as the US and European central banks have been raising interest rates resulting in slower global economic growth. This factor has eroded international investors’ confidence in addition to the effects of the war in Ukraine.”

“At the same time, solid local economic fundamentals and a dynamic IPO scene have helped maintain strong expectations locally. Most markets have also benefited at times from improving oil price expectations.”

At Emporium Capital, we are working on securing our presence in the promising and rapidly growing Middle East region and are working on expanding our share in these markets. ” Laabi concluded.