UAE and Saudi Arabia to lead 2023 MENA IPO market: EFG Hermes

UAE and Saudi Arabia dominate MENA IPO plans in 2023

The UAE and Saudi Arabia will lead IPO markets in the MENA region, according to EFG Hermes analysts.

Karim Awad, Group CEO of EFG Hermes Holding, said: “’The IPO markets in MENA have seen strong momentum last year led by GCC countries, especially UAE and Saudi Arabia”.

The comments came on the sidelines of the 17th EFG Hermes One-on-One Conference in Dubai on Monday.

UAE and Saudi IPO plans

He said that his group is working on five diverse sectoral IPOs in the GCC market which will be launched between the second and fourth quarters of the year.

Headlined “Outplaying Challenges,” the conference hosted thousands of one-on-one meetings between executives representing some of the region’s most compelling prospects and regional and global institutional investors, allowing them to gain insights into key trends impacting frontier and emerging markets today to explore value-accretive investment prospects.

This year’s conference, which runs until March 9, will witness 179 companies in numerous key sectors across 29 countries hold direct meetings with more than 560 institutional investors and fund managers representing 247 international institutions.

Awad said: “The conference continues to act as a growth catalyst for capital market investment across FEM, opening direct communication channels between investors and the most promising listed companies.

“This year, the UAE is also preparing to host COP 28, making it an optimal time for companies to inform the conversation on how investors can play a role in the journey toward net-zero by weaving responsible investment practices and frameworks into their financial considerations to secure a better future that guarantees sustainable development for societies, economies, and the planet.”

“2022 was rife with macroeconomic volatility due to persistently high inflation rates, a challenging interest environment driven by Fed-supersised rate hikes, and soaring commodity prices caused by the Russia-Ukraine crisis that dampened global capital market activity and investor sentiment.

“Meanwhile, the first quarter of 2023 saw a slight reversal, with a slowdown in commodity price jumps as alternative supplies came on stream and China’s reversal of economically stifling zero-COVID policies spurring investors to pour into emerging market securities at a near-record rate.

“The GCC in particular has demonstrated resilience against global turbulence, driven by a solid crude oil market and government initiatives that have collectively deepened the region’s capital markets,” he noted.

Mohamed Ebeid, Co-CEO of the Investment Bank at EFG Hermes Holding, said: “Since the start of the year, the MSCI EM equities index has been trading at 20 percent or more above last year’s low as emerging economies look set to grow faster than advanced ones this year, with EM GDPs expected to expand by 1.4 percentage points more than the rate in advanced economies.

“The GCC has, in recent months, proven to be a key investment hub for regional and global investors — a transformation we’ve been incredibly successful in capitalising on by capturing a large share of ECM and M&A deals, particularly in the UAE.

“As we look ahead, we are confident we can continue ramping up our equity, debt, and M&A transaction pipeline and unlock unmatched prospects for clients and investors alike.”