Equity leaders see surge in Gulf IPOs
Dubai, October 21, 2013
Whilst the regional and international equity markets have generally been depressed post global financial crisis, early signs of recovery are appearing with higher volumes being traded on some of the regional exchanges, and more interest from foreign investors, said a survey.
On the other side, the GCC economies are showing positive signs of recovery across a multitude of sectors, including retail, tourism, real estate and infrastructure, according to Deloitte Middle East’s first equity capital markets confidence survey titled, "From a trot to a canter?"
The survey, which was conducted through meetings with 30 equity capital market practitioners within regional and international banks operating in the GCC, covering the Mena region, covers topics such as the macro-economic environment, valuations, the IPO process and regulations amongst other themes.
Tthe Tadawul (Saudi Stock Exchange), the Dubai Financial Market (DFM) and the Qatar Exchange (QE) are expected to be the most active GCC exchanges over the next 12 months, and there is a strong pipeline of issuers looking to launch IPOs regionally as well as on international stock exchanges, the survey stated.
'The successful listing of NMC Healthcare and Al Noor Medical on the London Stock Exchange demonstrates the attractiveness of the Mena region to international investors, providing an alternative for regional issuers outside of the GCC exchanges," observed Adnan Fazli, equity capital markets leader at Deloitte Corporate Finance in the Mena region.
"It will certainly be interesting to see how the GCC markets will respond to attract regional issuers and foreign investors to regional exchanges," he added.
According to him, the sectors expected to drive growth in the GCC include infrastructure, retail, oil and gas, and manufacturing and are likely to attract potential issuers in the foreseeable future.
The increases in trading volumes are driven in large part by foreign investors seeking a safe haven from socio-political turmoil in the wider Middle East region, which is positively affecting real estate and stock values in GCC countries, especially the UAE, stated the Deloitte report.-TradeArabia News Service