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UAE, Saudi Arabia to lead IPO Mena market in 2023, report says


According to EFG Hermes Holding, a leading investment bank in Frontier Emerging Markets (FEM), the initial public offering (IPO) market in the Middle East and North Africa will witness strong momentum in 2022 led by the GCC countries, especially the UAE and Saudi Arabia.

In a year of macroeconomic volatility as persistently high inflation, a challenging interest rate environment due to Fed rate hikes, and a surge in commodity prices due to the Russia-Ukraine crisis dampened global capital market activity and investor sentiment, EFG Hermes in its Reporting.

“We expect the UAE and Saudi Arabia to lead the region’s IPO market this year,” said Karim Awad, CEO of EFG Hermes Holding Group, during the 17th EFG Hermes One-on-One Meeting in Dubai, which kicked off today (March 6) .

Awad revealed that his team is working on five initial public offerings in different industries in the Gulf market, which will be launched between the second quarter and the fourth quarter of this year.

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

However, there is a slight reversal in the first quarter of 2023, with commodity price gains slowing as alternative supplies emerge and China’s reversal of its economically strangling zero-Covid policy spurs investors into emerging market securities at a near-record pace, ” he explained.

The event, which runs until March 9, will see 179 companies across a wide range of key industries in 29 countries hold direct meetings with more than 561 institutional investors and fund managers representing 247 international institutions.

Senior government officials, high-profile regional business leaders, investors and listed companies were all in attendance.

Themed ‘Beat the Challenge’, the EFG Hermes conference featured thousands of one-on-one sessions between executives representing some of the region’s most attractive prospects and regional and global institutional investors, allowing them to gain insight into the impact Key trends in today’s frontier and emerging markets explore value-added investment prospects.

“The conference continues to serve as a growth catalyst for FEM capital market investments, opening direct lines of communication between investors and the most promising listed companies,” commented Awad.

“With decades of on-the-ground expertise in these markets, we provide investors with the tools, unique insights and unfettered access they need to maximize returns—maintaining our legacy as the financial enabler of business success.” position,” he added.

Mohamed Ebeid, co-chief executive of investment bank EFG Hermes Holding, said MSCI’s index of emerging market stocks has been trading 20% ​​or more above last year’s lows since the start of the year as emerging economies appear to be growing faster than Advanced Economies Emerging market GDP is expected to be 1.4 percentage points higher than advanced economies this year.

“The GCC has proven to be an important investment hub for regional and global investors in recent months – we have been incredible at capitalizing on this transition by securing a significant number of ECM and M&A deals, particularly in the UAE success,” Ebede said.

He added: “Looking ahead, we are confident that we can continue to expand our pipeline of equity, debt and M&A transactions and unlock unparalleled prospects for our clients and investors.”-TradeArabia News Service


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