The UAE’s capital markets saw a significant boost in the second quarter of 2024, with Initial Public Offerings (IPOs) raising a total of $890 million, according to a recent economic report by PwC Middle East.
The report, titled “IPO+ Watch,” highlights two notable IPOs during the quarter: Alef Education, which raised $515 million on the Abu Dhabi Securities Exchange (ADX), and Spinneys, which raised $375 million on the Dubai Financial Market (DFM). These two IPOs represent some of the largest in the UAE this year.
While the UAE saw strong IPO activity, Saudi Arabia led the way in the GCC region, raising $1.6 billion, or 61 percent of the total IPO activity in the region during Q2 2024. The report notes that Dr. Soliman Abdel Kader Fakeeh Hospital Company raised $763 million on the Tadawul stock exchange in Saudi Arabia. Meanwhile, Kuwait saw its first IPO in two years with Beyout Investment Group Holding Company raising $147 million on the Boursa Kuwait.
According to Muhammad Hassan, Capital Markets leader at PwC Middle East, the first half of 2024 saw some volatility in GCC stock exchange indices and oil prices. However, despite this, the number of new IPOs in the GCC remained strong. He noted that Saudi Arabia continued to dominate the IPO market, with 19 IPOs in the first half of 2024 compared to 17 in the same period last year.
The report further reveals that IPO activity spanned a diverse range of sectors, including Health Industries ($774 million), Consumer Markets ($530 million), Financial Services ($256 million), Energy, Utilities and Resources ($148 million), Industrials, Manufacturing and Automobile ($407 million), and Technology, Media and Telecommunication ($515 million).
The report also highlights a strong appetite for Sharia-compliant financial products, with Sukuk issuances exceeding $10 billion in Q2 2024, compared to $2.6 billion in the same period last year.
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