The GCC has dominated global initial public offerings in 2022, raising about 23 per cent ($21 billion) of the $91 billion raised in all IPOs worldwide this year.
This is a remarkable feat when you consider that in 2021, the region accounted for only 2 per cent ($10 billion) of the global IPO flow.
But what has led to this point?
The Russia-Ukraine conflict provoked extraordinary investor interest in the GCC region, particularly emerging market-focused investors, for whom the GCC countries collectively represent the largest potential exposure to high oil prices.
Today, the four major GCC countries — Kuwait, Qatar, Saudi Arabia and the UAE — constitute more than 7 per cent of the total MSCI Emerging Markets Index.
At the same time, volatility in global financial markets has squeezed IPO activity outside the region and GCC companies have been able to sell equity at high valuations.
The real step change came in the UAE: 12 companies came to the market in 2022, raising $11 billion in addition to the joint Abu Dhabi-Riyadh listing of Mena food franchisee Americana, which raised $1.8 billion in late 2022.
Dubai has been particularly active in 2022, after many years of virtually no activity. The March listing of the Dubai Electricity and Water (Dewa) was the largest GCC IPO this year, raising $6.1 billion at a perfect time when global investor attention was rapidly shifting from Russia to the GCC.
The offering size was more than doubled; 8.5 billion shares were sold at Dh2.48 each, up from an initial 3.25 billion shares. Dewa is now the largest by market capitalisation on the Dubai exchange.
Investors have been attracted to Dewa due to steady cash flow and potential for dividend generation, and they saw similar strengths in other major Dubai listings in 2022, when Salik, Empower and Tecom collectively raised $2.2 billion in June, September and November, respectively.
All four were government-owned but some important consumer-focused companies with a private-sector affiliation were listed in 2022.
Last month, educational company Taaleem listed in Dubai, raised $205 million. In the previous month, healthcare operator Burjeel listed on the Abu Dhabi market and raised $300 million.
Last but not least, the above-mentioned Americana IPO was a pioneer in many ways. The company had been listed before, in the Kuwait market, but was taken private in 2017 for $3.5 billion.
Its new owners included Emaar founder Mohamed Alabbar, Saudi Arabia’s Public Investment Fund (PIF) and Abu Dhabi investors. This year’s IPO was the first dual listing on the Saudi and Abu Dhabi exchanges, and it valued the company at $6.2 billion.
The deal highlights the extraordinary progress that GCC markets have made in the past five years.
In December 2017, GCC markets accounted for 1.2 per cent of the MSCI Emerging Markets Index; today, they are 7.5 per cent.
Turnover for the four major GCC countries has averaged $2.7 billion a day in 2022; in 2017, that figure was $1.2 billion. Foreign investors bought $21.5 billion net in the GCC in the first ten months of 2022.
Looking ahead, the IPO pipeline for 2023 looks very strong. Governments and private companies are keen to sell equity while there is strong interest in the region.
Oil prices have wobbled in recent weeks because of concerns about global growth next week, but we think that they will stay elevated — well above $70 a barrel — in the medium term.
GCC markets are trading at a decent premium to emerging market peers. The MSCI GCC index is at 13.2 times 2023 price-to-earnings (PE); the MSCI EM index is at 11.5 times 2023 PE. This premium is large enough for GCC companies to sell equity, but not large enough to deter investors.
However, 2023 will be a year of change in the GCC. Dollar pegs mean that when the US Fed raises interest rates — as it did this week by raising 50 basis points — GCC central banks must follow suit.
Local investors in the region face a trade-off: they either keep investing in IPOs and the broader market or take some money off the table and put it in bank deposits. That makes it more important for GCC companies to appeal to foreign investors as they come to the market.
For companies in Saudi Arabia, that means they should start taking steps to register with US regulators to offer shares to US investors. More broadly, GCC stock exchanges should keep developing their markets to attract foreign institutions.
It is good to see governments selling stakes in more mature businesses such as Dewa or Adnoc Drilling, freeing up cash to invest elsewhere.
However, notwithstanding the recent listing of Americana, private companies are still underrepresented in the GCC IPO market. 2023 should be the year in which more GCC private companies meet global emerging market investors in the continuing GCC boom.
Simon Kitchen is managing director and head of strategy at EFG Hermes Research
Three-day coronation
Royal purification
The entire coronation ceremony extends over three days from May 4-6, but Saturday is the one to watch. At the time of 10:09am the royal purification ceremony begins. Wearing a white robe, the king will enter a pavilion at the Grand Palace, where he will be doused in sacred water from five rivers and four ponds in Thailand. In the distant past water was collected from specific rivers in India, reflecting the influential blend of Hindu and Buddhist cosmology on the coronation. Hindu Brahmins and the country's most senior Buddhist monks will be present. Coronation practices can be traced back thousands of years to ancient India.
The crown
Not long after royal purification rites, the king proceeds to the Baisal Daksin Throne Hall where he receives sacred water from eight directions. Symbolically that means he has received legitimacy from all directions of the kingdom. He ascends the Bhadrapitha Throne, where in regal robes he sits under a Nine-Tiered Umbrella of State. Brahmins will hand the monarch the royal regalia, including a wooden sceptre inlaid with gold, a precious stone-encrusted sword believed to have been found in a lake in northern Cambodia, slippers, and a whisk made from yak's hair.
The Great Crown of Victory is the centrepiece. Tiered, gold and weighing 7.3 kilograms, it has a diamond from India at the top. Vajiralongkorn will personally place the crown on his own head and then issues his first royal command.
The audience
On Saturday afternoon, the newly-crowned king is set to grant a "grand audience" to members of the royal family, the privy council, the cabinet and senior officials. Two hours later the king will visit the Temple of the Emerald Buddha, the most sacred space in Thailand, which on normal days is thronged with tourists. He then symbolically moves into the Royal Residence.
The procession
The main element of Sunday's ceremonies, streets across Bangkok's historic heart have been blocked off in preparation for this moment. The king will sit on a royal palanquin carried by soldiers dressed in colourful traditional garb. A 21-gun salute will start the procession. Some 200,000 people are expected to line the seven-kilometre route around the city.
Meet the people
On the last day of the ceremony Rama X will appear on the balcony of Suddhaisavarya Prasad Hall in the Grand Palace at 4:30pm "to receive the good wishes of the people". An hour later, diplomats will be given an audience at the Grand Palace. This is the only time during the ceremony that representatives of foreign governments will greet the king.
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Mohammed bin Zayed Majlis
Profile of Foodics
Founders: Ahmad AlZaini and Mosab AlOthmani
Based: Riyadh
Sector: Software
Employees: 150
Amount raised: $8m through seed and Series A - Series B raise ongoing
Funders: Raed Advanced Investment Co, Al-Riyadh Al Walid Investment Co, 500 Falcons, SWM Investment, AlShoaibah SPV, Faith Capital, Technology Investments Co, Savour Holding, Future Resources, Derayah Custody Co.
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RESULT
Leeds United 1 Manchester City 1
Leeds: Rodrigo (59')
Man City: Sterling (17')
Man of the Match: Rodrigo Moreno (Leeds)
THE SPECS
Touareg Highline
Engine: 3.0-litre, V6
Transmission: 8-speed automatic
Power: 340hp
Torque: 450Nm
Price: Dh239,312
UAE currency: the story behind the money in your pockets
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Last five meetings
2013: South Korea 0-2 Brazil
2002: South Korea 2-3 Brazil
1999: South Korea 1-0 Brazil
1997: South Korea 1-2 Brazil
1995: South Korea 0-1 Brazil
Note: All friendlies
McLaren GT specs
Engine: 4-litre twin-turbo V8
Transmission: seven-speed
Power: 620bhp
Torque: 630Nm
Price: Dh875,000
On sale: now
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Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
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BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
On sale: Now
Price: From Dh650,000
BIGGEST CYBER SECURITY INCIDENTS IN RECENT TIMES
SolarWinds supply chain attack: Came to light in December 2020 but had taken root for several months, compromising major tech companies, governments and its entities
Microsoft Exchange server exploitation: March 2021; attackers used a vulnerability to steal emails
Kaseya attack: July 2021; ransomware hit perpetrated REvil, resulting in severe downtime for more than 1,000 companies
Log4j breach: December 2021; attackers exploited the Java-written code to inflitrate businesses and governments
The view from The National
List of officials:
Referees: Chris Broad, David Boon, Jeff Crowe, Andy Pycroft, Ranjan Madugalle and Richie Richardson.
Umpires: Aleem Dar, Kumara Dharmasena, Marais Erasmus, Chris Gaffaney, Ian Gould, Richard Illingworth, Richard Kettleborough, Nigel Llong, Bruce Oxenford, Ruchira Palliyaguruge, Sundaram Ravi, Paul Reiffel, Rod Tucker, Michael Gough, Joel Wilson and Paul Wilson.
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UAE currency: the story behind the money in your pockets
The view from The National
Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
KILLING OF QASSEM SULEIMANI
Tips to stay safe during hot weather
- Stay hydrated: Drink plenty of fluids, especially water. Avoid alcohol and caffeine, which can increase dehydration.
- Seek cool environments: Use air conditioning, fans, or visit community spaces with climate control.
- Limit outdoor activities: Avoid strenuous activity during peak heat. If outside, seek shade and wear a wide-brimmed hat.
- Dress appropriately: Wear lightweight, loose and light-coloured clothing to facilitate heat loss.
- Check on vulnerable people: Regularly check in on elderly neighbours, young children and those with health conditions.
- Home adaptations: Use blinds or curtains to block sunlight, avoid using ovens or stoves, and ventilate living spaces during cooler hours.
- Recognise heat illness: Learn the signs of heat exhaustion and heat stroke (dizziness, confusion, rapid pulse, nausea), and seek medical attention if symptoms occur.
Thanksgiving meals to try
World Cut Steakhouse, Habtoor Palace Hotel, Dubai. On Thursday evening, head chef Diego Solis will be serving a high-end sounding four-course meal that features chestnut veloute with smoked duck breast, turkey roulade accompanied by winter vegetables and foie gras and pecan pie, cranberry compote and popcorn ice cream.
Jones the Grocer, various locations across the UAE. Jones’s take-home holiday menu delivers on the favourites: whole roast turkeys, an array of accompaniments (duck fat roast potatoes, sausages wrapped in beef bacon, honey-glazed parsnips and carrots) and more, as well as festive food platters, canapes and both apple and pumpkin pies.
Ruth’s Chris Steakhouse, The Address Hotel, Dubai. This New Orleans-style restaurant is keen to take the stress out of entertaining, so until December 25 you can order a full seasonal meal from its Takeaway Turkey Feast menu, which features turkey, homemade gravy and a selection of sides – think green beans with almond flakes, roasted Brussels sprouts, sweet potato casserole and bread stuffing – to pick up and eat at home.
The Mattar Farm Kitchen, Dubai. From now until Christmas, Hattem Mattar and his team will be producing game- changing smoked turkeys that you can enjoy at home over the festive period.
Nolu’s, The Galleria Mall, Maryah Island Abu Dhabi. With much of the menu focused on a California inspired “farm to table” approach (with Afghani influence), it only seems right that Nolu’s will be serving their take on the Thanksgiving spread, with a brunch at the Downtown location from 12pm to 4pm on Friday.
Paltan
Producer: JP Films, Zee Studios
Director: JP Dutta
Cast: Jackie Shroff, Sonu Sood, Arjun Rampal, Siddhanth Kapoor, Luv Sinha and Harshvardhan Rane
Rating: 2/5
Indoor Cricket World Cup - Sept 16-20, Insportz, Dubai
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