The Dubai International Financial Center (DIFC) has released a report titled “Regional Outlook for the Banking Sector and Capital Markets” in collaboration with the Data and Analytics Unit of the London Stock Exchange Group. The report highlights the anticipated growth in regional IPOs, which are expected to occur in three phases: privatization of state-linked entities, listing of family businesses, and eventual inclusion of fintech companies and technology-based startups.
According to Arif Amiri, CEO of the DIFC Authority, there has been a significant rise in initial public offerings (IPOs) in the MENA region, driven by market reforms and increased investment flows both foreign and regional. The DIFC plays a crucial role in fostering innovation, growth, and advancements in the financial sector through its strategic initiatives and robust regulatory framework.
The report delves into recent IPO activity, citing the rebound in 2024 after a couple of moderate years. In 2022, there were 51 IPOs raising $22 billion, encompassing a mix of family companies and the public sector. Notable success stories include Dubai Taxi Company and Saudi Arabia’s extensive privatization plans to underline the regional trend towards privatization.
The report emphasizes the importance of including family businesses in IPOs to drive growth, improve governance, and enhance transparency. Al Ansari Financial Services and Spinneys are notable examples of companies that have benefited from IPOs and the comprehensive stability of the Dubai International Financial Center.
Looking ahead, the report anticipates a third wave of IPOs involving financial technology companies and technology-based startups, fostering new high-growth sectors and providing viable exit options for venture capital investors. With increased IPO activity, banks, investment firms, and law firms within the DIFC system have reaped significant benefits, with deal fees surpassing $1.2 billion in the MENA region.
Moreover, the report underscores the maturity of the region’s capital markets supported by DIFC’s regulatory framework and commitment to innovation. The DIFC hosts over 230 investment banks working to stimulate capital markets and attract global investors further solidifying Dubai’s position as a financial hub.
With an increasing influx of investors attracted by investment opportunities available in Dubai’s banking sector
