UAE and Saudi Arabia are predicted to lead the IPO markets in the MENA region, according to EFG Hermes analysts. Karim Awad, CEO of EFG Hermes Holding, made this announcement during the 17th EFG Hermes One-on-One Conference in Dubai, where executives from various companies met with regional and global institutional investors to discuss key trends in frontier and emerging markets.
Awad also revealed that his group is planning to launch five sectoral IPOs in the GCC market between the second and fourth quarters of this year. According to Awad, the EFG Hermes One-on-One Conference serves as a catalyst for growth in capital market investment across frontier and emerging markets (FEM), creating direct communication channels between investors and promising listed companies. He also noted that the upcoming COP 28 conference in the UAE presents an opportune time for companies to discuss how investors can contribute to the journey towards net-zero by incorporating responsible investment practices and frameworks into their financial considerations for sustainable development.
Additionally, Awad commented that 2022 was marked by macroeconomic volatility due to factors such as high inflation rates, challenging interest environments, and global capital market activity and investor sentiment dampened by the Russia-Ukraine crisis.
According to EFG Hermes, the first quarter of 2023 has shown a slowdown in commodity price increases due to alternative supplies coming online and China’s easing of zero-COVID policies, leading to increased investment in emerging market securities at a near-record rate.
The GCC region, in particular, has demonstrated resilience against global turbulence, driven by a strong crude oil market and government initiatives that have deepened the region’s capital markets. Mohamed Ebeid, Co-CEO of the Investment Bank at EFG Hermes Holding, stated that the MSCI EM equities index has been trading at 20% or more above last year’s low since the beginning of the year, with emerging economies expected to grow faster than advanced ones.
The GCC has become a significant investment hub for regional and global investors, and EFG Hermes plans to continue capitalizing on this trend by expanding their transaction pipeline in equity, debt, and M&A deals, unlocking opportunities for clients and investors.
