Dubai is becoming a super magnet for big IPOs

Bloomberg ran a feature on Dubai’s rise as a magnet for big IPOs on Sunday, with the UAE as a whole set to be the busiest listing venue in Europe and the Mena region for the third consecutive year. Emirates NBD says Talabat’s recent blockbuster USD 2 bn IPO — the largest in the region and the biggest tech IPO of the year globally — is “not a one-off,” with the bank in “active discussions” with several issuers and sponsors exploring tapping Dubai’s bourse, the bank’s Prasad Chari, group head of equity capital markets, said.

The listing of state-owned companies gave Dubai’s bourse impetus after a quiet lull that stood in contrast with busy IPO pipelines in Riyadh and Abu Dhabi. This was later boosted further by the post-pandemic boom of Dubai’s economy, driven by the World Expo, tourism, and expat influx. The Dubai Financial Market General Index has risen by 20% YTD, but analysts warn that higher valuations could make the market vulnerable to setbacks, especially if global growth slows.