The Dubai International Financial Center (DIFC) has recently released a report in collaboration with the Data and Analytics Unit of the London Stock Exchange Group, titled “Regional Outlook for the Banking Sector and Capital Markets.” The report discusses anticipated growth in regional IPOs across three phases: privatization of state-related entities, listing of family businesses, and entry of fintech companies and technology-based startups.
The report highlights the influx of investors in Dubai and the broader region, attracted by available investment opportunities. Arif Amiri, CEO of DIFC Authority, emphasized that market reforms have driven investment flows. The DIFC plays a crucial role in fostering innovation and growth in the financial sector.
After moderate IPO activity, 2024 indicated signs of recovery with 51 initial public offerings worth $22 billion in 2022. The impact of privatization on economic diversification, private sector growth, and sovereign liquidity was highlighted. Notable examples include successful public offerings by Dubai entities.
Family businesses contribute significantly to business growth and governance, as evidenced by successful IPOs like Al Ansari Financial Services. Anticipated listings such as Lulu indicate a growing trend among family businesses going public. The report also predicted a third wave of IPOs driven by financial technology companies, stimulating sectors with high growth potential.
The DIFC ecosystem has greatly benefited from increased IPO activity, with deal fees exceeding $1.2 billion in the MENA region in 2023. The maturation of the region’s capital markets was underscored by the DIFC’s regulatory framework and commitment to innovation. With over 230 investment banks hosted in the DIFC, it remains a pivotal hub for capital markets.
Dubai’s capital markets have been strengthened through market reforms and alignment with global standards, attracting a diverse array of investors
