UAE In-Focus: UAE has 11 IPOs worth $2.2bn in the pipeline, says top official

RIYADH: After seeing its highest level of initial public offerings by total value in 2022 for 14 years, the UAE is set to keep the momentum going with more than 8 billion dirhams ($2.2 billion) worth of IPOs in the pipeline this year, a said the top official.

Mohammed Khalifa Al Hadari, deputy CEO of the Securities and Commodities Authority, said at the MENA IPO Summit in Dubai that 2021 has been a year of recovery, but 2022 is expected to see significant growth in local capital markets.

“There are 11 new IPOs, including four free zone companies and two special purpose acquisition companies, with a value of more than 8 billion dirhams, which are currently in the pipeline,” he added.

Al Haidri said: “The current flurry of activity is more sustainable than previous IPO booms as it forms part of a broadly defined government strategy to expand the diversity of markets supplied.

“The Dubai government last year announced plans for 10 state-owned companies as part of its strategy to double the size of the capital market to nearly 3 trillion dirhams and attract foreign investment.”

The UAE’s IPO pipeline was very strong last year, with several public and private sector entities listed on the Dubai and Abu Dhabi stock exchanges.

Dubai entities to IPO last year included the Dubai Electricity and Water Authority, which raised 22.3 billion dirhams, the largest IPO in the UAE and Europe, the Middle East and Africa.

Al Hadari said the Abu Dhabi Securities Exchange could list an additional 13 companies this year, including four from outside the UAE.

India-UAE Partnership Summit calls for economic partnership

The India-UAE Partnership Summit called for building a new economic partnership that can drive the strategic development plans of both countries.

The summit, held at the Dubai Chambers’ headquarters, was inaugurated by the Indian Minister of Commerce and Industry, Piyush Goyal. He highlighted that the UAE-India Comprehensive Economic Partnership Agreement has provided a natural boost to key sectors such as food and agricultural products, as well as gems and jewellery.

Goyal said, “Both India and the UAE are pursuing dynamic trade and investment policies… Our growing bilateral trade will play an integral role in the UAE’s efforts to double the size of its economy by 2030.”

He added: “The destinies of the UAE and India have been inextricably linked for centuries. A close cooperation, trust and spirit of entrepreneurship open up limitless opportunities for our economies, our industries, our cities and our people, now and for generations to come Will create

During his keynote address, Mohammed Ali Rashid Loota, President and CEO of Dubai Chambers, revealed that the number of new Indian companies joining the Dubai Chamber of Commerce in 2022 has crossed 11,000, taking the total number of Indian companies registered with the chamber to 10,000. The total number exceeded 100. 83,000.

He affirmed that this year the activities of the Chamber’s Mumbai office would expand to keep pace with the growing momentum in bilateral relations.

Abu Dhabi hotel revenue to reach $1.5bn in 2022

A total of 4.1 million hotel visitors stayed in Abu Dhabi hotels during 2022, up 24 percent from 2021, reflecting a strong rebound in tourism, figures from the Department of Culture and Tourism – Abu Dhabi show.

Hotel revenue in 2022 is expected to increase by 23 percent to 5.4 billion dirhams compared to the previous year.

The data shows that Abu Dhabi hotels recorded an occupancy rate of 70 percent during the reference year, an increase of 0.2 percent compared to 2021.

The average hotel stay for guests was almost 3 nights per guest, and the average revenue per available room was AED 263, up 19 percent.

During the past year, UAE nationals accounted for the largest share of the capital’s hotel guests, accounting for 29 percent, or 1.18 million guests.

Indian nationalities lead all other non-Emiratis, with a share equal to 12 percent or 480,000 visitors, up 31 percent from the same period in 2021.