(MENAFN- The Arabian Post) Arabian Post Staff -Dubai

UAE equity capital markets are poised for an uptick in activity, with Citi forecasting three to five initial public offerings by 31 December-assuming timely regulatory clearance and robust pre‐marketing, said Rudy Saadi, Citi's managing director and head of MENA Equity Capital Markets. This comes amid renewed investor enthusiasm as the nation positions itself as a regional IPO hub.

Saadi noted that although privatisations have slowed, market sentiment remains firmly positive for the remainder of 2025 and into early 2026. The expected pipeline includes a mix of family‐owned concerns and state‐affiliated enterprises alongside follow‐on offerings from listed firms.

Delivering context, UAE exchanges have tapped international and domestic liquidity in recent quarters. Spinneys and Alef Education raised $375 million and $515 million, respectively, in the second quarter, channelling nearly $890 million overall through new IPOs. Dubai and Abu Dhabi exchanges continue to push private‐sector listings, underscoring wider capital‐markets evolution.

Citi's optimism is reinforced by Bloomberg's observation of renewed momentum in regional share sales heading into H2 2025. The uptick appears linked to improved regulatory frameworks, deeper secondary‐market liquidity and evolving investor appetite across institutional, family‐office and retail segments.

Market analysts point to several emerging trends. Firstly, regulatory authorities in both Dubai and Abu Dhabi are progressively enhancing governance and foreign‐ownership rules to attract global participants. UAE entities now find listing conditions more competitive compared with established markets in Europe or the US.

Secondly, a shift is apparent from state privatisations to private‐sector flotations. Family‐owned businesses and tech‐focused enterprises are now stepping into the spotlight-supported by increasing liquidity and appetite from international institutional investors.

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Thirdly, follow‐on share sales are gaining traction, offering listed firms a refundable route for fresh capital without navigating a full IPO process. Analysts expect more such offerings in sectors including financial services, healthcare and logistics, reflecting healthier balance sheets and growth trajectories among UAE firms.

Beyond sheer numbers, quality is a key consideration. Saadi indicates that approval pace and pre‐marketing success are decisive factors. In prior cases, such as Spinneys and Alef Education, strong institutional subscription signalled robust investor interest-suggesting forthcoming listings may mirror this level of demand.

Banking and asset‐management houses in the region-among them Citi, EFG Hermes and Emirates NBD Capital-are reportedly managing a cohort of potential issuers. EFG Hermes projected a busy second half of 2025 across Saudi Arabia and the UAE, with several consumer‐focused businesses preparing to list.

This momentum positions the UAE to lead IPO activity across the Middle East. In 2024, Gulf IPO volumes reached multi‐billion‐dollar levels; UAE exchanges, buoyed by sizeable debuts like Talabat's Dh1.6bn listing in November 2024, claimed top status in IPO fundraising for three consecutive years.

Looking ahead, investor appetite appears steady, albeit cognisant of broader economic headwinds, including global interest‐rate trajectories and geopolitical uncertainties. Saadi stressed the significance of sentiment over macroeconomic factors when gauging regional appetite, citing Middle Eastern equity capital market resilience.

Key players set to define the coming wave include family‐owned conglomerates deliberating partial listings, firms in consumer and tech verticals exploring exit paths, and existing public companies seeking growth capital via follow‐on offerings. Leading financial houses continue to harmonise local issuers with global investor pools.

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