International Business: Middle East bucks global IPO slump – Gulf Digital News

International Business: Middle East bucks global IPO slump – Gulf Digital News

Almost half of the listing proceeds in Europe, the Middle East and Africa this year come from the Arabian Gulf, as the region bucks a global downturn in initial public offering (IPO) activity on the back of high crude prices and strong investor demand.

Middle Eastern IPOs have fetched $18 billion this year, representing 47 per cent of the wider region’s $38.2bn, data compiled by Bloomberg show. It’s the highest share for the Gulf on record after 2019, when Saudi oil giant Aramco went public in a $29bn offering, the world’s largest.

While most major markets – including Europe – have seen IPOs slump sharply from last year’s record levels because of falling stocks and high inflation, it’s been a completely different story in the Middle East.

A surge in oil prices through 2021 and the early months of this year, coupled with a rotation by investors into the region, have helped underpin listing activity. That had already started gaining steam in 2021 as governments sold stakes in companies to help fund a transition away from oil.

Stock markets in the Gulf have also held up a lot better than elsewhere, which has further boosted listing activity. Despite falling 16pc from an April high,