UAE Capital Markets Demonstrate Resilience Amid Global Volatility, According To Emirates NBD Executive

The UAE's capital markets are showing resilience despite global challenges, according to Prasad Chari, Senior Managing Director of Equity Capital Markets at Emirates NBD. Chari highlighted that the influx of high-net-worth individuals and global asset managers moving to the UAE is positively impacting the country's capital markets.

Chari noted that local and regional investors' long-term investment strategies have strengthened the ability of domestic and regional capital markets to handle new offerings, even in tough times. He reviewed several initial public offerings (IPOs) like DEWA, TECOM, Dubai Taxi, and Spinneys. These IPOs occurred during significant global events and rising interest rates but were successful due to investor confidence.

Discussing the current year's IPO pace, Chari mentioned that the UAE market has seen one listing and a Real Estate Investment Trust (REIT) offering so far. However, he pointed out that other activities like voluntary takeover bids, block trades, and speciality offerings are also active. These operations contribute to increased liquidity and greater investor involvement.

Chari explained that while the number of IPOs might not match last year's figures, the volume of capital raised could be similar or even higher. This is expected with upcoming offerings planned around the summer season. The market's strong performance continues under various conditions due to established trust among investors and institutions.

In recent years, several IPOs have taken place amid major global events. Despite these challenges, they proceeded successfully, showcasing the market's strength. The confidence built among investors has played a crucial role in maintaining this robust performance.

The UAE's capital markets are benefiting from an increasing number of high-net-worth individuals and global asset managers relocating to the region. This trend is directly enhancing market performance by boosting liquidity and investor participation.

The resilience of UAE's capital markets amidst global volatilities highlights their capacity to adapt and thrive. The strategic approach of local investors further supports this adaptability by ensuring readiness for new opportunities even in uncertain times.

Chari emphasised that although fewer IPOs may occur this year compared to last year, the overall capital raised will likely remain substantial. This outlook reflects confidence in the market's ability to attract significant investments despite varying external conditions.

With inputs from WAM