According to Goldman Sachs Group Inc., Saudi Arabia will continue to be the busiest stock market in the Middle East, even as the United Arab Emirates pushes more companies to go public. The bank’s head of emerging-market equities capital markets, located in London, termed 2021 a “standout year” for the Arabian Gulf. In Saudi Arabia, ACWA Power, STC Solutions, and Saudi Tadawul Group Holding Co, as well as a number of companies throughout Abu Dhabi, initial public offerings brought the total amount of stock issued in the Middle East and North Africa to almost $23 billion. According to Wilkinson, the majority of the major IPOs have had strong post-IPO results, attracting more overseas investors. In an interview, he noted that Saudi Arabia is still “the largest engine for Middle East ECM.” “However, we’re seeing Abu Dhabi Inc becoming more active, and the UAE’s government’s comments will undoubtedly encourage higher volumes from the UAE in the future.” Riyadh has had the most listings of any Gulf country in the previous year. The rise in oil prices to above $85 per barrel and the government’s relaxation of coronavirus quarantines have benefited Saudi Arabia’s economy, which is the largest in the Middle East. According to Bloomberg data, the Tadawul All Share Index is up 8% this year, making it one of the world’s greatest performers.
Goldman has been the top underwriter for stock issues across Europe, Middle East, and Africa for three years in a row, despite the departure of some of its most senior bankers, since the early repercussions from Malaysian fund 1MDB’s fraud and bribery scandal. JPMorgan Chase & Co. and Morgan Stanley followed the New York-based firm in 2021. Since hiring Eyas Aldossari as head of investment banking in 2017, Goldman has aggressively expanded its presence in Saudi Arabia. As a result, it has been able to catch up to rivals such as HSBC Holdings Plc and JPMorgan Chase & Co., which have connections to the kingdom’s history. In 2019, Goldman was a bookrunner on Aramco’s record-breaking $29 billion IPO. In 2021, it was also a consultant on a number of well-known companies in Riyadh and Abu Dhabi, including Saudi Telecom Co, Adnoc Drilling, and Fertiglobe. Other businesses are now considering going public as well. To regain trade momentum and catch up with Riyadh and Abu Dhabi, the Dubai government announced plans to sell shares in ten state-owned enterprises in early November. Among the IPOs in the pipeline are deals for the emirate’s main utility, DEWA, and its road-toll firm. The Dubai Financial Market General Index, which is now dominated by real estate, telecommunications, and banking industries, could be reshaped as a result of these listings.
Source: https://www.gulf-times.com/story/708484/Saudi-Arabia-will-remain-top-driver-of-Middle-East