Dubai Investments is considering listing one of its units, amid the continued momentum of initial public offerings in the region.
Chief executive Khalid bin Kalban indicated an initial public offering for Dubai Investments Park (DIP) is being planned in February, and its flagship industrial park would be floated in 2026, according to a Bloomberg report on Friday.
The company, however, declined to further comment to The National. A representative of Dubai Investments said “nothing has been formally” decided and did not confirm the figures reported.
The diversified global investment company, with about Dh22.7 billion ($6.2 billion) of assets as of the end of June, is likely to sell a 25 per cent stake in DIP, using the proceeds for expansion, with similar plans for its other parks, Mr bin Kalban was quoted as saying by Bloomberg.
The IPO could value DIP at between Dh8 billion and Dh10 billion, the report added, citing sources.
Earlier this year, Mr bin Kalban told The National that Dubai Investments plans to take four of its subsidiaries public amid the continued momentum of IPOs in the region.
At the time, he did not elaborate on which company units would be listed and when, but said they would consider which was the “better one to start with”.
Bourses in Dubai and Abu Dhabi have experienced a sustained IPO momentum in the past few years as the UAE, the Arab world’s second-largest economy, grows amid diversification efforts.
There were seven IPOs across the UAE in 2024, accounting for 47 per cent, or $6.2 billion, of total Gulf proceeds last year, according to a PwC report.
Last year saw the highest Gulf IPO volumes on record, with 53 listings across the region and a total of $13.2 billion raised, the report said.
The secondary share sale, or free float, segment has also gained traction as UAE companies look to boost liquidity and diversify their investor base to be included in international indices.
Inclusion in international indices, such as the MSCI, usually supports increased liquidity for a company’s shares and can help to attract regional and global institutional investors.
Recent free floats include Mamoura Diversified Global Holding's sale of 75 per cent of its stake in Dubai telecom operator du this week, which is expected to raise Dh923 billion, and Abu Dhabi National Oil Company raising $317 million from the share sale of its Adnoc Logistics and Services unit.
Adnoc Gas will be added to the FTSE Emerging Index later this month, after its inclusion in the MSCI Emerging Markets Index in June.
Dubai Investments, established in 1995, had nearly 16,000 investors at the end of June, according to its website. Its shares were up 2.8 per cent to Dh2.94 during midday trading on Friday on the Dubai Financial Market.
Its portfolio includes interests in real estate, building materials and construction, education, health care and financial services, in addition to subholding companies that target other sectors.
Dubai Investments Park, which began operations in 1997, covers 23 square kilometres and hosts more than 4,200 companies, latest data from its website shows.
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Rebel%20Moon%20-%20Part%20One%3A%20A%20Child%20of%20Fire
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3EZack%20Snyder%3Cbr%3E%3Cstrong%3EStars%3A%20%3C%2Fstrong%3ESofia%20Boutella%2C%20Djimon%20Hounsou%2C%20Ed%20Skrein%2C%20Michiel%20Huisman%2C%20Charlie%20Hunnam%3Cbr%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E2%2F5%3C%2Fp%3E%0A
Directed by: Craig Gillespie
Starring: Emma Stone, Emma Thompson, Joel Fry
4/5
UAE currency: the story behind the money in your pockets
Abaya trends
The utilitarian robe held dear by Arab women is undergoing a change that reveals it as an elegant and graceful garment available in a range of colours and fabrics, while retaining its traditional appeal.
More from Aya Iskandarani
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
Biography
Favourite drink: Must have karak chai and Chinese tea every day
Favourite non-Chinese food: Arabic sweets and Indian puri, small round bread of wheat flour
Favourite Chinese dish: Spicy boiled fish or anything cooked by her mother because of its flavour
Best vacation: Returning home to China
Music interests: Enjoys playing the zheng, a string musical instrument
Enjoys reading: Chinese novels, romantic comedies, reading up on business trends, government policy changes
Favourite book: Chairman Mao Zedong’s poems
