Gulf initial public offerings (IPOs) have fallen by half in the first six months of this year as civil unrest and a global economic slowdown discouraged investors and delayed transactions.
PricewaterhouseCoopers (PwC) said deal values in the region, which includes Saudi Arabia and the UAE, have plunged by 57 per cent to US$358 million from $830m a year earlier.
Three out of the only four IPOs in the region in the first half were from UAE companies. Financial markets were rocked this year by the Arab Spring that ousted leaders in Tunisia and Egypt, followed by a US downgrade and worsening European debt crisis.
The Dubai Financial Market General Index has dropped 10 per cent this year, while the Abu Dhabi Securities Exchange General Index has dropped 5 per cent.
Al Noor Hospital in Abu Dhabi was slated to go public by May, and then delayed to September.
Those plans have now been postponed to next year due to unfavourable market conditions and muted investor interest, according to inside sources.
A consortium of investors had named HSBC and JPMorgan to assist in the process.
UAE valuations are the lowest in the Middle East relative to earnings, apart from Egypt, trading at 7 times earnings while the GCC trades at 9 to 11 times.
"To take a company public, the company's valuation needs to be cheaper than the valuations of publicly listed companies in the market for investors to participate," said Mohammed Ali Yasin, the chief investment officer at CAPM Investment in Abu Dhabi.
"With current valuations in the market so low, and our markets price to earnings being the lowest in the region, it is extremely unattractive for private investors to sell their stake at these valuations."
Steve Drake, the head of PwC capital markets Middle East, said: "The three IPOs in the UAE during the first half have brought a much-awaited end to the drought of IPOs on the UAE exchanges.
"The IPO by Eshraq Properties, a company in the recession-hit real-estate sector, is a major confidence booster for both the investors as well as other companies looking to IPO in the near future."
Eshraq Properties raised $225m in May in the first IPO by a UAE property developer since 2007.
Insurance House and National Takaful, also known as Watanaya, two insurance firms based in Abu Dhabi, raised $18m and $22m respectively during the first half, PwC said.
halsayegh@thenational.ae
BORDERLANDS
Starring: Cate Blanchett, Kevin Hart, Jamie Lee Curtis
Director: Eli Roth
Rating: 0/5
Allardyce's management career
Clubs (10) - Limerick (1991-1992), Perston North End (1992), Blackpool (1994-1996), Notts County (1997-1999), Bolton Wanderers (1999-2007), Newcastle United (2007-2008), Blackburn Rovers (2008-2010), West Ham United (2011-2015), Sunderland (2016), Crystal Palace (2016-2017)
Countries (1) - England (2016)
Company%20Profile
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Essentials
The flights
Emirates, Etihad and Malaysia Airlines all fly direct from the UAE to Kuala Lumpur and on to Penang from about Dh2,300 return, including taxes.
Where to stay
In Kuala Lumpur, Element is a recently opened, futuristic hotel high up in a Norman Foster-designed skyscraper. Rooms cost from Dh400 per night, including taxes. Hotel Stripes, also in KL, is a great value design hotel, with an infinity rooftop pool. Rooms cost from Dh310, including taxes.
In Penang, Ren i Tang is a boutique b&b in what was once an ancient Chinese Medicine Hall in the centre of Little India. Rooms cost from Dh220, including taxes.
23 Love Lane in Penang is a luxury boutique heritage hotel in a converted mansion, with private tropical gardens. Rooms cost from Dh400, including taxes.
In Langkawi, Temple Tree is a unique architectural villa hotel consisting of antique houses from all across Malaysia. Rooms cost from Dh350, including taxes.
Company%20Profile
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RACE SCHEDULE
All times UAE ( 4 GMT)
Friday, September 29
First practice: 7am - 8.30am
Second practice: 11am - 12.30pm
Saturday, September 30
Qualifying: 1pm - 2pm
Sunday, October 1
Race: 11am - 1pm
COMPANY%20PROFILE
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TRAP
Starring: Josh Hartnett, Saleka Shyamalan, Ariel Donaghue
Director: M Night Shyamalan
Rating: 3/5
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Tank warfare
Lt Gen Erik Petersen, deputy chief of programs, US Army, has argued it took a “three decade holiday” on modernising tanks.
“There clearly remains a significant armoured heavy ground manoeuvre threat in this world and maintaining a world class armoured force is absolutely vital,” the general said in London last week.
“We are developing next generation capabilities to compete with and deter adversaries to prevent opportunism or miscalculation, and, if necessary, defeat any foe decisively.”
SPECS
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The%20specs
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Blackpink World Tour [Born Pink] In Cinemas
Starring: Rose, Jisoo, Jennie, Lisa
Directors: Min Geun, Oh Yoon-Dong
Rating: 3/5