DUBAI: Abu Dhabi is hoping to fast-track at least $5 billion of stock market listings by state-backed companies next year before Saudi Aramco’s planned $100 billion IPO dominates investor demand.
Like neighboring Saudi Arabia, Abu Dhabi is restructuring its industrial sector, hoping to lure foreign investors with privatizations after lower energy prices depleted its coffers.
This could result in at least five large listings, including the fuel distribution unit of Abu Dhabi National Oil Co., aluminum-maker EGA, industrial conglomerate Senaat and Abu Dhabi Ports, government and banking sources said.
Bankers had pitched for the Abu Dhabi Ports IPO, but no decision has been made and the company has said there are no immediate plans for listing.
The IPOs could raise at least $5 billion, several of the sources said, exceeding money raised through listings in the UAE over the last five years, according to Thomson Reuters data. A total number of 13 IPOs have raised $4.49 billion since 2012.
Bankers said the companies hope to complete their IPOs before Saudi Arabia’s IPO of its crown jewel Saudi Aramco either in late 2018 or early 2019 as part of a wider multi-billion dollar privatization program.
Sanyalaksna Manibhandu, head of research at First Abu Dhabi Bank, said the aim was to get ahead of the IPO of Saudi Aramco and the upgrade of MSCI Saudi Arabia to emerging market status.
Government-owned companies in Abu Dhabi have been told to manage budgets efficiently and control spending and possibly raise their own finances for expansion to make them less reliant on the state, a source close to the government said.
“Abu Dhabi is taking bold measures to kickstart the markets and boost investor confidence by pushing government-related entities to sell shares and list publicly,” said an Abu Dhabi-based senior bank executive who has advised on deals there.
At the same time, Abu Dhabi-based companies spanning sectors such as banking, insurance, services and health care are also expected to go through more consolidation, the sources said.
Last year Abu Dhabi merged its two sovereign wealth funds, Mubadala and IPIC, while National Bank of Abu Dhabi and First Gulf Bank created one of the largest banks in the Middle East and Africa.
“When we were a very young country, you could have multiple companies and you basically had to grab your domestic market share. Now it’s time to reach the size where we need to export our services, export our business,” said Sabah Al-Binali, a UAE-based investor.
Abu Dhabi is using tougher economic conditions to push through reforms that would have been harder to implement in previous years, when higher oil prices boosted its revenue.
“The good old days of the state bearing the weight of spending and providing subsidies because of rich resources is over. That model is outdated,” an Abu Dhabi-based banker said.
“The private sector has to bear the burden too now, something Abu Dhabi has realized.”
Abu Dhabi targets IPO frenzy ahead of Saudi Aramco
Abu Dhabi targets IPO frenzy ahead of Saudi Aramco
Closing Bell: Saudi main market sheds 85 points to finish at 11,098
RIYADH: Saudi Arabia’s Tadawul All Share Index closed lower in the latest session, falling 85.79 points, or 0.77 percent, to finish at 11,098.06.
The MSCI Tadawul 30 Index declined 0.63 percent to close at 1,495.23, while the parallel market index Nomu dropped 0.91 percent to 23,548.56.
Market breadth was firmly negative, with 42 gainers against 218 decliners on the main market. Trading activity saw 226 million shares exchanged, with total turnover reaching SR4.5 billion ($1.19 billion).
Among the session’s gainers, Tourism Enterprise Co. rose 9.40 percent to SR15.02. SHL Finance Co. advanced 4.51 percent to SR16.00, while Almasar Alshamil for Education Co. gained 3.56 percent to SR23.88.
Dar Alarkan Real Estate Development Co. added 3.03 percent to SR19.70, and Banque Saudi Fransi climbed 2.61 percent to SR19.30.
On the losing side, Almasane Alkobra Mining Co. recorded the steepest decline, falling 6.61 percent to SR96.
Al Moammar Information Systems Co. dropped 5.14 percent to SR164.20, while National Company for Learning and Education declined 4.60 percent to SR124.30. Saudi Ceramic Co. slipped 4.14 percent to SR27.30, and Arabian Contracting Services Co. fell 4.12 percent to SR116.50.
On the announcement front, Saudi Telecom Co. announced the distribution of interim cash dividends for the fourth quarter of 2025 in line with its approved dividend policy.
The company will distribute SR2.74 billion, equivalent to SR0.55 per share, to shareholders for the quarter.
The number of shares eligible for dividends stands at approximately 4.99 billion shares. The eligibility date has been set for Feb. 23, with distribution scheduled for March 12.
The company noted that treasury shares are not entitled to dividends and that payments will be made through Riyad Bank via direct transfer to shareholders’ bank accounts. stc shares last traded at SR44.80, unchanged on the session.
Separately, National Environmental Recycling Co., known as Tadweer, reported its annual financial results for the year ended Dec. 31, 2025, posting significant growth in revenue and profit.
Revenue rose 53.5 percent year on year to SR1.24 billion, compared with SR806 million in the previous year. Net profit attributable to shareholders increased 68.4 percent to SR60.9 million, up from SR36.2 million a year earlier, driven by higher sales volumes and operational expansion.
Tadweer shares last traded at SR3.80, up 2.70 percent.
