UAE stock market cap surges by $5.79bn in 2024 with strong IPO activity

The market value of listed stocks in the UAE grew by over 444.5 billion dirhams throughout 2023. Shutterstock
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Updated 18 June 2024
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UAE stock market cap surges by $5.79bn in 2024 with strong IPO activity

RIYADH: The UAE’s stock market capitalization has surged by 21.3 billion dirhams ($5.79 billion) this year, thanks to three new initial public offerings launched since the beginning of 2024, according to a new analysis.  

Alef Education Holding, Parkin, and Spinneys 1961 Holding, were the firms to float on the market, and the moves significantly boosted liquidity, increased investment attractiveness, and reinforced the UAE’s position as a premier financial and business hub globally, according to the Emirates News Agency.    

These IPOs came as the market value of listed stocks in the UAE grew by over 444.5 billion dirhams throughout 2023, pushing the total market capitalization to 3.651 trillion dirhams by year-end.   

This growth fits in with the ambition of the country to double its stock market value to approximately 6 trillion dirhams in the coming years. 

Alef Education Holding’s IPO, the first on the Abu Dhabi Securities Exchange in 2024, led the way in 2024 with a market capitalization of around 9.45 billion dirhams. The company raised 1.89 billion dirhams by selling 1.4 billion shares, representing 20 percent of its total shares, at 1.35 dirhams per share.   

The IPO saw strong demand, surpassing the target subscription value by 39 times, even after the individual investor allocation was increased from 8 percent to 10 percent.  

Dubai’s exclusive operator of paid public parking, Parkin, achieved a market capitalization of 6.3 billion dirhams upon its March listing on the Dubai Financial Market, marking the first listing of 2024. 

Parkin’s listing garnered substantial interest from both international and regional institutional investors, along with individual investors in the UAE, resulting in total subscription requests reaching approximately 259 billion dirhams — nearly 165 times the subscription value. 

This strong demand underscores investor confidence in the company’s growth strategy as a robust investment opportunity, backed by the city’s steady economic performance and population expansion. 

In May, Spinneys 1961 Holding achieved a market capitalization of 5.5 billion dirhams upon its listing on the DFM, following a widely subscribed public offering. 

The premium grocery retailer attracted significant interest from regional and international investors, including institutions and individuals in the UAE, with total subscription requests amounting to approximately 71 billion dirhams. 

Demand exceeded the offering size by 64 times across all investor segments, excluding the anchor investor, marking the highest demand and coverage ratio for non-governmental IPOs on the DFM in recent years. 

A report titled “IPO+ Watch” by PwC in May indicated that IPOs in the Middle East are expected to continue their positive aftermarket performance in 2024, following significant gains in the first quarter. 

The report highlighted that private sector companies seeking liquidity and access to capital are anticipated to drive much of this activity, with Saudi Arabia and the UAE leading the way.  

Additionally, there is increasing momentum in markets such as Oman and Qatar, signaling broader regional expansion in IPO activity. 


New SPARK launch ushers Eastern Province from black gold to EV charging and AI mobility

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New SPARK launch ushers Eastern Province from black gold to EV charging and AI mobility

DAMMAM: The lavender carpet was rolled out and the symbolic shovels were placed in decorative sandboxes as Smart Mobility broke ground, bringing Saudi-made EV charging to life at its first manufacturing facility at King Salman Energy Park in Dammam.

As part of the ceremony, Smart Mobility inaugurated SPARK’s first electric vehicle charging station.

The project brought together Foxconn Interconnect Technology, a unit of Taiwan’s Foxconn that makes components used for connectivity, and Saudi’s Saleh Suleiman Alrajhi & Sons. 

It also represented a significant milestone in supporting foreign investment in the Kingdom and a major step toward localizing advanced manufacturing capabilities in order to support the rapidly-growing EV market.

“As we gather today to celebrate a groundbreaking of an important edition in this ecosystem …we’re creating a community— with all that comes with a community,” SPARK President and CEO Mishal Al-Zughaibi said.

He highlighted the park’s proximity to the Kingdom’s core energy infrastructure.

It will be headquartered in the Eastern Province, notably near to where Aramco’s Well No. 7, later named “Prosperity Well,” struck black gold in 1938, six years after the country unified as a Kingdom. That discovery changed the country — and the world. 

In recent years, there has been a tremendous effort to diversify beyond oil and, once again, the Eastern Province is at the forefront, but this time, it is using innovation and AI to catapult the Kingdom into that new realm. 

The location was also ideal, it was noted, on several levels, including how it would allow for ample access to ports, and the planned integration with the future GCC Railway network would additionally create a unified regional manufacturing and export corridor. 

According to Smart Mobility, SPARK facility was created with the aim to produce Saudi-made EV charging solutions, including the Charging Point Management System. Three products are already certified by the Saudi Standards, Metrology and Quality Organization. 

Launching in 2026, the project aims to align with Vision 2030 and to support local content goals, which will be overseen by the Local Content and Government Procurement Authority.

Smart Mobility CEO, Prince Fahad Nawaf Al Saud, who was on hand, said the decision to build at SPARK was strategic.

“SPARK is the Kingdom’s primary hub for energy, logistics and industrial innovation. For EV infrastructure to scale reliably, it must be integrated with the country’s most critical energy assets,” he said.

Prince Fahad also addressed the evolving and morphing nature of the industry, saying: “Mobility is being reshaped by artificial intelligence. Vehicles are becoming intelligent systems that think, react and connect. Level-4 autonomous capability is accelerating globally and these systems depend on electric platforms.”

He added that if the Kingdom aims to lead in AI, automation and smart city technologies, it must develop EV infrastructure as a foundational national pillar.

“EVs are not simply a fuel alternative — they are the operating system of the AI era,” he said.

Prince Fahad stated: “This groundbreaking ceremony is not only a milestone for Smart Mobility, it is a milestone for the Kingdom.”

He added: “Guided by his Royal Highness Crown Prince Mohammed bin Salman, we built this with the support from the Ministry of Energy, Ministry of Industry, and Ministry of Investment and many government entities that continue to empower our national ambitions to localization and advanced manufacturing.” 

Continuing to address the crowd, Prince Fahad said: “Some people in Saudi love petrol cars, fuel is cheap — why would anyone shift it to electric? And they are right (to question that). Traditional vehicles are still deeply loved, but we must also recognize the truth.” 

The truth, to him, is that AI is “no longer science fiction,” it is reality now. “We are entering an age where we must respond quickly to global changes … we have much work ahead to test, to certify, to scale and to deliver on the promise,” he said.

“The world is entering a new chapter defined not by horsepower but by computing powe r— and Saudi Arabia must lead, not follow in this transition,” Prince Fahad added.. 

FIT Chairman and CEO Sidney Lu noted that next year the Chinese calendar will welcome the Year of the Horse, an apt metaphorical transition as it signals powerfully moving forward from old to now.

He was excited to be on the ground on his first visit to the Eastern Province. 

“FIT brings decades of experience in precision manufacturing, high-reliability electronics, and large-scale global production,” Lu said, adding: “Our shared objective is clear: bring world-class technologies into Saudi Arabia, embed them locally and position Saudi-made solutions for future export.”

While Lu headed back to his home in Taiwan following the meeting “to recharge,” he said the joint venture will be showcasing FIT’s global manufacturing expertise with Saudi Arabia’s industrial ambitions — and that gives him much energy. 

 “I love this place. Every time I come over here, I get inspired; inspired by the spirits, by the energy, by the youth. And I really get inspired with how people are willing to move forward,” Lu told Arab News.