IR Monitor Middle East – July 2022
The Middle East’s fast growing capital markets continue to have allure for global investors – both as regional bases and to capture investment opportunities. MENA issuers – mostly in the Gulf – raised over in the first half of this year, the bulk in Saudi Arabia, according to Refinitiv. The latest mega-listing touted is $500bn futuristic city NEOM, expected in 2024. Elsewhere, the chill global wind around SPACs has finally blown into the region with several banks rethinking their involvement. Finally, the Saudi Exchange, the region’s largest bourse, launched a new Islamic Index in response to the growing demand and interest from local and international investors for Islamic investment tools.
Don’t miss the largest IR event in MENA:
This year’s Middle East Investor Relations Association (MEIRA) Conference takes place on Monday 24 October 2022 at Crown Plaza, Riyadh. Register here.
Gulf appeals to international investors
The FT reported that several money managers have shown interest in launching funds in Dubai and Abu Dhabi as a launchpad for regional expansion. Elsewhere, UBS’ recent ‘Global Family Office Report 2022’ signalled that over the next decade ultra-high net worth family offices’ investments in the Middle East will rise by at least 50%.
MEIRA: ‘KSA through the IR looking glass’
John Gollifer, General Manager at the Middle East Investor Relations Association, looks ahead to MEIRA’s first annual conference in Riyadh in the July issue of IR Magazine. Explaining the Lewis Carroll inspired theme, he says: ‘Suffice to say, IR must look in the mirror’, adding that: ‘Given the quick growth in our Meira markets, notably since the global pandemic, you can argue we need more IROs – not only Arabic-speaking but international IROs.’ Gollifer’s conclusion is ‘what an opportunity’. FTI Consulting is the event’s sponsor.
Wolves of Wall Street retreat from Middle East SPACs
Wall Street banks, including Goldman Sachs, JP Morgan, and Bank of America, are rethinking their involvement in the listings of special purpose acquisition companies (SPACs) in the Middle East’s nascent market, according to Bloomberg. The withdraw comes as a result of new liability guidelines from the US Securities and Exchange Commission essentially exposing underwriters to greater liability risk and enforcing stricter measures on SPACs investing.
KSA’s capital markets | drawing a Line in the sand
Whilst unveiling 75-mile mirrored skyscraper The Line, the crown jewel in Prince Mohammed bin Salman’s $500bn NEOM project, he announced plans for it to IPO in 2024. “NEOM will add a trillion riyals to the Saudi stock market value. At least 1.2 trillion in the beginning and the overall will increase after project completion to exceed 5 trillion,” he was quoted as saying on state-owned al-Ekhbariya TV. Arab News reported the intention to list all companies owned by the Public Investment Fund (PIF) will helping Tadawul become one of the top three stock markets globally. We expect that this, along with Saudi’s TASI Islamic Index, its first Sharia-compliant index, will generate significant traffic on the Saudi stock exchange.
Saudi Arabia’s Tadawul to launch first Sharia-compliant index
Tadawul stock exchange launched TASI Islamic Index, its first Sharia-compliant index in response to the growing demand and interest from local and international investors for Islamic investment tools. The index will track the performance of Sharia-compliant companies listed on the Saudi stock exchange under the supervision of an independent Sharia Advisory Committee. This move comes after Tadawul launched single stock futures (SSFs) contracts on July 4. Read more in The National.
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