Many of the IPOs launched in Dubai this year were launched to revive the city’s trading chops. However, they are now feeling the pinch with the majority of the newly listed shares trading below their IPO price as the price of oil declines. The latest of which has been Taaleem Holdings – the private school operator which has seen its shares dip 13% after raising $204 million in its IPO.
After a strong year not just for Dubai and the UAE but for the Middle East itself, analysts seem to feel that the headwinds affecting Europe and the rest of the world will seem to seep into the GCC. Especially on the back of rising inflation and declining oil prices.
Why it matters
Analysts are still opting for the UAE as their top regional pick for investments. However, a decline in oil, resulting from mounting headwinds in both the US and China, is making the investment outlook more challenging. The UAE expects more offerings next year with requests from several companies, including ADNOC – which plans to sell a stake in its natural gas unit.