Crypto News: Abu Dhabi leads Gulf IPO rush

The boom in Middle East initial public offerings has continued into 2023 and the United Arab Emirates's capital is leading the way, hosting the world's biggest listing so far.

Abu Dhabi's main energy company raised $2.5 billion in the IPO of its gas business last week, the largest globally of 2023 and the first major deal in the region this year.

The share sale was 50 times oversubscribed with $124 billion of investor orders, a record for IPOs in the Middle East and North Africa, showing that demand for Gulf listings remains strong even as the region's stocks underperform other emerging markets.

Before the dust could settle on Adnoc Gas, Abu Dhabi's G42 announced the $495 million IPO of data analytics firm Presight AI Holding. And the emirate is expecting at least eight companies to list this year spanning technology and media to asset management, a senior government official said in an interview recently.

The activity firmly places Abu Dhabi at the forefront of the Middle East's IPO boom at the start of 2023, with no listings in Dubai so far and just an $11 million deal in Saudi Arabia. Before Adnoc Gas, the biggest IPO of the region in 2023 was Turkish transformer manufacturer Astor Enerji's 2.63 billion lira ($139 million) Istanbul float, data compiled by Bloomberg show.

While share sales plummeted in most major markets last year on the back of concerns over inflation and interest rate rises, they boomed in the Middle East thanks to surging energy prices and investor inflows. Just under $23 billion was raised through IPOs in the region, accounting for half of all the proceeds in Europe, the Middle East and Africa.

Abu Dhabi saw five listings last year raise about $5.4 billion, behind Dubai's $8.5 billion and Riyadh's $8.4 billion.

Governments in the Gulf region are listing assets to help diversify their economies away from fossil fuels and bring in more international investors. However the region's stock markets have given up many of last year's gains fueled by rising oil prices. The MSCI GCC Countries Index has fallen about 20% in the last 12 months.

Others in the pipeline for the UAE's capital include Peninsula Real Estate, which is planning an IPO in the first half of this year that could raise about $550 million, Bloomberg News reported.

Dubai's luxury property market is closing in on New York and London.

The Middle Eastern business hub racked up 219 sales of properties worth $10 million or more last year, according to Knight Frank. By comparison, New York registered 244 deals worth $10 million or more, Los Angeles, 225 transactions and London, 223. Dubai was also the fifth most active city for sales worth $25 million and above with 26 transactions.

"Dubai has arrived," said Faisal Durrani, head of Middle East research at Knight Frank.

Joe Biden's failure to stand up for democracy in Tunisia is shameful, but it's not too late for the US president to make amends, Bobby Ghosh writes for Bloomberg Opinion.

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The S-400 factor: Iran is seeking sophisticated new air-defense systems from Russia that Israeli officials believe will narrow the window for a potential strike on Tehran's nuclear program.

A Russian S-400 missile system. Photographer: Paul Gypteau/AFP

Also Read: Israel President Says Pact on Judicial Overhaul Closer Than Ever

Nuclear questions: The UN atomic watchdog said Iran still needs to explain how uranium particles enriched to just-below weapons grade came to be at one of its fuel facilities, walking back assertions by Tehran that the issue was settled.

Also Read: Iran Supreme Leader Calls Wave of School Poisonings 'Big Crime'

Crisis response: Egypt will raise the minimum wage for state employees from April, in a bid to offset the impact of an economic crisis that's seen inflation surge to its highest in five years. The announcement came shortly after officials hiked gasoline prices by around 10%, and unveiled plans to implement daylight-saving time starting in April.

Also Read: Egypt Sees Both Dollar, Pound as Options to Value State Assets

Turkish elections: Turkey's frazzled political opposition is looking to tap the popular mayors of Ankara and Istanbul as vice presidents — a last-ditch attempt to reunite after coming close to losing the bloc's second-largest member last week.

Post-quake reconstruction: Turkey is establishing a fund to rebuild areas devastated by last month's earthquakes, which would sit outside the regular budget and allow the government to act without having to abide by fiscal rules.

Also Read: Turkey Considering Prison Terms for Landlords Who Gouge on Rent

OPEC's future: The UAE has no plans to leave the oil producers' alliance, officials said on condition of anonymity, denying a Wall Street Journal report that sent oil prices tumbling.

Oil price hike: Saudi Arabia signaled it sees oil demand picking up in Asia and Europe by raising most prices for crude shipments to the regions.

'Shareek' diversification plan: Saudi Arabia outlined plans for $51 billion of investments by local companies including Aramco and mining giant Maaden under a government incentive program.

Aramco's expansion drive: The Saudi oil giant is considering an investment in a liquefied natural gas facility outside the kingdom, as global demand for the fuel soars. The state-owned behemoth also signed a letter of intent to potentially acquire a minority stake in Renault and Zhejiang Geely's planned combustion-engine venture.

$500 million deal?: Dubai-based private equity firm Fajr Capital is part of a consortium seeking to buy a majority stake in Aster DM Healthcare's Gulf business.

"Strategic market": Edmond de Rothschild, the privately-held Swiss investment firm, may hire up to 10 people each year in Dubai after obtaining a key license in the Middle Eastern business hub.

More intervention: Lebanon's central bank is taking a page from a playbook it's used before to try and douse the currency crisis, with a plan to price dollar sales at a weaker level than its own official exchange rate.

Dubai February PMI: March 9
Saudi Arabia fourth-quarter GDP: March 9
Egypt February CPI: March 9
Saudi Aramco results: March 12
Adnoc Gas trading debut: March 13

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Bloomberg Businessweek took a deep dive into the Dubai tourism scene — first with an article on why now is the best time to eat like a king in Dubai, along with some recommendations of new places you must try.

Umami eclair with beef prosciutto from Orfali Bros.

Businessweek also reviewed the new, ultra-luxury Atlantis the Royal hotel, including a warning about those pool cutouts in the lobby that guests have a nasty habit of falling into.

Sky Pool Villa terrace at Atlantis the Royal. Source: Brandon Barré

Meanwhile, Dubai also hosted some valuable assets. A group of six of Michael Jordan's game-worn sneakers made a stop at Sotheby's in the city's DIFC business district. See the video of the collection that's expected to fetch millions in a private sale. And if you missed the Dubai Yacht Show, take a look at the most eye-catching boats on display, including a new concept gigayacht that would be worth north of €300 million, an electric sailboat and debuts from UAE shipbuilder Gulf Craft. The booming tourism industry has been pouring money into the coffers of local businesses like Majid al Futaim, which posted a 50% increase in revenue per available room.