Etihad Airways, Dubizzle, and Five Holdings Among Likely Entrants to Capital Markets
As the UAE’s financial markets close 2024 with $6 billion raised through seven IPOs, analysts anticipate another robust year ahead, with some high-profile companies expected to go public in 2025. Firms like Etihad Airways, Dubizzle, Five Holdings, and Alpha Data are seen as potential candidates for listing, reflecting the sustained momentum in the country’s IPO landscape.
2024: A Year in Review
This year saw seven UAE companies, including Talabat, Lulu Retail, and Spinneys, raising significant funds through initial public offerings. Talabat and Lulu alone accounted for $3.7 billion, making up over half the total proceeds. While 2024’s tally mirrored the $6 billion raised in 2023, the number of IPOs fell slightly from eight to seven.
Despite the slowdown in the number of listings, market performance remained strong. Century Financial’s Chief Investment Officer, Vijay Valecha, attributed the consistency to a bullish IPO season that began in 2022. That year set a remarkable benchmark with 11 IPOs generating $13 billion, a figure unmatched since.
IPO Prospects for 2025
The UAE IPO pipeline for 2025 appears promising, with several marquee names lining up for potential listings:
- Etihad Airways: The national carrier, under ADQ’s ownership, is expected to raise up to $1 billion. If successful, Etihad would become the Gulf region’s first airline to go public.
- Dubizzle: The UAE’s largest online classifieds platform, valued as a unicorn in 2022, could seek an IPO worth $500 million to $1 billion, aligning with the region’s focus on tech-driven listings.
- Five Holdings: This luxury hospitality operator might pursue a substantial $2 billion IPO, capitalizing on the booming travel and tourism sector.
- Alpha Data: A leading IT firm, Alpha Data’s IPO is anticipated to be valued at around $200 million, reflecting growing interest in the UAE’s tech industry.
Why 2025 Could Be a Milestone Year
The upcoming IPOs could collectively generate between $3.7 billion and $4.2 billion, with additional listings possibly raising this figure. According to George Pavel of Naga.com Middle East, the UAE’s robust GDP growth projections and reduced geopolitical tensions create an ideal environment for companies to go public.
Furthermore, sectors like artificial intelligence (AI), health tech, and fintech are expected to thrive as the UAE continues its push to establish itself as a global technology hub. State-owned enterprises in energy and infrastructure may also join the IPO wave, diversifying investor opportunities.
Investor Sentiment and Market Strength
The UAE’s IPO market has consistently delivered for investors. Over the past three years, 61% of IPOs on the Dubai Financial Market (DFM) and Abu Dhabi Securities Exchange (ADX) are trading in positive territory. Among 2024’s new listings, companies like NMDC Energy and Spinneys have already posted gains.
Valecha emphasized that the UAE’s political stability, economic diversification, and thriving capital markets have made it an attractive destination for retail and foreign investors alike. The ADX and DFM indexes have seen impressive growth, with the ADSMI Index rising 83% over five years and the DFMGI Index returning 57% over three years.
Outlook for the Future
With a steady pipeline of potential listings and a strong economic foundation, the UAE capital markets are well-positioned for another stellar year. Investors are likely to benefit from the momentum built over recent years, making 2025 an exciting year for the region’s financial markets.
As Valecha aptly noted, “Upcoming IPOs in 2025 are set to ride the wave of the UAE’s dynamic and resilient capital market environment.”
