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Saturday, 2 September 2017

UAE’s IPO drought is likely to ease from this year | GulfNews.com

UAE’s IPO drought is likely to ease from this year | GulfNews.com:

"The IPO activity in the UAE has remained subdued for the past few years, which can be broadly attributed to two factors — firstly and the most important one is the lack of favourable market conditions, and secondly the unfriendly regulatory requirements and procedures. Historically, the UAE stock markets, which have had a relatively drier spell compared to Saudi Arabia, witnessed a total of 10 companies being listed on respective UAE bourses between 2010 and 2014. However, in the last two years, the region was confronted by the declining oil prices and heightened economic uncertainty, which had a significant impact on the IPO activity in the UAE. As a result, there have only been two new additions since 2015 as most of the prospective companies either decided to shelve or defer their IPO plans because of deteriorating market conditions and dismal performance of recent IPOs. The companies listed since 2010 were mostly quasi-government companies, which suggest that capital markets are still elusive of attracting private companies. Moreover, the UAE bourses do not reflect the dynamics of the economy, as the banking, real estate and construction sectors dominate the overall market capitalisation, which undermines other economic sectors, especially in light of UAE’s long term diversification strategy. Hence, there is a lack of peer comparison for private companies operating in other economic sectors, which might be another reason for the subdued IPO activity in the past few years."



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Saudi society is rigid, its youth restless. The prince’s reforms need to succeed | World news | The Guardian

Saudi society is rigid, its youth restless. The prince’s reforms need to succeed | World news | The Guardian:

"Over the past three years, as Saudi Arabia’s new heir to the throne was plotting his ascendancy, he surrounded himself with public accounts and private advisers who all drew the same conclusion – the kingdom itself was at serious risk if its people didn’t change their ways.

On every front, the house of Saud faced a struggle – that it would probably lose – to retain its grip on a country that was moving towards implosion. Culturally, socially and economically, Saudi Arabia needed an overhaul and Mohammed bin Salman, who sensationally ousted his uncle, Mohammed bin Nayef, as crown prince earlier this year, pinned both his startling rise and eventual legacy to the most comprehensive reform attempt that kingdom has yet seen.

An absolute monarchy with a bloated, inefficient public sector, a huge government payroll and a resistance to change was never going to be an easy target. Add to that a mindset of entitlement among many Saudi young people and low productivity, and the challenges seem close to insurmountable. Central to the young prince’s plan is unlocking wealth and giving its citizens a buy-in. As sweeteners, he has also thrown in cultural reforms, such as opening cinemas, promoting concerts and other enhancements to social life that many Saudis crave."



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The great Saudi sell-off: why bankers and lawyers are flocking to the Gulf | World news | The Guardian

The great Saudi sell-off: why bankers and lawyers are flocking to the Gulf | World news | The Guardian:

"Don’t even think about getting the Sunday morning flight from Dubai to Riyadh. The same applies to the Thursday afternoon slots going back. Both – and many in between – are booked solid by investment bankers, corporate lawyers, accountants, consultants and PR advisers who appreciate the weekend comforts of the UAE, but who know the big business is to being done in Saudi Arabia. A huge economic transformation is planned for the kingdom, and the fees on offer are well worth a few days of strawberry juice in the puritan luxury of a five-star hotel in the Saudi capital."



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Harvey Makes Landfall in Saudi Arabia - Bloomberg Gadfly

Harvey Makes Landfall in Saudi Arabia - Bloomberg Gadfly:

"Hurricane Harvey has devastated the Gulf Coast, and its impact is now spreading out to the rest of the U.S., chiefly at gas pumps.But America's resurgent role in the global energy trade means the ripples extend far beyond its own shores. One place they are lapping onto is Saudi Arabia.In theory, the de-facto leader of efforts by OPEC, Russia and other members of the so-called Vienna Group stands to gain from disruption at the nerve center of the shale boom that has helped to suppress oil prices. In practice, things are a bit more complicated."



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