Friday 21 April 2023

Middle East markets expected to ride out global uncertainty

Middle East markets expected to ride out global uncertainty

Observers are optimistic that the Middle Eastern markets, which had a stellar year in 2022, will yield equally promising results in 2023, based on the larger inflow of investments and companies moving into the region.

In 2022, GCC markets had a 21 per cent share of the global IPO volume, as compared to only 2 per cent in 2021, with expectations that big names will be going public this year, following in the footsteps of Emirati companies ADNOC Gas and Al Ansari Exchange, which were repeatedly over-subscribed, reflecting high demand on investments in the region.

Since the beginning of 2023, the investment world has witnessed multiple shocks, leading to markets in an almost constant state of turbulence.

Market stakeholders, including brokers, traders and companies, have centered their primary focus on central banks, especially the Federal Bank, awaiting to see if interest rates are going to rise, and if so, if they will keep increasing. The banking crisis caught everyone by surprise, and the focus of observers shifted from expecting the rise of interest rates to anticipating rate cuts since the crisis started showing ripple effects in Europe with the collapse of Credit Suisse.

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