#Saudi stocks gain on US rate cut bets; #Qatar falls | Reuters

Saudi stocks gain on US rate cut bets; Qatar falls | Reuters

Saudi Arabia's stock market ended higher on Sunday as investors raised their bets on the prospect of a U.S. interest rate cut this month after U.S. payrolls data showed strong job growth in November, although the Qatari index retreated.

Nonfarm payrolls increased by 227,000 jobs last month after increasing by an upwardly revised 36,000 in October, in a month hit by hurricanes and strikes. Economists polled by Reuters had forecast payrolls accelerating by 200,000 jobs.

Traders now see an 87% chance of a 25-basis-point cut at the Federal Reserve's December meeting, versus a 72% chance before the payrolls data. FEDWATCH

The Fed's decisions significantly impact the Gulf region's monetary policy, as most currencies in the region, including Saudi Arabia's, are pegged to the U.S. dollar.

Saudi Arabia's benchmark index (.TASI), opens new tab edged 0.2% higher, helped by a 2.3% rise in aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab.

The country's economy grew 2.8% in the third quarter from the same period a year earlier, supported by an increase in non-oil activity, government data showed on Sunday.

In Qatar, the index (.QSI), opens new tab eased 0.3%, hit by a 1.9% fall in the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab.

Meanwhile, Qatar - the world's largest liquefied natural gas (LNG) producer - has no concerns about U.S. President-elect Donald Trump's promise to lift a cap on LNG exports, Qatar's Energy Minister Saad al-Kaabi said on Saturday, adding his country would cope with any competition.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab gained 0.7%, led by a 4.9% jump in Telecom Egypt (ETEL.CA), opens new tab.

Inflation in Egypt is forecast to have eased to 26.4% in November as food prices cooled, according to a poll released on Sunday.

#Dubai’s Talabat (DHER) IPO Solidifies Stock Exchange’s Turnaround - Bloomberg #UAE

Dubai’s Talabat (DHER) IPO Solidifies Stock Exchange’s Turnaround - Bloomberg

German food delivery giant Delivery Hero SE’s Middle Eastern unit is set to start trading in Dubai next week, solidifying a years-long turnaround for the city’s bourse.

Talabat’s $2 billion initial public offering, the largest in the Middle East this year and the biggest technology listing globally, could also help kickstart a new chapter in the emirate’s push for private listings.

“Talabat is definitely not a one-off,” according to Prasad Chari, group head of equity capital markets at Emirates NBD, which helped lead the IPO. The bank is in “active discussions” with several issuers and sponsors globally who are considering Dubai’s bourse for a potential listing, Chari said.

Emirates NBD has been among the leading advisers on new share sales in Dubai since the city embarked on an IPO push towards the end of 2021. The government’s privatization program has since raised more than $8 billion and the new additions have helped almost double the total market capitalization of stocks listed on the bourse.

Combined with a similar flurry of deals in neighboring Abu Dhabi, the United Arab Emirates as a whole is set to be the busiest venue for listings in the broader Europe, Middle East and Africa region for the third year in a row, according to data compiled by Bloomberg.

For Dubai, that’s a reversal from just a few short years ago.

Back in 2021, new share sales had all but dried up and a string of delistings further dented investor confidence. Meantime, Abu Dhabi and Riyadh were well into their privatization drives that drew in billions of dollars and transformed the region into a hotspot for IPOs.

Dubai’s fortunes started to change that November, when the deputy ruler unveiled plans to list 10 state-owned companies. At the same time, the stock exchange saw a sweeping overhaul of its board and the city announced a raft of initiatives to encourage private firms to go public.

Those moves coincided with a post-pandemic boom in Dubai’s economy, which was bolstered by the World Expo and looser travel restrictions that helped revive the tourism industry. An influx of expatriates from around the world has since boosted that recovery.

All of that has meant a number of Dubai IPOs have seen stellar performances, led by firms tied to the city’s economy. Shares in toll operator Salik Co. and a public parking business have more than doubled from their offer prices.

Talabat’s debut will be closely monitored by other firms, including the operator of classifieds website Dubizzle, the owner of shisha brand Al Fakher and hotel operator FIVE Holdings, who’re all considering share sales.

It could also be seen as a gauge for government-owned enterprises that are now preparing to list.

A few years after a string of real estate delistings amid a sputtering property market, the government is looking to cash in on the rebound — Dubai Holding is considering bundling two property portfolios into real estate investment trusts and listing them, Bloomberg News has reported.

Secondary sell-downs are also expected to follow the IPO wave, according to ENBD’s Chari, adding further liquidity to the exchange.

IPOs Have Helped Drive Dubai Bourse's Turnaround

The benchmark Dubai Financial Market General Index has risen nearly 20% this year, far outperforming peers in Abu Dhabi and Saudi Arabia.

But as stocks in the city continue to trade near 2014 highs, that also means pricier valuations. Analysts have previously cautioned that the index could potentially be “more sensitive to any setbacks than further good news.”

“A key risk for the Dubai economy is softer global growth, which would reduce demand for key external facing service sectors,” said Monica Malik, chief economist at Abu Dhabi Commercial Bank. “However, the investment plans should provide support to the economy. Dubai’s fiscal position has also seen a marked strengthening.”