First Saudi IPO Since Tariff Turmoil Draws $20 Billion in Orders - Bloomberg
Saudi packaging manufacturer United Carton Industries Co. drew more than $20 billion in orders for its initial public offering, a sign that investor appetite for Middle Eastern listings continues despite tariff-induced market turmoil.
The firm is set to raise 600 million riyals ($160 million) via the first-time share sale, according to a statement.
The final price of the offering was set at 50 riyals per share, the top end of a marketed range, which implies a market capitalization of around 2 billion riyals. The company had demand for all shares within the first hours of opening subscriptions, Bloomberg reported last month.
The Middle East has been an IPO hotspot in recent years, even as global volumes faltered. Bankers focused on the region have said they’ve not seen a significant dent to their deal pipelines because of US tariffs, but have warned that lower oil prices pose a risk to growth.
United Carton is one of several regional firms pushing ahead with plans to list despite the turmoil. Saudi hospital operator Specialized Medical Co. also kicked off a Riyadh listing on Sunday, while low-cost carrier Flynas and tech firm Ejada Systems Ltd. are also planning to launch deals soon, Bloomberg News has reported.
In Dubai, an investment conglomerate controlled by the emirate’s ruler unveiled plans on Monday to list a residential property portfolio, to harness the city’s property boom.
United Carton’s 2024 revenues amounted to 1.3 billion riyals, with the firm holding as much as 40% of the Saudi corrugated carton product market, according to its IPO prospectus.
Al Rajhi Capital is financial adviser and lead manager on the deal.
Monday, 5 May 2025
Watch #AbuDhabi Wealth Fund ADQ's Strategic Priorities - Bloomberg #UAE video
Watch Abu Dhabi Wealth Fund ADQ's Strategic Priorities - Bloomberg
ADQ is outpacing many of its peers, with a focus on critical infrastructure and supply chains. The wealth fund is also exploring investments in logistics, pharmaceuticals and food security, Nicolas Parasie tells Joumanna Bercetche on Horizons Middle East and Africa. (Source: Bloomberg)
ADQ is outpacing many of its peers, with a focus on critical infrastructure and supply chains. The wealth fund is also exploring investments in logistics, pharmaceuticals and food security, Nicolas Parasie tells Joumanna Bercetche on Horizons Middle East and Africa. (Source: Bloomberg)
#UAE non-oil business grows steadily in April as hiring speeds up, PMI shows | Reuters
UAE non-oil business grows steadily in April as hiring speeds up, PMI shows | Reuters
Growth in the UAE's non-oil private sector held steady in April, while employment rose at the fastest pace in 11 months as firms sought to reduce workloads and support new business growth, a survey showed on Monday.
The seasonally adjusted S&P Global UAE Purchasing Managers' Index (PMI) stayed at 54.0 in April, unchanged from March, but firmly above the 50.0 level denoting growth.
New order growth quickened slightly from the previous month, with the new orders subindex rising to 56.9 in April from 56.3 in March, partly driven by the strongest upturn in international demand in five months.
Despite this, business activity growth slowed to a seven-month low, with firms facing challenges in completing existing work due to payment delays.
The subindex for employment registered a reading of 51.4, the highest in almost a year.
David Owen, senior economist at S&P Global Market Intelligence said firms added staff mainly to reduce backlogs, which, although still rising sharply, did so at the slowest rate in six months.
"That said, employment growth was still modest overall, adding to suggestions that some firms may be struggling to recruit," Owen said.
Looking ahead, firms remained optimistic, expecting that a strong sales pipeline and resilient market conditions would support future activity, with confidence at its highest level in 2025 so far.
Dubai's non-oil private sector slowed again in April, with the headline PMI falling to 52.9 from 53.2 in March. Firms reported the slowest pace of growth in new business growth since October, and confidence about future activity levels weakened.
Growth in the UAE's non-oil private sector held steady in April, while employment rose at the fastest pace in 11 months as firms sought to reduce workloads and support new business growth, a survey showed on Monday.
The seasonally adjusted S&P Global UAE Purchasing Managers' Index (PMI) stayed at 54.0 in April, unchanged from March, but firmly above the 50.0 level denoting growth.
New order growth quickened slightly from the previous month, with the new orders subindex rising to 56.9 in April from 56.3 in March, partly driven by the strongest upturn in international demand in five months.
Despite this, business activity growth slowed to a seven-month low, with firms facing challenges in completing existing work due to payment delays.
The subindex for employment registered a reading of 51.4, the highest in almost a year.
David Owen, senior economist at S&P Global Market Intelligence said firms added staff mainly to reduce backlogs, which, although still rising sharply, did so at the slowest rate in six months.
"That said, employment growth was still modest overall, adding to suggestions that some firms may be struggling to recruit," Owen said.
Looking ahead, firms remained optimistic, expecting that a strong sales pipeline and resilient market conditions would support future activity, with confidence at its highest level in 2025 so far.
Dubai's non-oil private sector slowed again in April, with the headline PMI falling to 52.9 from 53.2 in March. Firms reported the slowest pace of growth in new business growth since October, and confidence about future activity levels weakened.
#SaudiArabia's non-oil business sector growth eases in April, PMI shows | Reuters
Saudi Arabia's non-oil business sector growth eases in April, PMI shows | Reuters
Saudi Arabia's non-oil private sector activity expansion slowed in April as growth in new orders decelerated sharply, even as hiring rates reached their joint-fastest pace in more than a decade, a survey showed on Monday.
The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers' Index (PMI) slid to 55.6 in April, the lowest reading since last August, from 58.1 in March, while remaining firmly in growth territory.
The slowdown in new order growth reflected global economic uncertainties and competitive pressures, with the new order subindex slipping for the third consecutive month to 58.6 in April from 63.2 in March.
"While output growth remains robust, it is somewhat tempered by global economic uncertainties and competitive pressures affecting client spending," Naif Al-Ghaith, Riyad Bank's chief economist said.
"Nonetheless, employment figures continue to climb, indicating a sustained growth trend since last May."
The increase in employment was driven by rising sales and business activity, with firms expanding staffing capacity to meet demand.
But the degree of business optimism remained weaker than the long-run survey average, the survey showed.
Saudi Arabia's economy grew 2.7% in the first quarter, supported by activity in the non-oil sector as the kingdom pushes ahead with diversifying away from hydrocarbons.
The state's statistics authority has updated and expanded its data collection to increase the non-oil sector weighting to better align with international standards and data quality.
Saudi Arabia's non-oil private sector activity expansion slowed in April as growth in new orders decelerated sharply, even as hiring rates reached their joint-fastest pace in more than a decade, a survey showed on Monday.
The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers' Index (PMI) slid to 55.6 in April, the lowest reading since last August, from 58.1 in March, while remaining firmly in growth territory.
The slowdown in new order growth reflected global economic uncertainties and competitive pressures, with the new order subindex slipping for the third consecutive month to 58.6 in April from 63.2 in March.
"While output growth remains robust, it is somewhat tempered by global economic uncertainties and competitive pressures affecting client spending," Naif Al-Ghaith, Riyad Bank's chief economist said.
"Nonetheless, employment figures continue to climb, indicating a sustained growth trend since last May."
The increase in employment was driven by rising sales and business activity, with firms expanding staffing capacity to meet demand.
But the degree of business optimism remained weaker than the long-run survey average, the survey showed.
Saudi Arabia's economy grew 2.7% in the first quarter, supported by activity in the non-oil sector as the kingdom pushes ahead with diversifying away from hydrocarbons.
The state's statistics authority has updated and expanded its data collection to increase the non-oil sector weighting to better align with international standards and data quality.
#Dubai Holding kicks off residential REIT IPO, boosted by property market momentum | Reuters
Dubai Holding kicks off residential REIT IPO, boosted by property market momentum | Reuters
Dubai Holding, an investment conglomerate owned by the emirate's ruler, plans to list a 12.5% stake in a residential real estate investment trust (REIT), it said on Monday, amid a booming property sector fuelled by foreign investment.
DHAM Investments, a Dubai Holding subsidiary that is selling the stake, is seeking up to $500 million from the offering, two sources with knowledge of the matter told Reuters. Dubai Holding declined to comment.
The company plans to offer 1.63 billion units in leasing-focused Dubai Residential REIT, which manages 35,700 residential properties, according to a statement, including in premium communities like City Walk and Bluewaters.
Dubai, the Gulf region's business and tourism hub, has seen its property market swell since the COVID-19 pandemic, with a sharp rise in prices fuelled by an influx of foreign investors and government residency reforms.
It is a big turnaround from a crushing property crash in 2009 which required a $20 billion Abu Dhabi-led bailout. The government has since taken measures to deleverage and strengthen the sector, and consolidated major state-owned real estate developers.
Malek Al Malek, CEO of Dubai Holding Asset Management, said he was positive about the outlook for the emirate's property market, despite market volatility and uncertainty over the impact of U.S. tariffs on the global economy.
"We see less issues coming from the new supply that is actually pumped into the market," he said on a media call, highlighting Dubai's growing population.
"The REIT...is actually a defensive investment vehicle. So with this volatility, investors usually look for some of these very clear government stories that can yield outcomes," Malek said.
SLOWDOWN
The global IPO market has suffered this year amid rising geopolitical tensions and stock market volatility, and the Gulf region has not been immune, despite a strong pipeline of potential listings.
Dubai Residential REIT would be Dubai's first listing since Talabat (TALABAT.DU), opens new tab in December, and only the second in the UAE this year.
Owned by Mohammed bin Rashid Al Maktoum, Dubai Holding is one of the largest landowners and real estate developers in the United Arab Emirates, comprises some of the emirate's flagship residential, commercial, retail, and tourism assets, including Nakheel, developer of its palm-shaped islands.
Dubai Residential REIT is expected to be the six-member Gulf Cooperation Council's largest listed REIT, with a gross asset value of $5.9 billion.
Trading is expected to begin on or around May 28. The company said it aims to distribute a dividend equal to at least 80% of its profit for the 2026 financial year.
Citi, Emirates NBD and Morgan Stanley are joint global coordinators and joint bookrunners for the IPO.
Dubai Holding, an investment conglomerate owned by the emirate's ruler, plans to list a 12.5% stake in a residential real estate investment trust (REIT), it said on Monday, amid a booming property sector fuelled by foreign investment.
DHAM Investments, a Dubai Holding subsidiary that is selling the stake, is seeking up to $500 million from the offering, two sources with knowledge of the matter told Reuters. Dubai Holding declined to comment.
The company plans to offer 1.63 billion units in leasing-focused Dubai Residential REIT, which manages 35,700 residential properties, according to a statement, including in premium communities like City Walk and Bluewaters.
Dubai, the Gulf region's business and tourism hub, has seen its property market swell since the COVID-19 pandemic, with a sharp rise in prices fuelled by an influx of foreign investors and government residency reforms.
It is a big turnaround from a crushing property crash in 2009 which required a $20 billion Abu Dhabi-led bailout. The government has since taken measures to deleverage and strengthen the sector, and consolidated major state-owned real estate developers.
Malek Al Malek, CEO of Dubai Holding Asset Management, said he was positive about the outlook for the emirate's property market, despite market volatility and uncertainty over the impact of U.S. tariffs on the global economy.
"We see less issues coming from the new supply that is actually pumped into the market," he said on a media call, highlighting Dubai's growing population.
"The REIT...is actually a defensive investment vehicle. So with this volatility, investors usually look for some of these very clear government stories that can yield outcomes," Malek said.
SLOWDOWN
The global IPO market has suffered this year amid rising geopolitical tensions and stock market volatility, and the Gulf region has not been immune, despite a strong pipeline of potential listings.
Dubai Residential REIT would be Dubai's first listing since Talabat (TALABAT.DU), opens new tab in December, and only the second in the UAE this year.
Owned by Mohammed bin Rashid Al Maktoum, Dubai Holding is one of the largest landowners and real estate developers in the United Arab Emirates, comprises some of the emirate's flagship residential, commercial, retail, and tourism assets, including Nakheel, developer of its palm-shaped islands.
Dubai Residential REIT is expected to be the six-member Gulf Cooperation Council's largest listed REIT, with a gross asset value of $5.9 billion.
Trading is expected to begin on or around May 28. The company said it aims to distribute a dividend equal to at least 80% of its profit for the 2026 financial year.
Citi, Emirates NBD and Morgan Stanley are joint global coordinators and joint bookrunners for the IPO.
Most Gulf markets ease on falling oil prices | Reuters
Most Gulf markets ease on falling oil prices | Reuters
Most stock markets in the Gulf ended lower on Monday, pressured by falling oil prices and investor caution ahead of developments in U.S.-China trade relations.
Oil prices - a catalyst for the Gulf's financial markets - fell more than 1% on Monday after OPEC+ decided over the weekend to further speed up oil output hikes, spurring concerns about more supply coming into a market clouded by an uncertain demand outlook.
The group could fully unwind its voluntary cuts by the end of October if members do not improve compliance with their production quotas, OPEC+ sources told Reuters.
The Qatari index (.QSI), opens new tab dropped 0.4%, hit by a 0.9% fall in Qatar Islamic Bank (QISB.QA), opens new tab and a 1% decrease in petrochemical maker Industries Qatar (IQCD.QA), opens new tab.
In Abu Dhabi, the index (.FTFADGI), opens new tab eased 0.1%.
Saudi Arabia's benchmark index (.TASI), opens new tab reversed early losses to close 0.1% higher, helped by a 6.5% rise in Saudi Arabian Mining Company (1211.SE), opens new tab.
Dubai's main share index (.DFMGI), opens new tab advanced 1%, led by a 3.1% jump in top lender Emirates NBD (ENBD.DU), opens new tab and a 6.9% increase in Commercial Bank of Dubai (CBD.DU), opens new tab.
There is potential for the Dubai market to continue its positive trajectory, bolstered by strong earnings and robust economic fundamentals, highlighted by steady growth in the non-oil private sector during April and employment rising at its fastest pace in eleven months, said Joseph Dahrieh, Managing Principal at Tickmill.
Trump on Sunday said the U.S. was meeting with many countries, including China, on trade deals, and his main priority with China was to secure a fair trade deal.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab dropped 0.4%, weighed down by a 2.7% slide in Egypt Aluminum Company (EGAL.CA), opens new tab, despite reporting a rise in nine-month profit.
Most stock markets in the Gulf ended lower on Monday, pressured by falling oil prices and investor caution ahead of developments in U.S.-China trade relations.
Oil prices - a catalyst for the Gulf's financial markets - fell more than 1% on Monday after OPEC+ decided over the weekend to further speed up oil output hikes, spurring concerns about more supply coming into a market clouded by an uncertain demand outlook.
The group could fully unwind its voluntary cuts by the end of October if members do not improve compliance with their production quotas, OPEC+ sources told Reuters.
The Qatari index (.QSI), opens new tab dropped 0.4%, hit by a 0.9% fall in Qatar Islamic Bank (QISB.QA), opens new tab and a 1% decrease in petrochemical maker Industries Qatar (IQCD.QA), opens new tab.
In Abu Dhabi, the index (.FTFADGI), opens new tab eased 0.1%.
Saudi Arabia's benchmark index (.TASI), opens new tab reversed early losses to close 0.1% higher, helped by a 6.5% rise in Saudi Arabian Mining Company (1211.SE), opens new tab.
Dubai's main share index (.DFMGI), opens new tab advanced 1%, led by a 3.1% jump in top lender Emirates NBD (ENBD.DU), opens new tab and a 6.9% increase in Commercial Bank of Dubai (CBD.DU), opens new tab.
There is potential for the Dubai market to continue its positive trajectory, bolstered by strong earnings and robust economic fundamentals, highlighted by steady growth in the non-oil private sector during April and employment rising at its fastest pace in eleven months, said Joseph Dahrieh, Managing Principal at Tickmill.
Trump on Sunday said the U.S. was meeting with many countries, including China, on trade deals, and his main priority with China was to secure a fair trade deal.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab dropped 0.4%, weighed down by a 2.7% slide in Egypt Aluminum Company (EGAL.CA), opens new tab, despite reporting a rise in nine-month profit.
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