Dubai has replaced five of seven members on its stock exchange’s board as the Middle East business hub works on plans to boost the emirate’s flagging bourse.
Deputy Ruler Maktoum bin Mohammed appointed Helal Saeed Al Marri as chairman of the board, replacing veteran Essa Kazim. Al Marri is a member of the Executive Council of Dubai and head of Dubai World Trade Centre Authority.
Dubai said earlier this week it plans to sell stakes in 10 state-owned companies in what may prove to be a test of confidence in a stock market dogged by falling volumes at a time when regional rivals are stepping up sales.
On Tuesday, it announced plans to sell shares in its main utility DEWA, valuing the firm at more than $25 billion in a deal that will probably be the emirate’s biggest listing.
The changes will be enough to inject momentum into the stock market, Ajit Joshi, a fund manager at Shuaa Capital, said in an interview with Bloomberg Television on Thursday. “These are all great steps. We have seen how market-making has done wonders in the Abu Dhabi market and we are confident that that will reflect in the Dubai market as well.”
The moves have already shored up the local bourse. Dubai’s benchmark index has jumped more than 9 percent this week, its best performance since 2014, while exchange operator DFM surged 56 percent.
Once the United Arab Emirates’ leading exchange by traded volume, Dubai’s bourse is now second to Abu Dhabi, which has had three IPOs this year. In contrast, Dubai has seen one listing since 2017, and a string of delistings that have dented investor confidence.
“The Dubai privatisation program can be an important catalyst for the DFM,” Tarek Fadlallah, head of Nomura Asset Management’s Middle East unit, said in a tweet. The execution (book-building, pricing, placement, liquidity) and governance framework will be critical given the poor IPO track record over recent years.”
IPO candidates in Dubai will likely include companies owned by Investment Corp. of Dubai, the state-controlled firm with about $300bn in assets, and Dubai Holding. Potential firms include Emirates Airline, Dubai Aerospace Enterprise, Dnata, Jumeirah Hotels & Resorts, Emirates National Oil Co., Meraas and Nakheel.
Board members:
- Abdulqader Obaid Ali, chairman of UAE Internal Audit Association
- Yuvraj Narayan, group CFO of DP World
- Wesam Lootah, CEO of Smart Dubai Government Establishment
- Abdulwahid Alulama, partner at White & Case
- Moaza Al Marri, communications and marketing expert
- Mohammed Humaid Al Mari, member of the UAE Accountants and Auditors Association
The board members who retained their positions: Moaza Al Marri and Mohammed Humaid Al Mari
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