Gulf stock markets add listings, but foreign investors still skeptical
A flurry of stock listings in Riyadh, Abu Dhabi and Dubai raise hopes of broadening the investor base.
“Investing in DEWA is an investment in Dubai's future,” Sheikh Mohammed bin Rashid al-Maktoum said. The ruler of Dubai described state-owned utility Dubai Electricity & Water Authority (DEWA) as a “key pillar” of the Gulf’s financial and business hub development.
The company provides water and electricity services to the emirate’s 3.4 million people.
DEWA’s listing on the Dubai Financial Market in the coming months is part of a plan to sell stakes in 10 state-owned companies, to cash in on regional momentum. Gulf stock markets are up about 33% in 2021, some of the world’s best performance, largely boosted by a rise in oil prices.
But a close look at the investor base reveals Gulf bourses are still a mostly closed loop, a niche market that takes a back seat in emerging market investing.
