Under the title "Emirates Group: An Anticipated Giant in Dubai's Market.. Here Are Its Major Companies," the Al Arabiya website reported that as part of a new plan announced by Dubai to list 10 government and quasi-government companies on the Dubai Financial Market, a significant name stands out that could potentially become one of the largest IPOs in the market. This concerns the Emirates Group. Following announcements about "DEWA" and "SALK," and the news regarding a potential listing for "Tecom," Dubai is considering selling stakes in its flagship airline, Emirates, which has helped transform the city into a global trade hub. This coincides with the easing of pandemic restrictions and the recovery of the travel sector.
The chairman and chief executive of Emirates Group, Sheikh Ahmed bin Saeed Al Maktoum, stated that "Emirates and its subsidiaries may be listed on the Dubai market," as reported by Bloomberg. These statements come as the emirate intensifies its efforts to catch up with the IPO momentum in the Saudi and Abu Dhabi markets.
### Bright Prospects
Emirates is considered one of the most well-known assets in the emirate of Dubai. The airline was heavily impacted by the pandemic, leading to its first loss in decades due to a downturn in its core long-haul travel businesses. The government invested about $3.7 billion over the past year to support the airline in continuing its operations. However, with the tourism sector in the UAE strengthening due to increased vaccination rates and fewer COVID-19 infections, the outlook appears bright. Unlike many key hubs around the world, Dubai remained open, attracting thousands of visitors and events, including the aviation exhibition that began this week.
Emirates President Tim Clark stated last month that the airline aims to fully restore its network by mid-2022. Sheikh Ahmed bin Saeed mentioned on Monday that "Emirates may also consider listing its subsidiaries," which could include Dnata, a company involved in air freight, ground handling, catering, retail, and travel services. Revenues in that unit rose by 55% to $1 billion in the first half of the year, reversing a loss of $396 million during the same period last year to a profit of $23 million. Meanwhile, the main airline company in the group, Emirates, reported a net loss of $1.6 billion, less than half of what it lost the previous year, while revenues increased by 81%.
### The Largest Carrier in the Pandemic Year
Emirates Group is an international holding company for travel and tourism and is the parent company of Emirates Airlines, which operates a vast network of passenger and cargo services worldwide. Emirates was established in late 1984 and has become one of the largest airlines in the world, operating from its base at Dubai International Airport with a fleet of wide-body aircraft. Emirates is recognized for its leadership in in-flight entertainment, being the first airline to install video systems at all seats on its fleet, and it was named the largest global carrier in terms of international passenger traffic during the pandemic year, transporting 15.8 million passengers in 2020.
The group is wholly owned by the Government of Dubai and has developed a diverse portfolio that caters to a wide range of sectors in transport and tourism, providing commercial air transport for passengers and cargo, as well as postal transport, corporate catering, ground handling services, and wholesale and retail of consumer goods and food and beverages. The group also assisted in developing flydubai, a low-cost airline based in Dubai. Although flydubai is not part of Emirates Group, there is a partnership between them, with a shared network of 168 destinations.
### A Wide Range of Subsidiaries
In addition to Dnata - with its dnata Travel agency operating across the UAE, Saudi Arabia, Bahrain, Oman, Afghanistan, Iraq, and India, Gerry's dnata offering handling and cargo services at 7 airports in Pakistan, and GTA dnata providing ground handling and cargo services in Canada - the Emirates Group includes companies covering diverse aspects of the transport and tourism sectors, such as Arabian Adventures for organizing tours and safaris throughout the UAE, Emirates Holidays, which provides tailored packages for around 100 destinations, and Emirates Engineering, one of the most technologically advanced aircraft maintenance facilities in the world.
Emirates Executive offers exclusive private jet services, and marhaba provides a range of meet-and-greet services and lounges at airports worldwide. Additionally, Premier Inn hotels are a partnership with leading hotel brands in the UK, catering to the demand for affordable rooms in Dubai, alongside other companies in various fields, including training.
### A Boost for Dubai's Market
News of additional significant listings will help boost sentiment in Dubai's market, which has seen stock trading decline over recent years. Once the leading stock exchange in the UAE in terms of trading volume, it is now ranked second after Abu Dhabi. The Dubai market has seen only one public offering since 2017, along with a series of delistings that have weakened investor confidence. A series of announcements since the beginning of the month has helped increase the market operator's market value by 150% to around $5.6 billion, with the benchmark market index rising by nearly 14% in the same period. Dubai's focus is also on expanding beyond the public sector, as it seeks to revive trading in the market. IT company StarLink plans to go public early next year, indicating the government's goal of listing public sector companies encourages private sector involvement.
