A senior executive at Bank of America and Head of Capital Markets for Europe, the Middle East, and Africa, James Palmer, confirmed that "several companies in the Middle East are planning initial public offerings (IPOs) for 2024 instead of this year due to concerns about a global recession." However, the Middle East emerged as a bright spot for IPOs last year and has maintained this status, with several companies listed on the UAE and Saudi stock exchanges in the first half of the year.
James stated that "the outlook is encouraging although we do not expect a massive wave in the second half. Many transactions are focusing more on early or mid-next year, rather than the end of this year." He added, "More importantly, the market's view on when we reach the peak levels remains dynamically assessed and feeds into the state of uncertainty. This is a challenge for the market we need to navigate."
He noted that "some companies in the Middle East feel optimistic about the structural transformation in the region, namely the commitment to developing and enhancing capital markets, and the local entities' commitment to providing financial support."
