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Dubai’s TECOM Draws Orders Worth $9.6Bln for IPO

A picture shows a view of the Dubai skyline, including Burj Khalifa the world's tallest building, in the United Arab Emirates, on June 20, 2022. (AFP)
A picture shows a view of the Dubai skyline, including Burj Khalifa the world's tallest building, in the United Arab Emirates, on June 20, 2022. (AFP)
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Dubai’s TECOM Draws Orders Worth $9.6Bln for IPO

A picture shows a view of the Dubai skyline, including Burj Khalifa the world's tallest building, in the United Arab Emirates, on June 20, 2022. (AFP)
A picture shows a view of the Dubai skyline, including Burj Khalifa the world's tallest building, in the United Arab Emirates, on June 20, 2022. (AFP)

Dubai business park operator TECOM Group said on Monday it drew orders worth $9.63 billion for its initial public offering, the latest Middle East listing to attract strong investor demand amid a boom in regional share sales.

It had previously announced setting the final offer price for its IPO at AED2.67 ($0.72) per share.

The Global Offering drew substantial demand from both the Qualified Institutional Offer and UAE Retail with total gross demand reaching AED35.4 billion, implying an oversubscription level of over 21 times in aggregate at the final price.

The UAE Retail Offer achieved an oversubscription level of almost 40 times in aggregate, making it the highest oversubscription multiple ever for IPOs on the Dubai Financial Market (DFM).

As a result of the extremely strong demand, the final offer price was set at the top of the price range and the company has raised AED1.7 billion ($462 million) through the IPO.

Malek al-Malek, Chairman of TECOM Group, said: “The tremendous demand we drew both locally and internationally for the TECOM Group IPO, especially amid challenging market conditions, is testament to the company’s appealing value proposition and growth prospects.”

He stressed that the investors’ high turnout is underpinned by their optimism toward Dubai’s economy and confidence in the Emirate’s capital markets.

As previously announced, the Global Offering comprised an offering of 625 million ordinary shares, representing 12.5% of TECOM Group’s issued share capital, all of which is expected to be listed on the DFM on or around July 5.

Upon listing the company, it will have an implied market capitalization of AED13.4 billion ($3.6 billion), and DHAM LLC will continue to own a majority 86.5% stake in the company (or 87.5% together with DHAM FZ-LLC).

TECOM houses more than 7,500 companies and 10 large business complexes including Dubai Internet City and Dubai Media City.

Dubai's deputy ruler, Sheikh Maktoum bin Mohammed, in November announced plans to take 10 government-linked companies public to boost stock market activity to three trillion dirhams (about $817 million).

Dubai Electricity & Water Authority’s (DEWA) $6.1 billion share sale in April was the first, and a float of the city’s road-toll system, Salik, is set to follow after the summer.

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Egypt’s Tourism Minister: Stability, Trust Are Driving Sector Growth

Sherif Fathy, Egypt’s Minister of Tourism and Antiquities, at the Egyptian pavilion during the Arabian Travel Market in Dubai (Asharq Al-Awsat)
Sherif Fathy, Egypt’s Minister of Tourism and Antiquities, at the Egyptian pavilion during the Arabian Travel Market in Dubai (Asharq Al-Awsat)
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Egypt’s Tourism Minister: Stability, Trust Are Driving Sector Growth

Sherif Fathy, Egypt’s Minister of Tourism and Antiquities, at the Egyptian pavilion during the Arabian Travel Market in Dubai (Asharq Al-Awsat)
Sherif Fathy, Egypt’s Minister of Tourism and Antiquities, at the Egyptian pavilion during the Arabian Travel Market in Dubai (Asharq Al-Awsat)

Egypt’s Minister of Tourism and Antiquities, Sherif Fathy, has underscored that political stability and decades of built-up trust among international travelers are critical to the continued growth of Egypt’s tourism sector, even amid regional geopolitical challenges.

Speaking to Asharq Al-Awsat on the sidelines of the Arabian Travel Market in Dubai, Fathy said Egypt has consistently demonstrated resilience in the face of crises, recovering rapidly and reinforcing its status as a reliable destination.

“This isn’t coincidental,” he said. “It’s the outcome of long-term institutional planning led by the state, supported by strategic marketing and growing investment in infrastructure and hotel services.”

Fathy acknowledged intensifying competition among regional destinations but described it as both “healthy and necessary,” adding that it does not preclude deeper collaboration. He revealed recent talks with Bahrain’s Minister of Tourism that laid the groundwork for joint tourism programs, allowing Arab and foreign travelers to explore multiple destinations through a single package.

“We’re also collaborating with Saudi Arabia, Qatar, and Jordan,” he said. “We believe a coordinated Arab approach can offer travelers a richer, more integrated experience, with each country contributing its strengths.”

While such initiatives may not immediately deliver major numbers, he said they elevate the overall value of the visitor experience and expand market potential over time.

The minister pointed to Egypt’s diverse tourism portfolio as a unique competitive advantage. “We offer a distinctive product that blends Pharaonic heritage, Coptic and Islamic antiquities, beach and desert tourism, and luxury resort destinations like Sharm El-Sheikh, Hurghada, and the North Coast,” he said.

He also highlighted the ministry’s adoption of cutting-edge digital marketing tools, including AI-driven campaigns aimed at European markets that garnered over 100 million views within days. This, he said, boosted global awareness of Egypt as a safe, diverse destination.

Fathy emphasized the government’s focus on empowering the private sector, which he described as the engine behind tourism growth. “We don’t organize tourist itineraries - we create a competitive environment and raise service standards,” he noted.

He pointed to steady improvements in service quality across airports, hotels, and attractions, and rejected the idea that overcrowding poses a significant challenge, particularly when compared to other popular destinations.

Looking ahead, Fathy projected that Egypt could see an 8% increase in tourist arrivals in 2025, building on a strong first quarter that saw year-on-year growth of 25%. He said maintaining stability and global purchasing power would be key to sustaining momentum.