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Dubai Advances in Doubling Financial Market in Wake of DEWA, TECOM’s Successful IPOs

Dubai aspires to benefit from the success of the DEWA and TECOM’s IPOs by listing more companies and attracting international capital. (AFP)
Dubai aspires to benefit from the success of the DEWA and TECOM’s IPOs by listing more companies and attracting international capital. (AFP)
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Dubai Advances in Doubling Financial Market in Wake of DEWA, TECOM’s Successful IPOs

Dubai aspires to benefit from the success of the DEWA and TECOM’s IPOs by listing more companies and attracting international capital. (AFP)
Dubai aspires to benefit from the success of the DEWA and TECOM’s IPOs by listing more companies and attracting international capital. (AFP)

Dubai prepares to list more government and semi-government companies on the Dubai Financial Market (DFM).

This decision is driven by the great success achieved by listing the Dubai Electricity and Water Authority (DEWA) in April, as well as the successful IPO of TECOM Group, a subsidiary of Dubai Holding, and the high turnout by investors to subscribe to the group's shares, in particular, and the IPO of Dubai companies and institutions, in general.

The listing of DEWA and TECOM raised about AED24 billion ($6.5 billion), while they drew orders worth almost AED350 billion ($95.2 billion).

These figures reflect the huge success and the confidence in Dubai’s institutions and companies that seek through their strategies to upgrade the capital markets and increase their ability to attract investors.

Ruler of Dubai Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, has recently issued a law to establish road toll operator “Salik”' as a Public Joint Stock Company (PJSC).

This enables listing some of its shares in the DFM and is considered a major step as part of Dubai government’s strategy to enhance and develop the market’s performance by listing a number of companies in the future.

Salik is part of the Roads and Transport Authority (RTA) in Dubai. The road toll system was launched in 2007 by the RTA to ease traffic congestion on the Sheikh Zayed highway and shore up state revenues.

Salik has eight toll gates and three million registered vehicles, out of which 1.8 million are registered in Dubai, according to the Dubai Media office.

The upcoming period is expected to witness more listings on the DFM, which would enhance its position and attractiveness to investors.

This comes in line with Sheikh Mohammed’s vision to achieve an economic and development renaissance in Dubai in particular, and the UAE in general, and to acquire a diversified, sustainable, more competitive and flexible economy based on knowledge and innovation.

A report on Wednesday said the great success achieved in TECOM’s IPO reflects the global investors’ great confidence in Dubai’s economy and its major institutions and infrastructure.

TECOM’s Global Offering drew substantial demand from both the Qualified Institutional Offer and UAE Retail with total gross demand reaching AED35.4 billion ($9.6 billion), implying an oversubscription level of over 21 times in aggregate at the final price.

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

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 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.

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

In this context, DEWA attracted in April AED315 billion ($85.7 billion) of demand for the IPO, with buyers including sovereign wealth funds, private fund and 65,000 individual investors.

DEWA said in its prospectus the 18% share sale by the Dubai government was aimed at boosting trading liquidity in the stock market and raising its own profile with international investors.

The shares began trading on the DFM on April 12, with DEWA the largest company on the bourse with a market capitalization of AED124 billion ($33.8 billion).

Demand for DEWA’s IPO has been strong, prompting it to first raise the size of the institutional offer and then boosting the retail portion by almost three times on Saturday.

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).

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Business

Higher Foreign Ownership Cap Could Open New Chapter for Saudi Market

Two investors monitor shares on a screen in the Saudi market. (AFP)
Two investors monitor shares on a screen in the Saudi market. (AFP)
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Higher Foreign Ownership Cap Could Open New Chapter for Saudi Market

Two investors monitor shares on a screen in the Saudi market. (AFP)
Two investors monitor shares on a screen in the Saudi market. (AFP)

Saudi Arabia’s stock market is approaching another milestone in its opening to international investors, as it eases foreign ownership restrictions on listed companies. The move could pave the way for billions of dollars in new inflows while raising questions over the market’s ability to translate regulatory opening into sustained investor demand.

Morgan Stanley estimates that increasing the foreign ownership ceiling from 49% to 75% could attract about $4.3 billion in index-tracking inflows, rising to $7.4 billion if the cap is removed entirely.

The estimates followed the appointment of Mazen al-Sudairi as chairman of the Capital Market Authority, reinforcing expectations that further measures could be introduced to increase the Saudi market’s appeal and depth and draw additional foreign capital.

Saudi stock market data, however, show that overseas holdings are not necessarily distributed according to company size or market capitalization. Rasan leads with foreign ownership of about 38.87%, followed by East Pipes Integrated Company at 30.05%, Al-Babtain Power and Telecommunication at 26.42% and Edarat Communication and Information Technology at 24.22%.

The companies with the highest foreign ownership also include Mobily at 23.19%, Jarir Marketing at 21.95%, Saudi National Bank at 18.92%, Tawuniya at 18.88% and eXtra at 17.90%.

The disparities raise questions over whether a higher ownership ceiling alone would be enough to strengthen international demand for Saudi stocks, or whether additional inflows will depend more heavily on listed companies’ appeal, valuations and financial performance, alongside any forthcoming regulatory changes.

Billions tied to indexes

Financial markets analyst Abdullah al-Hamed said that expanding the foreign ownership limit would boost international capital flows through two main channels.

The first involves passively managed funds that track global indexes such as S&P and FTSE. Allowing foreigners to own up to 75% or 100% could increase Saudi Arabia’s potential weighting in those indexes, generating flows in line with benchmark weights regardless of the investment appeal of the individual stocks themselves.

The second involves actively managed funds, which may take longer to enter because their decisions depend on overall market conditions and corporate performance rather than index weightings.

Al-Hamed expects the measure to have a positive effect, with inflows potentially reaching about $7 billion in the best-case scenario.

Decisions by international investors to increase their Saudi equity holdings also depend on the performance of the domestic economy, driven by Saudi Vision 2030 initiatives, economic diversification and the expanding role of the private sector, as well as valuations, earnings growth and companies’ future prospects.

Al-Hamed added that steps by regulators, particularly the Capital Market Authority and Ministry of Investment, to facilitate investor access enhance Saudi equities’ appeal to international institutions. Major stocks, such as Al Rajhi Bank and Saudi National Bank, could be among the main beneficiaries, given global investors’ interest in heavily weighted index constituents.

Growth opportunities

Financial and economic adviser Hussein al-Attas said easing the ownership restriction would be positive for Saudi equities, but is neither the only nor the main factor behind higher inflows, given that most listed companies remain well below the current 49% ceiling.

The direct impact could therefore be concentrated in a limited number of stocks that attract strong overseas demand or face constraints on their relative index weightings. More broadly, the change would remove a potential future obstacle for global investors and institutions and broaden the range of opportunities available in Saudi Arabia.

Al-Attas noted that allocation decisions are shaped by valuations, earnings growth, liquidity, governance and market depth, as well as the ease of entering and exiting investments.

Regulatory clarity, continuity of economic reforms and the diversity of opportunities have also become increasingly important, particularly as the Kingdom undergoes transformation in technology, tourism, logistics, energy and mining.

Al-Attas also pointed to a gradual shift in foreign appetite away from index-related investments and blue-chip stocks toward more specialized growth opportunities. International investors have become more selective and increasingly view Saudi Arabia not simply as an oil or banking market, but as one offering opportunities tied to economic transformation and Vision 2030.

He expects overseas investors to maintain a strong presence in blue-chip stocks because of their liquidity, depth and ability to absorb large institutional allocations.

However, the strongest potential growth in foreign ownership could come from high-growth companies, particularly in newer sectors or those underrepresented in global portfolios, including technology, healthcare, consumer services and logistics.

Al-Attas argued that greater market depth and a broader base of companies and sectors capable of generating sustainable earnings growth will be the most important factors in increasing foreign allocations.

A higher ownership ceiling is important, but investors ultimately need sizable opportunities, high liquidity, attractive valuations and companies capable of translating economic growth into tangible earnings and returns, he said.

Slight decline in foreign ownership

Saudi stock market data showed limited changes in overseas holdings in several listed companies during the Sept. 1, 2026 session.

Foreign ownership in Saudi Fisheries rose 0.57 percentage point to 5.42%, while Yanbu Cement gained 0.50 point to 9.39%. Holdings also increased to 7.04% in MESC and 18.26% in eXtra.

By contrast, foreign ownership declined in several companies, including Rasan to 39.29%, Al-Babtain to 25.56%, Edarat to 24.31%, Mobily to 22.67% and Jarir to 22.04%.

Easing foreign ownership restrictions would mark another step in opening the Saudi market, but would not by itself guarantee additional capital inflows.

Recent ownership movements reveal clear differences in investor appetite across listed companies, underscoring that stocks’ appeal will continue to depend on earnings growth, performance, valuations, liquidity and market depth.

The real test, therefore, will be the market’s ability to turn regulatory opening into sustainable opportunities capable of attracting foreign capital.

Business

Canada’s Counter-Tariffs Take Effect on Various US Goods

View of the International border on the Gordie Howe International bridge that connects Windsor, Ontario, Canada and Detroit, Michigan on September 6, 2026. (AFP)
View of the International border on the Gordie Howe International bridge that connects Windsor, Ontario, Canada and Detroit, Michigan on September 6, 2026. (AFP)
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Canada’s Counter-Tariffs Take Effect on Various US Goods

View of the International border on the Gordie Howe International bridge that connects Windsor, Ontario, Canada and Detroit, Michigan on September 6, 2026. (AFP)
View of the International border on the Gordie Howe International bridge that connects Windsor, Ontario, Canada and Detroit, Michigan on September 6, 2026. (AFP)

Canada's retaliatory tariffs on billions of dollars in US products took effect Tuesday, as a trade war between the North American neighbors heats up.

The announced duties of 15 percent, 25 percent and 50 percent apply to $27.6 billion (US$20 billion) in imports from the United States, covering steel and aluminum products as well as dairy goods like cheese. But Canada removed some seafood products from the initial list.

Ottawa's pushback comes weeks after US President Donald Trump imposed 50-percent tariffs on a similar value of Canadian products, over what Washington deemed as "discriminatory treatment" against US alcohol, automobile and dairy industries.

The US tariffs hit items like hockey sticks and cement, impacting about 5.5 percent of Canadian exports to the United States.

On Monday, Trump threatened to block sales of Canada's Bombardier Aviation in the United States, unless the Quebec-based plane maker moves manufacturing to the US.

"No more selling Bombardier in the United States!" Trump posted in all caps on his Truth Social platform, though he did not specify how he would achieve a sales halt.

Thousands of Bombardier aircraft currently operate in US airlines' domestic fleets.

In a statement Monday, the aerospace company touted its creation of "tens of thousands of jobs across the United States," with "direct employment" in more than 20 states, including Kansas, Texas, Arizona and California.

The company also noted that it spends over $2.5 billion annually with suppliers, and said its supply chain is "made up of approximately 2,800 American companies across 47 states."

"Bombardier values its great partnership with American companies and its US employees," the company's statement said.

US tariffs pose a modestly negative risk to Canada's overall economy, but analysts note that they have a sharper impact on Central Canada's manufacturing sector.

Negotiations between both sides broke down August 21 after days of meetings in Washington, with Canadian Prime Minister Mark Carney saying he decided to suspend the trade talks.

At the time, Carney said the Trump administration's terms were ultimately unacceptable, adding that US negotiators had introduced restrictions on Canadian trade deals with other countries at the eleventh hour.

US officials also made unacceptable "threats" to the French language and "Quebec culture," he added, referencing the French-speaking province in eastern Canada.

But Trump's top trade official Jamieson Greer later noted that the US government is aware that French language protections are sensitive and important.

"This is not something where we push hard, or condition, or red-line," he told Canadian public broadcaster CBC last month.

- War of words -

Ottawa and Washington have not resumed negotiations since, and have continued trading barbs.

Asked if both sides were in a trade war, US Treasury Secretary Scott Bessent told CNBC last week (Aug 31) that he did not think one could be in a tit-for-tat fight with a country that is 13 times larger.

"We're not at war with Canada," Bessent said on the sidelines of a G20 finance leaders' meeting. "How are we going to be at war with Canada? They're going to take their two set submarines from the Edmonton Mall and sic them on us?"

He was referring to a former attraction at a shopping center in the Alberta province.

Pentagon chief Pete Hegseth separately appeared to mock the physical appearance of a Canadian soldier on social media.

Carney said a day later that the remarks were "beneath their office," adding that this was "not constructive."

He said both sides can have discussions "when the Americans stop doing memes" and start being serious.

Trump also signed an order in August to rename Lake Ontario, on the border with Canada, as "Lake America."

This has sparked anger in Canada, amid a broader wave of patriotism triggered by Trump's hostility.

At the start of his second presidency, Trump also ordered the Gulf of Mexico be renamed the Gulf of America. He has made claims that Canada should become the 51st US state as well.

Although Carney is backed by Canadian public opinion, his country remains reliant on its neighbor. Nearly 60 percent of Canada's imports come from the United States and about 70 percent of its exports go to the US market.

To help businesses and workers, Canada's government has unveiled an aid package of $7.5 billion (US$5.4 billion).

Business

China’s Exports Pick Up in August, Jumping 25% as Its Trade Surplus Widens

People shop in a bakery in a shopping mall in Beijing, China, 08 September 2026. (EPA)
People shop in a bakery in a shopping mall in Beijing, China, 08 September 2026. (EPA)
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China’s Exports Pick Up in August, Jumping 25% as Its Trade Surplus Widens

People shop in a bakery in a shopping mall in Beijing, China, 08 September 2026. (EPA)
People shop in a bakery in a shopping mall in Beijing, China, 08 September 2026. (EPA)

China’s exports jumped 25% in August from a year earlier on strong demand for autos and high-tech goods as its record trade surplus widened further, its customs agency said Tuesday.

The data was broadly in line with what economists had expected and comes just ahead of a planned meeting between Chinese leader Xi Jinping and US President Donald Trump. That's set for late September, though Beijing has not yet confirmed the exact date for the visit.

Trade is expected to be among the key topics of discussion between Trump and Xi when the two leaders meet.

China’s global imports climbed 28.2% in August from a year earlier, up from July’s 27.5% rise. Exports grew 23.9% year-on-year in July. The trade surplus expanded in August to $119.1 billion from $112.5 billion in July.

Policymakers in the US and elsewhere have raised concerns over China’s ballooning trade surplus, which surged to a record $1.2 trillion for the whole of last year. Beijing has said that it is not seeking to maximize its trade surplus.

In August, China's exports to the US totaled $42.5 billion, up 34.4% year-on-year, in part due to a base effect after higher US tariffs caused exports to fall last year. US exports to China last month were $13.3 billion, leaving a trade surplus in China's favor of about $29.2 billion, according to Chinese data.

Exports to the EU rose 6.6%, while those to Southeast Asia and Latin America rose 30.2% and 17.5%, respectively.

Exports have consistently outpaced imports and are “set to lead to a new record-high trade surplus this year,” said Lynn Song, chief economist for Greater China at the Dutch bank ING.

China has weathered disruptions from the Iran war better than many other countries. It also has been exporting more to Southeast Asia, Latin America and Africa, shielding it from the impact of higher US tariffs.

Exports of autos in August grew 43% year-on-year while semiconductor exports surged 129.8%, the customs data show.

“China is very competitive in its tech goods exports,” said Chi Lo, a senior market strategist for Asia Pacific at BNP Paribas Asset Management. In recent months, rising exports of electric vehicles, industrial machinery and semiconductors have helped fuel China’s robust shipments globally.

“China has moved aggressively up the value chain and has become a major player in AI infrastructure and industrial automation,” he said.

At home, China is still struggling to boost its economy as consumption and investment remained sluggish following a yearslong real estate sector downturn. On Sunday, China said it was injecting around $54 billion into state banks and insurers to help lift its economy.

China's continued reliance on exports to fuel growth prompted 19 members of the Group of 20 large economies to agree to address such economic imbalances at a recent meeting of top financial officials in Asheville, North Carolina. China was the lone dissenting G20 member after US Treasury Secretary Scott Bessent described China’s trade surplus as a barrier to global economic growth.

The strategic stalemate between China and the US will likely remain, said Lo of BNP Paribas. “Both sides hold each other hostage in some strategic products, with the US withholding high-end tech goods from being sold to China and China withholding rare-earth exports to the US,” he said.

China and the EU are also set to meet for ministerial level trade talks in the fall, as the EU struggles to reduce its roughly 1 billion euros-a-day trade deficit with China.

The EU implemented measures in July to protect its steel industry and has limited tax-exempt imports of Chinese e-commerce small parcels.