Alabbar to invest $20 billion in Syrian reconstruction venture
UAE property developer Mohamed Alabbar is making the biggest private-sector investment yet in Syria’s reconstruction, unveiling plans for at least $20 billion of housing, tourism and business developments in Latakia and Damascus.
The Dubai-based founder of Emaar Properties plans to build tens of thousands of homes alongside resorts, offices, schools and hospitals, telling Bloomberg that years of war have created one of the region’s last large-scale development opportunities.
“There hasn’t been much development for the past 50 years in Syria,” said Alabbar, who built Dubai’s 162-story Burj Khalifa. “Arabs are looking for investments in the Arab world.”
Alabbar’s investment is one of several signs that Gulf companies are moving into Syria after Washington lifted sanctions and President Donald Trump met with Syrian President Ahmed al-Sharaa, dramatically changing the country’s investment outlook.
Saudi Arabia, Qatar and the UAE have also announced projects including ports, airports and infrastructure, as governments and investors race to secure an early foothold in the reconstruction effort.
UAE foreign assets pegged at $2.5 trillion by investment chief
A new interview with the UAE’s foreign investment chief puts the country’s current assets abroad, both government and private, at an estimated $2.5 trillion.
Jamal Bin Saif Al Jarwan, Secretary-General of the UAE International Investors Council (UAEIIC), also told the Emirates New Agency WAM that the portfolio is doing well despite economic headwinds.
The UAE’s international investment footprint is topped by sovereign wealth funds holding 72% of the assets, Al Jarwan noted.
Abu Dhabi Investment Authority (ADIA) is the leading foreign investor, followed by Mubadala Investment Co., Investment Corporation of Dubai, Emirates Investment Authority and ADQ.
All told, the UAE owns seven sovereign wealth funds with assets exceeding $2 trillion, trailed by government-owned and quasi-governmental companies with 18%, UAE banks with 2.5% and 7.5% originating from family-owned and private companies.
The “most prominent” deal in 2023 was between U.S. private equity firm Apollo and ADIA to acquire chemicals manufacturer UniVar for $8.1 billion, he said.
Dubai’s Parkin IPO surges amid Gulf privatization push
As of this morning, Dubai has IPO’d six out of the 10 government entities it plans to take private as the emirate looks to boost trading volumes on its stock exchange and join the capital markets action picking up speed in Abu Dhabi and Riyadh.
The Dubai public parking company, Parkin, debuted on the DFM today with a 31% surge in its stock price. Parkin’s $429 million IPO was 165 times covered and attracted $71 billion in orders – a record for Dubai. The company pitched to shareholders a growth story on the back of Dubai’s population boom: it forecasts demand for public parking to grow by 60% by 2033, Bloomberg reports.
Strong post-listing performance is becoming a signature of the region’s companies – returning an average of 40% to investors – and spurring international interest in IPOs here. Strong investor demand has been bolstered by government reforms, particularly in the UAE and Saudi Arabia, amid a privatization push.
Nearly 30 IPOs are expected in the Gulf this year. Two of the region’s biggest grocers are in line: Lulu Group is reportedly eyeing a $1 billion dual listing in Abu Dhabi and Riyadh. Spinneys Dubai, the franchisee of the supermarket chain in the UAE and Oman, is also expected to go public in 2024. No word yet on what the Dubai government may sell off next.
