Our partnership with the Middle East

London Stock Exchange has been a key partner to the Middle East in its efforts to integrate the region’s domestic capital markets and economies with the world’s. We are currently the number one exchange for companies seeking to list equity internationally, having hosted more IPOs from the region than any other stock exchange globally.

Accessing international capital

Over 30 companies from the Middle East have used our equity markets to access international capital, raising over $13bn through IPOs and a further $8bn in follow-on issuance. Regional representation is widespread and includes companies from UAE, Egypt, Iraq, Lebanon, Qatar, Oman and Bahrain.

A steady stream of companies have accessed our equity markets since 2013 including Al Noor Hospitals, which achieved a valuation of over $1bn at its Premium Main Market debut in 2013; EDITA Food Industries, which simultaneously dual-listed on the Egyptian Exchange and London Stock Exchange in 2014; Arabian Food Industries, whose Global Depository Receipts (GDRs) have been traded on our International Order Book (IOB) since 2016; and oil services business ADES International which listed 35% of their share capital at a valuation of over $500m in 2017.

Network International: 2019’s landmark transaction

More recently, we have helped fuel the emerging fintech trend out of the Middle East, welcoming Network International to the Premium Segment of our Main Market.  This is the largest technology IPO on record from the Middle East & Africa region to list on our markets raising $1.6bn at a valuation of $2.8bn. This valuation was higher than most of the key global peers in the sector which gives insight into the strength and quality of the business and the receptiveness of our market to emerging technology & payments companies.

The IPO and a series of subsequent secondary selldown monetisations on the part of Network International’s shareholders (Emirates NBD, General Atlantic & Warburg Pincus) has further demonstrated the liquidity and support available in our markets for successful equity stories.  This further issuance was executed in the form of three tranches (with shares priced at a significant premium to their IPO price) in September 2019, November 2019 and January 2020 raising a combined $1.2bn. The three further issuances allowed substantial exits for the company’s owners at an attractive exit multiple.

Supporting the Kingdom of Saudi Arabia’s Vision 2030

1. FTSE Emerging Index Series (Saudi Arabia)
   In the spirit of building partnerships and fuelling the evolution of capital markets in the Middle East, London Stock Exchange Group has supported the Kingdom of Saudi Arabia in achieving a key pillar of its Vision 2030. The Kingdom’s transition from Unclassified to Secondary Emerging Market status by FTSE Russell has helped expedite the CMA’s agenda of internationalizing and reforming its capital market. The move is expected to attract an incremental estimated $6-7bn. Upon completion, Saudi Arabia is expected to be the largest capital markets within Middle East and Africa and comprise circa 3% of the FTSE Emerging index. You can read more about the FTSE Saudi Arabia index here.
    
2. The Leading International Sukuk Financier
   Over 60 Sukuk have been issued on our markets raising over $50bn.
   
   In September 2018, The Kingdom of Saudi Arabia issued its first international Sukuk raising $2bn at a lucrative yield which once again received strong investors demand from international debt managers.
   
   Furthermore, the Saudi government has been a key funder of the Islamic Development Bank (IsDB) which promotes social and economic growth in member countries and Muslim communities worldwide. The IsDB maintain numerous active debt instruments on our markets, including its most recent issuance in September 2018, when it raised €650m under its international Sukuk programme. The landmark issuance attracted first-time Sukuk investors from Austria, Finland, France, Germany and the Netherlands and helped IsDB diversify its funding sources and investor base.
    
3. Saudi Aramco’s debut bond
   In 2019, we welcomed the inaugural $12bn debut bond from Saudi Arabian Oil Company (ARAMCO). This was a landmark issuance from Saudi Aramco, which is currently the largest emerging market bond and largest corporate bond ever issued from the Middle East. Saudi Aramco's decision to list this landmark transaction on our markets reflects the confidence in London Stock Exchange to cater to international investor demand for marquee transactions and the UK’s position as a global financial centre, with a robust but fair regulatory regime.
    
4. ELITE Saudi Arabia
   ELITE, our global platform for private, ambitious companies, launched in the Kingdom of Saudi Arabia in February 2018 in partnership with Monsha’at (the Saudi SME Authority). 20 companies (including the largest date exporter, Tomoor, cement manufacturer, Cement Industries and granite miner, Tanhat Mining) came from across the country and a diverse range of sectors. These companies benefit from a local business support programme and become part of ELITE’s global network of growing companies.