[2007-10-24]  Saudi shares lead way in Middle East
Saudi Arabia looks set to continue to outperform the rest of the Middle East in stock market flotations, in spite of a general downturn in the Arabian Gulf, according to analysts.

All aspects of the most active initial public offering (IPO) market and largest economy in the Middle East - Saudi Arabia - come under the spotlight at the Second Saudi IPO Summit that takes place from November 10 to 14 at the Four Seasons Hotel, Riyadh.

On average, newly-listed Saudi shares have appreciated five-fold after listing. Saudi companies have also raised the most in the region this year, they said.

The number and size of IPOs in Saudi Arabia is expected to outperform the rest of the Middle East as the kingdom displays the continuing maturity of its capital markets.

In the first half of this year, the Middle East clocked up 20 IPOs. Eleven were in Saudi Arabia, say analysts.

"Saudi Arabia's economic performance is robust and sound," said IIR Middle East senior conference manager Deep Marwaha.

IIR Middle East is the organiser of the Saudi IPO Summit.

"Strong oil revenues and high liquidity have ensured strong GDP growth and general sentiment, although lower than previous years, is returning. Saudi Arabia's appetite continues to be healthy with several large and small IPOs in the pipeline." Two of the three largest offerings in the second quarter of this year were Saudi Kayan Petrochemical Company's offering of $1.8 billion and Saudi Arabia's Jabal Omar Development Company offer of $537 million.


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