“DEWA” oversubscription is a proof of confidence in Dubai economy, including the real estate sector, a real estate expert said
Dubai, United Arab Emirates
Friday 08 April 2022
Real estate expert Walid Al Zarooni, Chairman of “W Capital”, the real estate brokerage, said that the strong local, regional and global demand for the initial public offering of Dubai Electricity and Water Authority “DEWA” shares, reflects the strength of Dubai’s economy and other government institutions, as well as enhances the success of all current and targeted investments in the emirate, including the real estate sector.
Al Zarooni stressed that the success of the DEWA IPO, which is the largest in the history of the UAE financial markets, is an evidence of the strength of Dubai’s economy, which is based on diversified and flexible economic foundations. He believes that the IPO, the second largest after the Saudi Aramco in 2019, is a qualitative step in the modern regional economic history.
Walid Al Zarooni added that the large coverage ratio shows an unprecedented investment thirst for investment in the Dubai financial market, and confirms that there is stimulating liquidity to seize opportunities in the emirate, including the real estate sector, which represents a great opportunity for investments nowadays and in future.
Al Zarooni explained that the real estate market in Dubai offers long-term opportunities and gains, thanks to the strong foundations and positive economic expectations that boost the confidence index of future investments.
The Chairman pointed out that Dubai has maintained its position, and become the destination of choice for real estate investments, whether for large companies or entrepreneurs, and the recent global changes and the economic repercussions of the pandemic have fueled the interest of foreign investors to invest in Dubai real estate. That will attract more new businesses to benefit from the privileges and high-level infrastructure provided by the emirate, looking forward to outperform their counterparts in global capitals.
Al Zarooni added that the real estate sector in Dubai is still one of the vital sectors that contribute significantly to support the emirate’s economy, and attracting foreign investments and international emerging companies, where more than 38,000 new investors were attracted to the Dubai real estate market, as the Dubai Land Department data show. This reflects the regional and global position enjoyed by the real estate market in the emirate.
Walid Al Zarooni pointed out that the success of DEWA’s IPO also enhances Dubai as an attractive environment for global capitalists, and is an important indicator of confidence in the success of future IPOs, while it is an incentive for more local, regional and international companies opting to list in the market.
DEWA’s subscription requests made a world record, amounting to Dhs315bn, with the high demand from sovereign funds and global investment funds. DEWA’s market cap approached Dhs124bn.
The IPO of Dubai Electricity and Water Authority is the first in a series of IPOs, after the Supreme Committee for the Development of Financial Markets and Exchanges in the Emirate of Dubai announced at the end of last year. They plan to list 10 government and semi-government companies in the Dubai Financial Market as part of their strategy to take a wide range of measures and policies to support the financial sector in an unprecedented way, and stimulate the pace of growth to preserve the achievements and successes that consolidate Dubai’s leading position as one of the most important financial and business hubs in the world.
It is expected that the huge listing deals will follow to cover other icons including “Salik”, “Tecom” and “Empower”, which is a supportive force to enhance the activity of the markets and give dealings the expected boost.
About “W Capital”:
“W Capital Real Estate Brokerage” was established in 2007 in the United Arab Emirates, specializing in real estate development, buying, selling, renting as well as consulting services for real estate companies.
Since its inception, the company has sold over AED 200 million of properties to major developers.
About Walid Al Zarooni:
Walid Al Zarooni is the founder and Chairman of W Capital Real Estate Brokerage. A certified real estate expert from the Dubai Real Estate Regulatory Agency “RERA”, he is the author of “Secrets of the Smart Real Estate Investor”.
Al Zarooni is one of the first experts to harness social media to raise the public awareness about real estate. He provides almost free advice on a daily basis, as well as latest news and updated information through videos and posts on social media platforms such as ” Instagram “,“ Snapchat ” and “Twitter”, on which he is very active.