Citigroup targets more deals in Gulf region

Rothschild & Co SCA

22/11/2022 10:55

By Hadeel Al Sayegh
       DUBAI, Nov 21 (Reuters) - Citigroup Inc's  C.N 
investment banking team has doubled in size over the past two
years and more people are being added in the United Arab
Emirates (UAE) and Saudi Arabia, joining rivals seeking to take
advantage of a red-hot Gulf IPO market.
   The Gulf region has become a bright spot for public share
sales this year, boosted by high oil prices and government-led
privatisation programmes.
    Gulf issuers have raised about $16 billion in initial public
offerings (IPOs) this year, accounting for about half of total
IPO proceeds from Europe, the Middle East and Africa, Refinitiv
data shows.
    The growth in Gulf equity capital markets is in sharp
contrast to the United States and Europe, where global banks
have been trimming headcount in a dealmaking drought.  
    Citigroup moved its director for power, renewables and
utilities, Omar El Duraie, to Dubai from London this year .
    It is planning to add more people in Saudi Arabia and the
UAE by the end of the year, said Miguel Azevedo, Citi’s head of
investment banking for the Middle East and Africa, excluding
South Africa.
    "This year the region has been extremely active while the
rest of the world has been on pause," he told Reuters. "I expect
next year to be very similar to this year."   
    Many IPOs have had books covered within an hour or a few
hours from opening. Some have increased the size of offerings
during the process to accommodate strong demand. 
    Others expanding in the Gulf include Rothschild & Co
 ROTH.PA , which has opened an office in Saudi Arabia, while
Goldman Sachs  GS.N  is hiring bankers for its wealth management
and investment banking businesses in the region.
 (Reporting by Hadeel Al Sayegh
Editing by David Goodman)
 ((Hadeel.AlSayegh@thomsonreuters.com; +971566883310;))