The Middle Eastern division of German food delivery giant Delivery Hero SE is preparing to start trading in Dubai next week, representing a remarkable recovery for the city’s stock market over recent years.

Talabat’s initial public offering, priced at $2 billion, is set to be the largest IPO in the Middle East for this year and the biggest technology listing globally. This event could signal a renewed emphasis on private listings within the emirate.

“Talabat is definitely not going to be a solitary case,” remarked Prasad Chari, group head of equity capital markets at Emirates NBD, the bank pivotal to the IPO. He noted that they are in “active talks” with several issuers and sponsors globally to explore the possibility of listings on Dubai’s stock exchange.

Since the beginning of its IPO initiatives in late 2021, Emirates NBD has been one of the top advisers for new share offerings in Dubai. The government’s privatization strategies have generated over $8 billion, significantly enhancing the overall market capitalization of publicly traded companies.

Alongside a similar uptick in activity in neighboring Abu Dhabi, the United Arab Emirates is set to emerge as the most dynamic hub for listings in the Europe, Middle East, and Africa region for the third consecutive year, according to data compiled by Bloomberg.

This marks a striking shift for Dubai compared to just a few years ago.

In 2021, the market experienced a considerable decline in new share offerings, compounded by a series of delistings that further eroded investor confidence. During this period, Abu Dhabi and Riyadh were already taking advantage of their privatization strategies, attracting billions and transforming the region into a prime hub for IPOs.

Dubai’s fortunes began to change in November of that same year, when the deputy ruler revealed plans to float 10 state-owned enterprises. At the same time, the stock exchange underwent extensive reforms, coupled with various initiatives to encourage private companies to go public.

These measures coincided with a post-pandemic recovery in Dubai’s economy, spurred by the World Expo and eased travel restrictions that revitalized the tourism sector. An influx of expatriates from around the world has also played a role in this recovery.

Talabat’s market debut will be closely monitored by several other firms, including the operator of the classifieds platform Dubizzle, the owner of the shisha brand Al Fakher, and hotel operator FIVE Holdings, all of which are considering share offerings.

This debut may serve as a bellwether for government-owned entities preparing for their own listings.

A few years after witnessing a wave of real estate delistings amid a declining property market, the government aims to capitalize on the current rebound — with Dubai Holding exploring the consolidation of two property portfolios into real estate investment trusts for listing, according to Bloomberg News.

Further sell-offs are also expected to follow the IPO trend, as indicated by Chari’s comments, further improving market liquidity.

Meanwhile, the benchmark Dubai Financial Market General Index has surged almost 20% this year, far outpacing its counterparts in Abu Dhabi and Saudi Arabia.

However, as Dubai stocks remain near their highest levels since 2014, this also leads to increased price valuations. Analysts have cautioned that the index may be “more vulnerable to negative developments than further positive news.”

“A significant risk for Dubai’s economy lies in a slowdown in global growth, which could reduce demand for key sectors dependent on external markets,” pointed out Monica Malik, chief economist at Abu Dhabi Commercial Bank. “Nonetheless, ongoing investment initiatives should support the economy, and Dubai’s fiscal situation has improved significantly.”

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