Rami Sidani, Chief Investment Officer of the Middle East Investment Portfolios Department at Schroders Financial Corporation, said that the Gulf region is going through an unprecedented period of expansion for a long time as a result of successive listings, the latest of which was the “ADNOC Supply” company recording a strong jump in its first trading in the Abu Dhabi market, today, Thursday. .
“These listings are supported by very strong growth as a result of economic and social reforms, especially in Saudi Arabia and the UAE,” according to Sidani in an interview with Al Arabiya.
Most of these listings come from sectors that were not properly represented in the market, such as the services sector or leisure and entertainment in Saudi Arabia, and therefore these companies benefit in a significant way from the reforms. As mentioned by Rami Sidani.
He continued, “These companies provide strong investment opportunities,” noting that “ADNOC” has offered 3 companies during the recent period, which supports the expansion movement of the parent company, ADNOC.
The head of investment in the Middle East portfolio management at Schroders Financial Corporation said that the Saudi stock market is the largest in the region and has witnessed a huge amount of economic and social reforms that create a strong investment climate, as the government pumps large investments into the local market in addition to attracting large foreign investments to the market, in The implementation of many listings continued to expand and deepen the market and increase liquidity.
Regarding investment opportunities in the Saudi market, Rami Sidani said that the market has several sectors that represent strong investment opportunities, including the services sector, which witnesses huge investments in building new destinations, as well as the tourism sector at the level of religious and regular tourism, which creates opportunities for companies.
He explained that service companies are achieving strong growth, and car rental companies benefit from tourism growth, as well as entertainment and food companies, and the latter witnessed new listings such as “Americana” and “Alamar”.
Among the sectors is the industrial sector, which witnesses the spending of a huge amount of liquidity, especially in the energy sector and the transition to renewable energy, as Rami Sidani explained that Saudi Arabia consumes 4 million barrels of oil locally in power generation, and it has a plan to liberate this amount of oil and transfer it to the petrochemical industry, export and transformation Renewable energy, which requires huge spending and generates growth opportunities for companies such as cable companies and most industrial sectors.
He continued, “These opportunities existed in the Saudi market before.”
He pointed out that there is a great demand for offerings in Saudi Arabia, which may exceed 20 companies preparing for the offering, and although the percentage of foreign ownership in the Saudi market is still lower than other emerging markets, it is constantly increasing.
On the issue of ADNOC Supply, Rami Sidani said that ADNOC Supply is distinguished by the support of the parent company, and 65% of its revenues come from the parent company, ADNOC, and the latter has a huge expansion plan to increase oil production from 4 to 5 million barrels per day, which requires huge spending, as The company benefits from expansion and long-term contracts, and gives a clear view of its future cash flows.
