HSBC has announced a robust pipeline of 45 mergers and acquisitions, as well as initial public offering mandates across the Gulf region, anticipating a resurgence in listing activity by Q4.
The outlook is notably optimistic following the recent U.S.-Iran agreement, which marks a significant step towards ending prolonged hostilities in the region.
GCC Recovery
According to HSBC’s chief executive for the Middle East, North Africa and Turkey, Selim Kervanci, investor sentiment and equity capital market activity is expected to improve as peace stabilises although recovery may take at least one quarter.
“It really depended on the [US-Iran] deal and with the prospect of a [permanent] agreement now, we expect the market to open up in the fourth quarter for the ECM [equity capital market] transactions,” said Kervanci with The National.
Kervanci, organised and spoke at the four-day HSBC GCC Exchanges Conference in London, noted that the Gulf endured an exceptionally uncertain period over the last four months.
Both the Abu Dhabi Securities Exchange and the Dubai Financial Market have recently demonstrated resilience, hitting their highest levels in three months following the release of the U.S.-Iran MoU.
This agreement is anticipated to alleviate economic pressures and restore hydrocarbon export operations to pre-war levels.
HSBC Pipeline In-Tact
Despite the tumultuous landscape of FY25, HSBC’s pipeline remains intact with potential listings from leading sectors including food, retail and technology.
These companies have opted to delay rather than cancel their public offering ambitions, indicative of regained confidence in the market’s recovery potential.
HSBC plans to continue investing in its regional operations, positioning itself as a pivotal player in post-war infrastructure reconstruction.
Significant capital will be necessary for revitalising the region’s infrastructure and diversifying its economic reliance, particularly as the focus shifts towards projects aimed at reducing dependency on the Strait of Hormuz.
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