Overview

The global financial crisis has had a considerable adverse effect on global ECM transactions, and the markets in the Middle East have been affected severely in the downturn. However, as renewed optimism grows for the recovery of the global economy it is widely anticipated that ECM business in the region will recover over the coming 12 to 18 months.

This guide is intended to provide guidance on the regulatory frameworks for ECM in the Middle East and will be of interest to financial advisers advising on potential IPO mandates and businesses considering listing in the region.

Notwithstanding that many of the capital markets in the region were established relatively recently, and that there are a number of areas in which the regulatory environment remains to be developed in consequence, it is clear that there remains a keen willingness to adopt international practice and standards, together with an appetite to grow ECM business in the Middle East. In addition, there is a strong desire on the part of regulators in the region to develop their exchanges in line with international standards – all of which provides excellent opportunities for issuers and their advisers to enter into cooperative dialogue with regulators in a manner which is often not feasible in more developed markets.

The topics covered in the guide include a brief introduction to each of the exchanges covered, the legal framework for listing, considerations as to the distinction between retail and institutional offers (if any), the eligibility criteria for an IPO, the IPO process, ongoing compliance following a successful listing, any takeover regime that may apply to a listed entity and a brief review of the process for offering foreign securities into the relevant jurisdiction. (The currency conversions given – from local currencies to US$ – are correct as of 30 June 2010.)

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