Citigroup targets extra offers in Gulf area By Reuters

By Hadeel Al Sayegh

DUBAI (Reuters) – Citigroup Inc (NYSE:)’s funding banking workforce has elevated by 50% over the previous two years and extra persons are being added within the United Arab Emirates (UAE) and Saudi Arabia, becoming a member of rivals searching for to reap the benefits of a red-hot Gulf IPO market.

The Gulf area has change into a brilliant spot for public share gross sales this 12 months, boosted by excessive oil costs and government-led privatisation programmes.

Gulf issuers have raised about $16 billion in preliminary public choices (IPOs) this 12 months, accounting for about half of complete IPO proceeds from Europe, the Center East and Africa, Refinitiv information exhibits.

The expansion in Gulf fairness capital markets is in sharp distinction to the US and Europe, the place international banks have been trimming headcount in a dealmaking drought.

Citigroup moved its director for energy, renewables and utilities, Omar El Duraie, to Dubai from London this 12 months .

It’s planning so as to add extra folks in Saudi Arabia and the UAE by the tip of the 12 months, mentioned Miguel Azevedo, Citi’s head of funding banking for the Center East and Africa, excluding South Africa.

“This 12 months the area has been extraordinarily energetic whereas the remainder of the world has been on pause,” he instructed Reuters.

Many IPOs have had books coated inside an hour or a number of hours from opening. Some have elevated the scale of choices throughout the course of to accommodate robust demand.

Others increasing within the Gulf embody Rothschild & Co, which has opened an workplace in Saudi Arabia, whereas Goldman Sachs (NYSE:) is hiring bankers for its wealth administration and funding banking companies within the area.

(This story has been corrected to alter first paragraph to say the funding banking workforce has elevated by 50%, not doubled)