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Mid-East keen on floats path
19.06.08
The Middle East is poised for an initial public offering bonanza, with 20% of family-owned companies planning to list, according to an Ernst & Young International survey.
Others see sense in listing, but are too conservative to take the step, the survey found. Half of respondents agreed that being listed is important to their future.
"As family businesses grow older and larger, they have to deal with increased levels of risk and complexity," said Dubai-based Ernst & Young managing partner Omar Bitar. "They also face pressure from various stakeholders to increase transparency and make quantum leaps in their profitability."
The survey covered companies in Saudi Arabia, Kuwait, Qatar, Oman, Lebanon and Jordan. It found that a similar number to those planning to list were opposed to selling shares.
Business in the region is still overwhelmingly a private affair. More than 75% of Middle East businesses are family run and they have combined assets of more than £500 billion.
