RIYADH – The sharp upturn in IPO activity which is being forecast for Saudi Arabia's markets will be explored in a forthcoming report to be published by the global publishing, research and consultancy firm Oxford Business Group (OBG). “The Report: Saudi Arabia 2014” will look at the trends earmarked for the Kingdom's markets this year and beyond, including an anticipated rise in acquisition financing on the back of expected mergers and buyouts, alongside more sukuk issuances. It will also consider the growth expected to come from companies opting to finance expansion programs by going public or seeking funds from bond markets. OBG has signed a Memorandum of Understanding (MOU) on research facilities with Deutsche Securities Saudi Arabia for its forthcoming report on the country. Under the MOU, OBG will have access to the firm's expertise and research resources, which will be used to compile the Group's coverage of the Kingdom's capital markets in The Report: Saudi Arabia 2014. OBG's Regional Editor, Oliver Cornock, said while 2013 had been a relatively slow year for the markets, the funding of new projects and infrastructure development looked set to signal the beginning of several years of strong growth. “While the debt capital market remains limited, last year brought important issuances, such as the GACA sukuk,” he said. “The increasingly important role that debt issuances are expected to play in funding major projects is one of several topics I look forward to analyzing with Deutsche Securities Saudi Arabia.” The CEO of Deutsche Securities Saudi Arabia Jamal Al Kishi added that while the Kingdom offered an attractive and safe investment environment, more could be done to improve the dynamics of the market. “Capital flows to an environment where it finds a good return on investment and feels welcome,” he said. “Deutsche Bank is bullish on Saudi Arabia's intrinsic market, political and financial stability, and solid infrastructure the recent issues encountered in other emerging markets help shine a light on the stability and solid fundamentals of the Saudi economy.” OBG's Country Director Andrianna Dafnis said “it is an exciting time to be involved in the Kingdom's capital markets sector. From our research here we expect there to be larger, more frequent debt issuances, which will become more widely accepted as legitimate ways to finance projects.” The Report: Saudi Arabia 2014 is produced in partnership with the Riyadh Chamber of Commerce and Industry, Jeddah Chamber of Commerce and Industry and Deloitte. — SG
