Companies in the Middle East and North Africa (Mena) region have raised $11.5 billion last year, through 27 initial public offerings (IPOs), nearly four times more than the $3 billion in 2013, according to a report.

The Ernst & Young IPO update for Mena said the amount raised was the highest since 2008.

Hafeez Abdullah, chairman of ‘The H Holding Enterprise,’ said: “We anticipate that regional investors will display stronger preference to investing in “brick and mortar” real estate instead of stocks and shares in 2015; however, the value of capital raised will continue to rise across different sectors, including public real estate companies.

“The Mena IPO market remains very appetising for investors, however, small investors still prefer buying real estate because they feel investing in real estate yields higher returns in a short time span.”

‘The H Holding Enterprise’ is upbeat about larger inflows of investments into real estate in Dubai, spurred by the rising confidence among investors in lucrative return on investment from property in the short and medium, all the way up to Expo 2020 and beyond.

Youssef Jammal, chief executive officer, said: “Real estate is now regarded as a sound investment, especially by people with easy liquidity. This helps self-finance the market as investors are now more confident of the direction real estate is taking.

“There is high optimism fuelled by EXPO 2020 preparations, and property hotspots have expanded to new areas, and not just limited to certain areas of Dubai, as earlier.”

In terms of capital expenditure in Dubai, it is projected that Expo 2020 would involve a cost of around Dh26 billion ($7 billion) and a big chunk of that would go toward infrastructure, metro extension, highway infrastructure and telecom expansion, said the report.

“The market is very stable and robust, and the steady pace of growth augurs well for the economy as a whole and the property sector in particular, as well as for investors,” said Jammal.

“The sector is very appealing to Gulf investors, thanks to investor-friendly legislation and a growing confidence in the profitability of investments,” he said.

“The property sector in Dubai is attracting a large number of local investors who have deep understanding of the market. They know where to put their money, as they are better informed about what projects to choose. This gives Dubai an edge, because it makes life easier for all stakeholders -- developers, brokers, banks, investors and end-users as well as Dubai Land Department (DLD),” said Abdullah.

“When local investors drive the market, risks are minimised and international investors are more positive above investing in an emirate that is becoming a global city for living, studying, investing, healthcare and tourism,” he added. - TradeArabia News Service