The new platform, formed by entrepreneur Faisal Belhoul, intends to hold an initial public offering (IPO) in Dubai before the end of the year to invest in digital companies.
Dubai Digital Investment Co. intends to raise a total of one billion dirhams ($272 million). “The local authorities have granted us permission to establish a new investment firm focused on the technology industry,” Belhoul added.
The listing of the company will take place against the backdrop of lower demand for new shares in the Middle East
The IPO of Dubai Digital comes at a time when demand for new shares in the Middle East is falling. While the region just experienced its best first-half IPO performance in history, aided by rising oil prices and capital inflows, local stock markets have plummeted from their highs.
The firm’s intentions to pursue possibilities in technology coincide with a sector crisis, with investors fleeing what they perceive to be overpriced assets.
However, there are other corporations looking for attractive partnerships in this industry—Mubadala Investment Co. from Abu Dhabi, for example, invests in technology-oriented enterprises despite dropping valuations.