DUBAI - Dubai investment bank Rasmala is targeting up to two companies in the Middle East for initial public offerings (IPOs) next year, its CEO said on Tuesday.
Tamer Bazzari said companies were from either Saudi Arabia, Egypt or the UAE, but refused to elaborate.
"We are in active dialogue," Bazzari told Maktoob Business in a telephone interview. "I think in Saudi and Egypt the environment is quite supportive. You will find larger scale IPOs in Saudi and mid-size IPOs in Egypt."
Bazari said the 500-million-dirham ($137 million) fund that Deyaar, Dubai Islamic Bank and Rasmala announced earlier this year to invest in distressed properties in Dubai was drawing keen investor interest and would close by the end of this year.
Deyaar and Dubai Islamic Bank have each invested 100 million dirhams. The rest will come from investors in the region.
The fund will invest equally among residential and commercial and invest mostly in finished properties until 2011. It expects to provide investors an annual return of 15 percent, Bazzari said.
Despite forecasts that half of Dubai's offices will be empty next year and one in three homes will also be vacant due to oversupply, Bazzari does not seem worried.
"The idea is once we make the acquisitions (in 2010 or 2011) the price should reflect any kind of occupancy issues," Bazzari said. "The real estate market will be picking up by 2010, 2011."