Dubai Parks makes debut on Dubai Financial Market

(MENAFN- Khaleej Times)  Dubai Financial Market, or DFM, announced on Wednesday the listing of "Dubai Parks and Resorts" as trading commenced on the company's shares.

Essa Kazim, chairman, Dubai Financial Market, said the new listing enables investors to participate in the spectacular success story of Dubai as a tourism destination with sector's contribution to the gross domestic product expected to grow from 10 per cent in 2013 to 15.4 per cent by 2020.

Abdulla Al Habbai, chairman of Dubai Parks and Resorts and senior representatives from both sides attended the listing ceremony at DFM's trading floor.

"We are delighted to welcome the listing of Dubai Parks and Resorts, the first entertainment theme park owner to go public and list on DFM, opening the door for our vast base of local and international investors to participate in the spectacular success story of Dubai," said Kazim.

He pointed out that Dubai has rapidly reinforced its position over the past years as a key destination attracting visitors from all over the world. In 2013, Dubai has attracted 11 million visitors with a growth of 10.6 per cent and their total spending reached Dh48 billion representing 10 per cent of GDP.

"Dubai's tourism spending is expected to increase to Dh 80 billion by 2020 representing 15.4 per cent of GDP while the total number of visitors is expected to reach 20 million by the same year. In fact, the growth of tourism sector in Dubai will not only benefit from inbound tourism but also from the increased activity of domestic tourism as the IMF expects the UAE population to increase 2.9 per cent annually during the years from 2013 till 2019 reaching to 10.7 million," said Kazim.

On the first day of trading, shares of Dubai Parks and Resorts, which plans build a cluster of three theme parks between Dubai and Abu Dhabi, was down nine per cent at Dh0.91 at the close of trading, giving it a market value of Dh5.75 billion. The company raised Dh2.53 billion selling shares to finance the construction of the parks.

Dubai's stock market was the world's best performing this year until it was caught up in a regional sell off amid tumbling oil prices. The benchmark Dubai Financial Market General Index fell 0.2 per cent on Wednesday, bringing the seven-day losing streak to 14 per cent. Kazim said the accelerating pace of IPOs and listings on DFM over the past few weeks reflected the sound fundamentals of our economy's various sectors as well as investors' profound confidence in the macro economic outlook and the performance of companies. "Additionally, it underlies issuers' confidence towards DFM as a leading and efficient platform for companies and investors from the UAE and beyond, due to its ample infrastructure, and world-class services. Moreover, this unique listing from a new and dynamic sector represents an invaluable addition to our list of issuers and gives further momentum to our efforts aimed at attracting fast-growing sectors," Kazim added. Raed Al Nuaimi, CEO of Dubai Parks and Resorts, said the listing of Dubai Parks and Resorts on DFM marked an important milestone towards achieving the company's objectives and brings it one step closer to its vision of developing a premier year-round global entertainment destination.

"Against a background of strong macroeconomic fundamentals and favourable demographic trends, we see Dubai Parks and Resorts as well positioned to meet increasing visitor demand for leisure and entertainment, both locally and regionally, and should be able to capitalise on the projected growth in tourists to Dubai and the UAE."

Including the new listing, DFM has attracted four IPO listings in 2014 for leading companies operating in diversified sectors including: retail, real estate, education, healthcare and tourism, which further diversifies the list of issuers and enables investors to participate in the growth of these vibrant sectors.

Dubai Parks & Resorts is building Motiongate Dubai, Bollywood Parks Dubai and Legoland Dubai, as well as a 500-room hotel on a stretch of desert half way between Dubai and Abu Dhabi. They will open by October 2016 and are expected to attract 6.7 million visitors the following year, according to the company.