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Arabian Post
2 days ago
- Business
- Arabian Post
Arqaam Capital Intensifies ECM and DCM Push Amid Gulf Deal Boom
Arqaam Capital is stepping up its equity capital markets, debt capital markets, and loan syndication operations in response to an upswing in transaction volume across Saudi Arabia and the UAE, positioning itself as a more prominent regional player. The Dubai‑based financial services firm, with licenced offices in the UAE, Saudi Arabia, Egypt and Lebanon, has secured permissions in the Kingdom of Saudi Arabia to advise on ECM mandates. Rawad Kassouf, Head of ECM Execution & Syndicate, noted that the Saudi team is undergoing expansion and actively leveraging a 27‑strong research analyst base to deepen research capabilities and strengthen regional and international distribution for issuers. Arqaam, originally a sales and trading brokerage, entered the ECM arena by managing the Dubai Holding REIT as a joint bookrunner. Kassouf, who joined from ADCB in August 2024 to spearhead ECM expansion, said, 'We're getting deals from the UAE, Saudi Arabia and Oman, and we expect to advise on more ECM transactions by year end'. He anticipates increasing activity in Saudi listings, particularly from industrial and real estate sectors driven by large family-owned businesses seeking to list on Tadawul. ADVERTISEMENT Expansion across the debt-markets is being led by Omar Musharraf, newly appointed Managing Director of Debt Solutions and DCM. Musharraf joined less than two months ago from Oman Investment Bank, where he headed structured finance and DCM. At Arqaam, he is tasked with growing the debt platform by anchoring flow business in DCM and loan syndications, as well as higher‑margin structured finance and private credit. GCC debt capital markets had outstanding debt exceeding US$1 trillion by end‑Q1 2025, rising 10 % year‑on‑year, with quarterly issuance hitting US$89 billion—a modest 3 % year‑on‑year decline despite quarterly growth. Musharraf remarked on the sophistication of issuances and tighter pricing, increasing competition and compressing fees: 'Value creation now hinges on structuring complexity and execution'. By year‑end, Musharraf expects a full debt solutions strategy supported by new fixed‑income analysts added to the research team. Arqaam has already supported key transactions, such as the Sobha deal, and is involved in several additional corporate, financial institution, and sovereign debt transactions, also evaluating private credit opportunities. The firm is staging its DCM expansion prudently, targeting high‑quality credit issuers—government‑linked entities or private sector firms aligned with regional priorities, including oil and gas. It is also aiming to tap deeper into sukuk markets and Additional Tier 1 issuances across Saudi and the UAE. New regulatory standards are catching attention: AAOIFI's Standard 62 introduces potential complexities to sukuk issuance, prompting careful monitoring by Arqaam. ADVERTISEMENT Forecasts indicate around US$35 billion of debt refinancing across the GCC in 2025–26, driven by sovereign and corporate maturities as well as infrastructure financing and economic diversification strategies. Musharraf commented, 'Debt refinancing alone will keep us active, with a significant volume of sovereign, corporate and FI maturities on the horizon,' alongside new issuances from regional and global players. Kassouf highlights Oman as a potential growth market: an upgrade from frontier to emerging market status—possibly scheduled for next year—could attract increased foreign direct investment, re‑ratings and valuation boosts. Despite the growth trajectory, both ECM and DCM businesses face pressures. Kassouf points to 'tight fees and stiff competition,' especially in post-launch aftermarket performance, which requires a delicate equilibrium between issuer objectives and investor returns. Musharraf echoes this sentiment, acknowledging fee compression and the escalating demand for intricate structuring. Arqaam is taking a strategic approach in response. The firm is intensifying recruitment across ECM and DCM, enhancing its research infrastructure to include fixed-income analysts and emphasising structuring capabilities that justify its advisory fees. This expansion is underpinned by strong macroeconomic fundamentals in the Gulf region. Saudi Arabia—responsible for 45.1 % of GCC DCM outstanding—and the UAE, with Qatar, are at the forefront. ECM activity is gaining momentum, with growing participation from real estate conglomerates looking to diversify via public listings. Government‑related entities are expected to fuel much of the pipeline in Q3 and Q4, though privately owned firms are increasingly opining on listing possibilities. Oman's evolving market classification adds another source of upside, potentially drawing new players and capital. Looking ahead, Arqaam Capital seems poised to navigate the complexities of Gulf capital markets with a reinforced advisory model, deeper research backing, and a dual‑track strategy across ECM and DCM. The firm is strategically augmenting its teams, refining product offerings, and tracking regulatory and market shifts to capitalise on Gulf investment flows while standing firm against competitive and pricing headwinds.
Zawya
2 days ago
- Business
- Zawya
Arqaam Capital strengthens IB drive as deals surge in Saudi, UAE
Initially set up as a sales and trading brokerage, Arqaam Capital is now accelerating its ECM, DCM, and loan syndication efforts as deal flow rises in Saudi Arabia and the UAE. But the expansion isn't without challenges, including tight fees and stiff competition. Headquartered in Dubai's DIFC and with offices in UAE, Saudi, Egypt and Lebanon, the financial services firm secured licenses in Saudi that would enable them to advice on ECM mandates. Rawad Kassouf, Head of ECM Execution & Syndicate at Arqaam told Zawya that the firm is expanding the Saudi team and currently busy leveraging its team of 27 research analysts to maximise research capabilities as well as regional and international distribution for issuers. Arqaam was a joint book runner for Dubai Holding REIT. 'We're getting deals from the UAE, Saudi Arabia, and Oman, and we expect to advise on more ECM transactions by year end,' said Kassouf, who was a senior investment banker at ADCB before joining Arqaam to expand its ECM division in August last year. While Saudi Arabia and the UAE are at the center of capital markets activity, Kassouf said Oman's potential upgrade from frontier to emerging market status—possibly next year—could lead to increased FDI inflows and re-ratings that may boost valuations re-ratings. Saudi Arabia is set to maintain its leadership in ECM this year, driven primarily by industrial listings, with real estate following closely. 'The large families in the kingdom who have huge real estate arms are all considering to list. There is a scarcity of these kind of companies on Tadawul. When it comes to aftermarket performance of recent issuances bankers need to strike a healthy balance between issuer and investor expectations. We should be able to manage it in upcoming IPOs,' Kassouf said. 'We are going to see a busy Q3, Q4 in KSA and UAE. Most initiatives will be driven by government related entities, but we are seeing more and more privately owned companies considering listing.' DCM business roadmap Omar Musharraf, Managing Director of Debt solutions and DCM at Arqaam Capital joined the firm barely two months back. Previously, he was head of structured finance and DCM at Oman Investment Bank. 'At Arqaam, I've been mandated to establish and scale the debt platform, anchoring the flow business through DCM and Loan Syndications on one side, and higher-margin segments of Structured Finance and Private Credit on the other,' Musharraf said. The size of the GCC DCM passed $1 trillion outstanding (all currencies) at end-1Q25, up 10% year on year (yoy). Total DCM issuance in Q1 2025 grew by 11% over the quarter to $89 billion but was down 3% yoy. Saudi Arabia has the largest share of DCM outstanding (45.1%), followed by the UAE (29.9%) and Qatar (13%). The regional debt capital markets remained active even as global markets stumbled amid concerns over Trump's tariff announcements. 'Issuances have become noticeably more sophisticated. Issuers are now exploring various options and tightening pricing as well. All attention is focused on the Middle East,' he noted. 'Competition is intense, fees are compressed, and value creation now hinges on structuring complexity and execution.' Musharraf is currently focused on building up a team and will add fixed income analysts to the research team. 'By year-end, we should have a comprehensive debt solutions strategy in place. A key part of that is expanding our research coverage – currently equity-focused – to include fixed income analysts,' he added. In the meantime, Arqaam is doing everything possible for more visibility. 'We supported the Sobha transaction and are currently working on several additional deals, across corporates, financial institutions, and international sovereigns, while also evaluating a pipeline of private credit opportunities. It's a busy time,' Musharraf said. While the DCM business will start at a modest scale or benchmark size, it is targeting high-quality credit, either government-linked or private sector issuers that naturally align with the country's priorities, such as oil and gas. It is also training its sights on tapping into the broader sukuk market and AT1 issuances in Saudi Arabia and the UAE. 'Sukuk markets remain strong on both the demand and supply side. The traditional barriers such as complexity, cost, and timing have narrowed materially, making sukuk a far more competitive option. That said, AAOIFI's new Standard 62 could introduce fresh complications. We're watching that closely,' he said. There is approximately $35 billion in debt refinancing expected across the GCC region during 2025–2026. This refinancing is driven by maturing sovereign and corporate debt, as well as ongoing economic diversification efforts and infrastructure financing. 'Debt refinancing alone will keep us active, with a significant volume of sovereign, corporate and FI maturities on the horizon. Add to those new issuances from both regional and emerging global players, and there's a considerable amount of market activity ahead and no shortage of market action,' he added.
