As macro-economic clouds have gathered around the world this year, the outlook in many places on everything (from growth and inflation to investments and returns) has darkened.

Here in the Middle East, however, there are reasons for optimism, and much of it has to do with the dynamism of the region’s newly-invigorated stock exchanges. An investor conference we held in London was a showcase of why the Middle East is in the spotlight right now — and why substantial new listings are set to be a feature of the market for years to come.

We brought together the Saudi Stock Exchange, Boursa Kuwait, the Abu Dhabi Securities Exchange, Dubai Financial Market, and the Qatar Stock Exchange for the first time. The atmosphere at the event was philosophical about present challenges, but also cautiously optimistic about the future.

IPOs of shares in Saudi Arabia and in the United Arab Emirates have soared and there is a robust pipeline from both countries into the future. This is hugely important for the prospects for prosperity regionally — and even globally: Bns of USD are being raised internationally to drive long-term investment in the region.

Portfolio investors see the robust pipeline of stock market listings; home-grown companies are investing to expand and diversify internationally; overseas corporates are seeking access to the region’s fast-growing consumer sector and the digital economy; and other clients are focused on the progress being made in the region’s transition to net zero.

In short, investors increasingly view the Middle East as a safe and reliable opportunity as well as a region that is open and eager for business.

We see this across our business, but nowhere is it clear than in our markets and securities services business, which in 1Q 2022 had its best quarter on record. HSBC has been involved in nearly all the IPOs of the past year: We helped clients in the region raise more than USD 19 bn from investors worldwide in 2021 — and more than USD 15 bn in the first half of this year.

There are many drivers of the current IPO boom. Stronger energy prices have created liquidity which, when combined with reform and deregulation in the region that has happened against a backdrop of economic challenge elsewhere in the world, has created an ideal environment for new listings.

This trend is particularly apparent in Saudi Arabia, where total foreign ownership of Saudi equities currently stands at USD 95 bn (including strategic investments). Meanwhile, consistently strong demand from international investors for IPOs in the UAE has been a key factor in substantial over-subscriptions for new share listings throughout 2022.

Egypt is getting ready to ride the wave. The government aims to attract USD 40 bn in investment over four years through privatizations under plans to reinvigorate the Egyptian stock exchange and encourage more international investor participation in the market.

The Sovereign Fund of Egypt has set up a pre-IPO fund to prepare state-owned enterprises for listing on the EGX, and stock market regulations have been amended to encourage companies to list.

Growth and optimism in the Middle East can help global investors weather the challenges they face elsewhere.

It is also a great opportunity for Middle Eastern companies and economies to take a leadership role in tackling those challenges — in every sector from food, energy, and supply chain logistics, to climate change, and the journey to Net Zero.

The fact that the next two UN Climate Change Conferences — COP27 and COP28 — are taking place in Egypt and the UAE shows how much the world is looking to our region for solutions and innovations in tackling pressing social and economic challenges.

Samer Deghaili (LinkedIn) is co-head of capital financing and investment banking coverage (CFIBC) and head of capital markets (MENAT), HSBC Bank Middle East Ltd.