The Investment Corporation of Dubai (ICD), the main investment arm of the emirate’s government, is exploring the possibility of entering capital markets with a series of initial public offerings within the next year, as suggested by analysts. ICD, established in 2006, boasts a valuation of approximately $340 billion and already has Emirates NBD, the largest bank in Dubai by assets, listed on the Dubai Financial Market (DFM).

Over the past five years, shares in Emirates NBD have seen remarkable growth, nearly tripling with an increase of 174 percent. The upcoming IPO of Alec Engineering, a construction company that ICD acquired from Abu Dhabi’s Al Jaber Group in 2017, is expected to take place in June, aiming to raise around $500 million.

ICD’s portfolio includes notable assets such as Emirates Airlines, the world’s third-largest airline by scheduled revenue passenger-kilometres flown. Vijay Valecha, chief investment officer at Dubai-based Century Financial, remarked that the fund could capitalize on the ongoing Gulf IPO boom to monetize and list its existing holdings, particularly looking at firms within the transportation sector for potential sales.

In the UAE, food delivery company Talabat had the largest IPO last year, raising AED7.5 billion ($2 billion) prior to its listing on the DFM. Other significant IPOs included UAE public parking operator Parkin, which raised AED1.57 billion, and supermarket chain Spinneys, which raised AED1.38 billion. However, none of these companies are affiliated with ICD.

Discussions about an IPO for Emirates Airlines often arise, but its chairman, Sheikh Ahmed bin Saeed Al Maktoum, consistently states, “If they tell me to do it, I will.” Meanwhile, Abu Dhabi’s Etihad Airways is anticipated to announce its IPO soon, according to reports from Reuters.

ICD possesses a range of other assets that could be partially or fully sold off, including low-cost airline Flydubai, aviation services company Dubai Aerospace Enterprises, and Dnata, a subsidiary of Emirates Group. Steve Allen, Dnata’s CEO, previously indicated that good financial results would make the company an attractive candidate for an IPO.

Transportation accounted for nearly half, or 47 percent, of ICD’s revenue in 2023, contributing to about one-third of its profit, which was nearly AED61 billion that year. Rachel Ziemba from Ziemba Insights noted that the feasibility of ICD’s IPOs will hinge on the performance of these companies and the overall liquidity situation in the market.

Other potential IPO candidates from ICD’s portfolio include Dubai Duty Free, Ducab, and Emirates Global Aluminium, the largest non-oil company in the UAE and a major aluminum producer globally. Despite its focus on Dubai, ICD also maintains investments across 80 countries, including regions in Europe, Asia, Africa, and North America.

Robert Mogielnicki, a scholar at the Arab Gulf States Institute in Washington, highlighted that ICD will need to navigate uncertain macroeconomic conditions, particularly with rising concerns over the impact of tariffs in various markets.