Dubai announces plans to list utility DEWA in the ‘coming months’

The Dubai government has announced plans to list utility Dubai Electricity and Water Authority (DEWA) in the “coming months”, the emirate’s Deputy Ruler and Deputy Prime Minister and Minister of Finance announced on Tuesday.

“We announce today our intention to list the Dubai Electricity and Water Authority in the Dubai Financial Market in the coming months,” Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum confirmed on Twitter.

“DEWA is a key pillar of the development in Dubai. Investing in DEWA is an investment in Dubai’s future,” he said.

بتوجيهات محمد بن راشد آل مكتوم ومتابعة حمدان بن محمد حفظهم الله، وضمن الرؤية التطويرية التي اعتمدناها في لجنة تطوير أسواق المال والبورصات في دبي نعلن اليوم عن توجهنا لإدراج هيئة كهرباء ومياه دبي في سوق دبي المالي خلال الأشهر القادمة.

— Maktoum Bin Mohammed (@MaktoumMohammed) November 2, 2021

The listing will be carried out gradually due to DEWA’s huge asset portfolio, a statement said.

The announcement comes after Dubai announced earlier this week that it would list 10 government and state-owned companies on DFM as part of accelerating new listings in various sectors including energy, logistics and retail.

The Securities and Exchange Higher Commission aims to increase the size of the stock market in the emirate to Dhs3 trillion, raise the competitiveness of bourses and encourage initial public offerings (IPOs).

The DEWA listing, which will allow investors to access shares in profitable companies, “will support the financial markets in the emirate”, the statement added.

Saeed Mohammed Al Tayer, MD and CEO of DEWA stressed that the utility has diversified its sources of income through projects in various fields in the energy and water sectors.

“DEWA enjoys a strong financial performance backed by investment in assets aggregating nearly Dhs200bn. We have more than one million customers, with around 7 per cent annual increase in the number of new accounts.

“We have projects valued at around Dhs86bn that are planned to be commissioned in the next five years, to meet the increasing demand for electricity and water in the emirate. This is achieved through a clear strategy and a roadmap to transform Dubai into a center of excellence for new technologies necessary to achieve net zero emissions and reach 100 per cent clean energy by 2050,” he said.

Al Tayer also confirmed that it has attracted about Dhs40bn from investors via its Independent Power Producer (IPP) model primarily in the areas of renewable and clean energy.

“With its portfolio of diversified projects, DEWA is transforming Dubai into a global hub for clean energy, using different disruptive technologies, with a focus on diversifying the energy mix,” he added.

Al Tayer noted that the listing will help DEWA expand its scope of work and contribute to providing new jobs for Emiratis, support the business sector and strengthen strategic partnerships between the public and private sectors.