Saudi Arabia's Knowledge Economic City Company (KECC) was the largest initial public offering (IPO) in the Gulf region during the first half of this year, making the Kingdom the major source of IPOs in the region during the six-month period. KECC raised $272 million, which is equivalent to 32.7 percent of the total capital generated by IPOs during the first six months of 2010, according to PricewaterhouseCoopers (PwC), a professional services organization. KECC, for which total investment is expected to reach $7 billion, will, when completed, play a major role in transforming Saudi Arabia into a global force in the knowledge-based industry. According to the Saudi Arabian General Investment Authority, KECC will have the following components: Taiba Complex for Technology and Knowledge-based Economy, technological and administrative colleges, theme parks, Islamic Civilization Studies Center, complex for medical studies, biological sciences and health services, complete business center, residential areas, passenger station, commercial area, and King Abdul Aziz Mosque. On a regional basis, the value of the investment raised by IPOs during the first six months of 2010 amounted to $830 million, which was 31.4 percent lower than the $1.209 billion reached during the same period in 2009. IPOs in the GCC are expected to increase toward the end of 2010 and into 2011, according to Steve Drake, Head of Middle East Capital Markets Group of PricewaterhouseCoopers.
