Small-caps have faced headwinds in recent years as investors concentrated on large-cap and mega-cap names. But with valuations now lower and growth potential intact, they may represent an important opportunity for long-term, disciplined investors.
What matters most is timing and structure. Small-caps tend to outperform when confidence is high and financing conditions are supportive. With rate cuts expected on the horizon and regional markets continuing to mature, selective exposure to high-quality small-caps could reward patient investors.
At STP Partners, we see this as an encouraging sign of markets in transition — with clear momentum toward broader participation. Continued digitisation, thoughtful allocation policies, and easing access for individuals (including non-residents) will help strengthen depth and resilience over the long term.
As Gulf markets continue to deepen with both IPOs and secondary offerings, one key question is how retail participation is evolving.
This recent analysis from AGBI — “Retail Investors Edged Out of Region’s Equity Rush” — sheds light on the dynamic between institutional allocations and retail demand across the UAE and Saudi Arabia. It’s clear that while institutions remain central to large share sales, retail appetite is both strong and growing.
📊 Highlights from the piece:
UAE IPOs such as PureHealth and Dubai Taxi have shown extraordinary oversubscription from retail investors, underscoring robust demand.
Saudi Arabia continues to broaden retail involvement, with millions of individual Tadawul accounts and sizeable retail tranches in landmark offerings like Aramco’s.
At the same time, many transactions remain institution-heavy, reflecting the balance between stability, liquidity, and inclusivity.
At STP Partners, we see this as an encouraging sign of markets in transition — with clear momentum toward broader participation. Continued digitisation, thoughtful allocation policies, and easing access for individuals (including non-residents) will help strengthen depth and resilience over the long term.
Our CEO Tony Hallside told The National News that the resurgence of meme stocks reflects a broader wave of investor confidence, powered by strong markets, record highs for Bitcoin, and cooling inflation. While the “risk-on” mood is real, he warns that markets remain vulnerable to shocks and that complacency can be dangerous. It’s like driving under clear skies, enjoy the ride, but keep your seatbelt on. His message is simple - stay alert, avoid the herd mentality, and always ask what happens if the music stops.
H1 2025 has been a rollercoaster for investors. We have been having a lot of conversations lately with investors trying to make sense of this market, especially as we have moved to the second half of the year.
One thing is clear from these conversations - this isn’t the time to chase trends or overreact to noise. In my latest editorial with Gulf Business, I share why discipline, fundamentals, and a clear macro lens are key to navigating what’s ahead.
The latest piece from The National highlights key insights into what’s driving current sentiment in the stock market—from inflation expectations to Fed policy signals. It’s a timely read for anyone navigating today’s investment climate.
At STP Partners, we constantly remind our clients that volatility often reveals opportunities—as long as you stay informed and keep your strategy disciplined.
