UAE IPO Market Set to Diversify as Tech Startup Cafu Eyes Public Listing

According to Bloomberg reports, Cafu — founded in 2018 by Emirati tech entrepreneur Rashid Al Ghurair — is in early discussions with financial advisory firm Lazard Ltd. to explore an initial public offering (IPO). Although final decisions are pending, the development reflects a growing appetite for tech-driven IPOs in the UAE’s maturing capital markets.

A Game-Changer for the UAE’s IPO Landscape

Cafu’s anticipated market debut would introduce a new digital dimension to the UAE’s stock exchanges. Historically, the nation’s IPO scene has been shaped by heavyweights in oil, property, and retail sectors. Tech listings like Cafu's could diversify investor portfolios and demonstrate the UAE's commitment to fostering a thriving startup ecosystem.

“Cafu’s market entry would signal a new era for IPOs in the region,” noted Vijay Valecha, Chief Investment Officer at Century Financial. “It showcases the Gulf’s evolving entrepreneurship and innovation landscape.”

Since its inception, Cafu has revolutionized the fuel delivery market by offering petrol and diesel at standard pump prices without any markup. During the pandemic, Cafu even waived its nominal delivery fees to ease customer burdens, strengthening its market position. Recently, it reintroduced a tiered fee structure:

• Dh20 for priority delivery (within 20 minutes)

• Dh16 for standard delivery (within 30 minutes to two hours)

• Dh12 for overnight service (midnight to 6 a.m.)

This pricing shift reflects Cafu’s strategy to balance operational profitability while maintaining customer-centric offerings.

Beyond Fuel: Expanding into New Services

Cafu has steadily broadened its services beyond fuel delivery. Today, the company offers mobile car washes, battery replacements, tyre changes, engine oil services, emergency rescue operations, and electric vehicle charging. Additionally, Cafu caters to the maritime sector by delivering fuel directly to boats at selected Dubai marinas.

Internationally, Cafu has expanded into Canada, signaling its ambition to establish a global footprint. The startup has also diversified revenue streams through third-party advertising and customer loyalty programs integrated into its app — enhancing its financial sustainability ahead of a potential IPO.

Lazard's Growing Role in the Region

For Lazard, advising Cafu’s public listing represents a strategic move to strengthen its influence in the Gulf’s financial advisory space, traditionally dominated by firms like Rothschild. A successful IPO would underscore Lazard’s commitment to the region’s fast-evolving capital markets.

UAE IPO Market Remains Robust

The UAE’s IPO activity has witnessed unprecedented momentum. In 2024 alone, the Gulf region recorded its highest IPO volumes ever, with 53 listings raising $13.2 billion, according to a PwC report. The UAE accounted for nearly half of the region’s proceeds, driven by high-profile listings such as Talabat Holding, Lulu Group, and NMDC Energy.

Looking ahead, banking analysts project up to eight UAE IPOs in 2025, potentially raising around $10 billion. Companies like Etihad, Dubizzle, and Noon.com are reportedly preparing their listings, with Alpha Data's strong market debut setting an optimistic tone for the year.

A New Chapter for Tech Startups

Cafu’s potential IPO aligns with the UAE’s broader national strategy to cultivate a knowledge-driven economy, reduce oil dependence, and position itself as a global innovation hub. With progressive policies, robust infrastructure, and vibrant capital markets, the UAE continues to attract global investors and tech entrepreneurs.

While specific details regarding Cafu’s IPO — including stake size, valuation, and launch timeline — are still under wraps, its potential listing is poised to inspire a wave of tech startups to enter the UAE’s public markets.