The UAE’s dynamic initial public offering (IPO) landscape is set to potentially include a new entrant, as Cafu, a prominent fuel delivery application, is reportedly considering a stake sale that could lead to its listing on the UAE stock exchanges.
As reported by Bloomberg, the startup, established in 2018 by Emirati entrepreneur Rashid Al Ghurair, is currently in preliminary talks with Lazard Ltd. to assist with the anticipated IPO. Although no definitive agreements have been reached, this move highlights the UAE’s increasing attractiveness as a center for varied, technology-driven public offerings.
A potential IPO for Cafu would introduce a digital technology aspect to the UAE’s IPO scene, which has mainly featured leaders in the energy, real estate, and retail sectors.
According to Vijay Valecha, chief investment officer at Century Financial, “Cafu’s market entry would enrich the UAE’s IPO spectrum, reflecting the region’s developing startup ecosystem.” Since its launch, Cafu has pioneered the combination of conventional services with digital solutions, paving the way for new entrants in the tech market of the Gulf.
Cafu has transformed the fuel delivery sector by offering petrol and diesel at prices comparable to those at gas stations, without any additional fees. Initially launching with a modest delivery charge (between Dh10 and Dh20), the company opted to remove these fees during the pandemic to assist its customers. Recently, however, a new notice indicated the reinstatement of tiered delivery charges: Dh20 for priority delivery (within 20 minutes), Dh16 for standard delivery (30 minutes to two hours), and Dh12 for overnight service (midnight to 6 a.m.). These updates illustrate Cafu’s intention to achieve a balance between profitability and customer value.
In addition to fuel delivery, Cafu has branched out into mobile car washes, battery replacements, tire changes, engine oil services, emergency assistance, and electric vehicle charging. The company also serves maritime clients, providing fuel to boats and vessels at selected Dubai marinas. With operations in Canada, Cafu is endeavoring to establish a presence beyond the Gulf. Other revenue sources include third-party advertising and loyalty programs within the app, enhancing its financial sustainability.
For Lazard, which recently opened an office in the UAE, advising Cafu on its IPO could solidify its position in a region where rivals like Rothschild have historically dominated. A successful deal would underline Lazard’s advancing role in the Gulf’s competitive advisory sector.
The IPO market in the UAE has experienced significant growth recently, fueled by the country’s economic diversification and strong investor interest. In 2024, the Gulf region achieved its highest IPO volumes to date, with 53 listings raising $13.2 billion, according to a report by PwC. The UAE accounted for 47 percent of the region’s proceeds, with seven IPOs—including Talabat Holding, Lulu Group, and NMDC Energy—raising a total of $6.2 billion.
This year, banking sources estimate that up to eight IPOs in the UAE could raise approximately $10 billion, with notable companies such as Etihad, Dubizzle, and Noon.com in the pipeline. The first IPO of 2025, Alpha Data, has already set a positive precedent.
Cafu’s potential public offering aligns with the UAE’s broader economic objectives to promote innovation and lessen dependence on oil. As the second-largest economy in the Arab world, the UAE has attracted global investors through its favorable business environment and vibrant capital markets. The Dubai Financial Market and Abu Dhabi Securities Exchange have become key destinations for firms looking to leverage the region’s liquidity and growth opportunities. While specifics regarding Cafu’s IPO—including the size of the stake, valuation, and timeline—have yet to be revealed, its move into the public market may encourage other tech startups to pursue similar paths.