GCC IPO Fundraising Declines to $5.1 Billion in 2025, with Saudi Arabia Leading the Market

In 2025, the proceeds from initial public offerings (IPOs) in the Gulf Cooperation Council (GCC) region experienced a significant decline, dropping by 61% to $5.1 billion. A report by Markaz highlighted that Saudi Arabia was the primary contributor, accounting for 79% of the total funds raised. The report, titled "Initial Public Offerings in the GCC Markets," noted that the region saw 40 IPOs in 2025, which is a decrease from the 53 offerings that generated $13.2 billion in the previous year. Corporate IPOs made up a substantial portion of the total proceeds, amounting to $3.9 billion, or 76%, from 37 offerings. The remaining 24% came from government-related entities, which raised $1.2 billion through three offerings. Saudi Arabia emerged as the leader in IPO proceeds, raising $4.1 billion, which represented a significant majority of the regional total. The Saudi Exchange (Tadawul) recorded 13 IPOs on its Main Market, generating $3.7 billion, while the Parallel Market (Nomu) hosted 23 IPOs that raised $336 million. In contrast, the United Arab Emirates had two IPOs, with the Abu Dhabi Securities Exchange raising $163 million and the Dubai Financial Market generating $381 million. Oman contributed $333 million, or 7% of the total GCC proceeds, through the Asyad Shipping Company IPO on the Muscat Securities Market. Kuwait's Action Energy Company IPO in the last quarter of the year raised $180 million, accounting for 4% of the total proceeds. The Industrials sector was the most prominent in fundraising for 2025, raising $1.9 billion, nearly 37% of the total. The largest single contribution came from Flynas in Saudi Arabia, which raised $1.1 billion. The Real Estate sector followed closely, generating $1.2 billion from seven IPOs, including notable listings such as Umm Al Qura for Development and Construction. Markaz indicated that the top-performing IPOs of the year benefited from favorable pricing and strong liquidity post-listing, particularly in sectors with clear growth potential. The Ratio Specialty Company, listed on Nomu in March 2025, saw its shares rise by 190% from the offering price. Conversely, some IPOs struggled due to overvaluation and limited liquidity, with Smoh Almadi experiencing a 60% decline from its offering price. Most GCC equity indices concluded 2025 on a positive note, with the Muscat Securities Market achieving a notable 28.1% gain, followed by Boursa Kuwait at 25.3%. However, the Saudi Tadawul saw a decline of 12.8% over the year. Looking ahead, Markaz anticipates an increase in GCC IPO activity in 2026, driven by stable global interest rates and ongoing divestment initiatives, which may attract a wider array of companies to consider public offerings.

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