GCC IPO fundraising drops to $5.1bn in 2025 as Saudi listings dominate

Despite the downturn, Saudi Arabia continued to dominate regional listings, while the GCC IPO pipeline is expected to strengthen in 2026.

In its report titled Initial Public Offerings in the GCC markets, Markaz said the region recorded 40 IPOs in 2025, raising total proceeds of $5.1bn.

This represents a 61 per cent decrease compared to the previous year, when issuers raised $13.2bn through 53 offerings.

Corporate IPOs accounted for $3.9bn, or 76 per cent of total GCC proceeds, across 37 offerings. IPOs by government-related entities contributed the remaining 24 per cent, raising $1.2bn through three offerings.

GCC IPOs

Saudi Arabia led the GCC in IPO proceeds, raising $4.1bn, equivalent to 79 per cent of total regional proceeds. The Saudi Exchange (Tadawul) recorded 13 IPOs on its Main Market, raising $3.7bn, alongside 23 IPOs on its Parallel Market (Nomu), which generated $336m.

The UAE saw two IPOs during the year. The Abu Dhabi Securities Exchange raised $163m through Alpha Data’s IPO, while the Dubai Financial Market raised $381m via the Alec Holdings IPO.

Oman raised $333m, or 7 per cent of total GCC proceeds, through the Asyad Shipping Company IPO on the Muscat Securities Market. Kuwait recorded the IPO of Action Energy Company in the final quarter of the year, raising $180m, representing 4 per cent of total GCC proceeds.

The Industrials sector led fundraising in 2025, raising $1.9bn and accounting for nearly 37 per cent of total proceeds. The largest contribution came from Saudi Arabia’s Flynas, which raised $1.1bn.

Real Estate followed with $1.2bn, or 23 per cent of total proceeds, across seven IPOs including Umm Al Qura for Development and Construction and Dar Al Majed Real Estate Company.

The Healthcare sector raised $508m, representing 10 per cent of total proceeds, through three IPOs from SMC Hospitals on Tadawul’s Main Market and Basma Adeem and Wajd Life Trading Company on Nomu.

Consumer Discretionary companies raised $479m, or 9 per cent of total proceeds, through 10 IPOs, all in Saudi Arabia. Financial Services raised $400m via Derayah Financial Company’s IPO on Tadawul, accounting for 8 per cent of GCC proceeds. Technology, Energy, Materials and Consumer Staples represented 4 per cent, 4 per cent, 3 per cent and 3 per cent of total offerings respectively.

Post-listing performance

Markaz noted that the top-performing IPOs of 2025 benefited from attractive offer pricing, strong post-listing liquidity and exposure to sectors with clear growth or defensive characteristics. Listings on Tadawul’s Main Market and Nomu were supported by broad investor participation and sustained demand.

The strongest performer was Ratio Specialty Company, listed on Nomu in March 2025, with shares rising 190 per cent from their offering price of SAR 10 ($2.67).

Conversely, some IPOs delivered negative performance due to overvaluation, limited liquidity and exposure to low-growth or margin-pressured sectors. The weakest performer was Smoh Almadi, listed on Nomu in January 2025, with shares falling 60 per cent from their offering price of SAR 22 ($5.87).

GCC equity markets in 2025

Most GCC equity indices ended 2025 in positive territory. The Muscat Securities Market outperformed regional peers with a 28.1 per cent gain, followed by Boursa Kuwait, which rose 25.3 per cent. Dubai Financial Market increased by 17.2 per cent, while the Abu Dhabi Exchange gained 6.1 per cent. Bahrain Bourse and the Qatar Stock Exchange recorded gains of 4.1 per cent and 1.8 per cent respectively.

In contrast, Saudi Tadawul declined by 12.8 per cent over the year.

IPO pipeline outlook

Markaz said GCC IPO activity is expected to increase in 2026 compared with 2025, supported by stable global interest rates and ongoing divestment initiatives.

With strengthening investor confidence and evolving regulatory frameworks, the region is likely to attract a broader range of companies preparing for public offerings.