IPO activity across the Gulf Cooperation Council (GCC) countries took a sharp downturn in 2025, with total proceeds falling by 61% compared to the previous year. Despite this, Saudi Arabia continued to lead the region, accounting for 79% of the total IPO proceeds.
According to a report from the Kuwait Financial Centre (Markaz), 40 IPOs were recorded in the GCC markets in 2025, raising a total of $5.1 billion. This marked a significant drop from 2024, when issuers raised $13.2 billion through 53 offerings.
Saudi Arabia Leads in IPO Proceeds
Saudi Arabia’s stock market, the Saudi Exchange (Tadawul), was the standout performer in the region, raising $4.1 billion through 13 IPOs on its Main Market and 23 IPOs on its Parallel Market (Nomu). The country’s IPO activity continued to dominate, with sectors like industrials, real estate, and consumer discretionary leading the way.
The UAE, while trailing Saudi Arabia, saw two notable IPOs in 2025. The Abu Dhabi Securities Exchange raised $163 million through the IPO of Alpha Data, while the Dubai Financial Market raised $381 million with Alec Holdings’ IPO. Meanwhile, Oman raised $333 million through the Asyad Shipping Company IPO.
Sector Breakdown of IPO Proceeds
The industrials sector emerged as the top contributor to GCC IPO proceeds in 2025, raising $1.9 billion, or 37% of the total. Saudi Arabia’s Flynas, a budget airline, led the sector with an impressive $1.1 billion raise.
Real estate came second, with $1.2 billion (23% of total proceeds) raised from seven IPOs, including Umm Al Qura for Development and Construction. The healthcare sector also showed strong performance, raising $508 million through three offerings.
Strong IPO Performance and Market Growth
Markaz highlighted that the strongest IPO performers in 2025 benefited from attractive offer pricing and strong post-listing liquidity. The most notable performer was Ratio Specialty Company, listed on Tadawul’s Nomu Market in March, with shares rising 190% from their offering price.
However, not all IPOs fared well. The weakest performer, Smoh Almadi, saw its shares drop by 60% after being listed on Nomu in January 2025, highlighting the risks of overvaluation and limited liquidity in some IPOs.
GCC Equity Markets and Future Outlook
Despite the overall decline in IPO proceeds, most GCC equity indices posted positive gains in 2025. The Muscat Securities Market led the region with a 28.1% increase, followed by Kuwait’s Boursa with a 25.3% gain. The Dubai Financial Market rose 17.2%, while the Abu Dhabi Exchange increased by 6.1%.
Markaz projects that IPO activity in the GCC will increase in 2026, driven by stable global interest rates and ongoing divestment efforts. With strengthening investor confidence and regulatory improvements, the region is expected to attract a wider range of companies looking to go public.
