GCC IPO Momentum Expected to Continue in 2025

The GCC equities markets saw a spike in IPO activity in 2024, with a record 53 companies making their debut on regional exchanges.

According to Kuwait-based Kamco Invest, the aggregate GCC index increased little for the second straight year, owing to external concerns like as geopolitical tensions, falling oil prices, and rising interest rates, but the IPO market remained resilient.

The GCC IPO market had considerable demand from local investors in 2024, with many offers heavily oversubscribed. Companies in specialist areas such as software, healthcare, and utilities, which have excellent fundamentals and high dividend yields, frequently outperform. Government privatisation measures, particularly in Saudi Arabia and Oman, have continued to drive IPO activity.

Saudi Arabia topped the pack in terms of IPOs, with 42 firms listed on both the Nomu Parallel Market and the Main Market. However, the UAE retained its lead in terms of IPO proceeds, raising $6.2 billion. Oman notably contributed to the overall revenues by successfully listing two state-owned energy enterprises, OQ Exploration & Production and OQ Base Industries, which raised a combined $2.5 billion.

Looking ahead to 2025, the region has a strong pipeline of possible IPOs, including high-profile companies like Flynas and Tabby in Saudi Arabia, and Etihad Airways and Dubai Holdings in the UAE.

While the Americas and Europe, the Middle East, India, and Africa (EMEIA) regions expanded, the Asia Pacific region contracted significantly. The United States emerged as the leading market in terms of IPO proceeds, while India dominated in terms of number of transactions.