MENA listings drought deepens

MENA equity issuance fell sharply in the first quarter, with companies raising just $472.9 million from equity and equity-linked deals, a drop of 91% from a year earlier, as regional volatility, weak risk appetite and a thinner pipeline combined to stall activity across primary markets. The quarter produced only five transactions, according to LSEG’s MENA Investment Banking Review for the first three months of 2026.

Only four companies made their market debut across the region during the period, down from 12 flotations in the same quarter last year. Those listings raised a combined $296.6 million, making it the weakest opening quarter for IPO proceeds in MENA since 2018. The scale of the slowdown marks a sharp reversal from the stronger conditions seen a year earlier, when first-quarter issuance in the region had climbed above $4.7 billion.

The decline reflects more than a statistical swing from a high base. Bankers and investors have spent much of the year navigating market turbulence tied to conflict in the Middle East, disrupted shipping routes and abrupt moves in commodity prices, all of which have made issuers and investors more cautious about new equity risk. Reuters reported this month that companies in several markets had delayed IPOs or cut shareholder payouts as the conflict rattled sentiment and made price discovery harder.

That caution has not been confined to MENA. Globally, parts of the IPO market also struggled for momentum through February and March as bouts of volatility linked to geopolitical tensions and broader market nerves sidelined some issuers, even while merger activity and trading revenues held up for large international banks. That divergence matters for the region because it suggests the problem is not a total shutdown of capital markets, but a sharper aversion to equity issuance in markets seen as more exposed to swings in oil, shipping and politics.

The first-quarter numbers also underline how dependent the region’s equity pipeline remains on a relatively small pool of large offerings, particularly in Gulf markets. When a handful of big listings are delayed, the quarterly tally can fall abruptly. That vulnerability had already been visible at the start of the year, when market participants were still arguing that 2026 could see a rebound as postponed deals returned. Instead, the opening months brought another bout of uncertainty that pushed issuers back to the sidelines.

This matters beyond league tables. A weak IPO window can slow privatisation plans, delay fundraising for family-owned companies and reduce opportunities for regional exchanges trying to deepen liquidity and sector diversity. For investors, fewer deals mean less access to new listings at a time when Gulf exchanges have been trying to broaden participation and attract more international capital. The slowdown also raises questions about how much of the post-pandemic listings surge in the Gulf was driven by exceptional conditions rather than a permanently deeper market.

There are, however, signs that capital markets activity in the region has not frozen across the board. Debt issuance has remained more resilient than equity in periods of stress, and parts of the broader funding landscape are still functioning. Outside public equity markets, startup funding in MENA reached $941 million in the first quarter, down year on year but still showing that private capital continued to find selected opportunities, even as March itself turned notably weak. That split reinforces the view that investors have become highly selective rather than wholly absent.

The same pattern can be seen in public debt markets. Reuters reported this week that Morocco’s OCP raised $1.5 billion in a hybrid bond, drawing nearly $7 billion in orders, a sign that investors remain willing to back large regional names with familiar credit stories even amid tension and disrupted trade routes. Equity issuance, by contrast, depends more heavily on confidence in valuation, growth and aftermarket performance, making it more vulnerable when sentiment weakens.