Middle East Bankers Eye Flurry of IPOs to Salvage Slow First Half

Bankers across the Gulf anticipate a surge in initial public offerings over the coming months, aiming to offset a sluggish first half that was disrupted by Ramadan’s overlap with March, followed by heightened volatility tied to US tariffs and escalating regional tensions. They project that this end-of-year activity will allow the UAE to rival Saudi Arabia in dollar-volume IPO activity.

Arabian bankers expect Middle East dealmaking surge to end year strong and raise ambitions as construction giant Alec, backed by Dubai authorities, is preparing to launch its IPO, targeting up to $500 million in mid-2025. The Investment Corporation of Dubai is leading this drive, with Alec seen as a flagship offering in the government’s push to list more state-linked companies. Already one of the UAE’s largest construction firms, Alec is known for major projects such as the One Za’abeel towers in Dubai and contracts at Saudi Arabia’s Qiddiya development.

Following close behind is Dubizzle Group, the UAE’s largest online classifieds platform. Recent acquisitions—most notably Property Monitor, which delivered a 55 per cent revenue CAGR from 2022–2024—have strengthened its equity story ahead of a highly anticipated IPO that could raise between $500 million and $1 billion. The deal could be launched on either the DFM or ADX, with preparations now underway.

In Saudi Arabia, three IPOs must clear regulatory hurdles before year-end—or risk losing their approval windows. Cherry Trading Company, a car rental operator, received approval for its IPO in June, with a prospectus to follow ahead of its six-month validity window. Al Ramz Real Estate Company similarly gained clearance at the end of June to offer 30 percent of its capital publicly, with roughly the same six-month timeframe to complete the listing. CGS, a prominent refrigeration and cold-chain logistics group, alongside Al Ramz, was among the three IPOs cleared by the regulator in mid-July. CGS employs around 750 people across Saudi Arabia and Bahrain, and the approvals for both firms share the same six-month window for execution.

Regulatory momentum across Saudi Arabia remains robust. Capital inflows into IPOs have stayed strong, supported by a deepening institutional investor base, vibrant retail participation, and a regulatory regime that promotes liquidity through market-making rules. Qualified Foreign Investor registrations have surged, and oversubscription levels in retail tranches remain high.

In the UAE, while only two IPOs have gone ahead so far this year—Alpha Data and Dubai Residential REIT—analysts expect momentum to pick up in the coming months. Citi and other advisors forecast up to five additional listings before year-end, with Alec and Dubizzle prominent among them.