Saudi Arabia is poised to lead the Middle East and North Africa region in initial public offerings in 2025, with 27 companies planning to list on its stock exchange. This surge underscores the Kingdom’s efforts to diversify its economy and strengthen its capital markets.
According to a report by EY, the MENA region anticipates 38 company IPOs and 22 fund listings in 2025, spanning various sectors. The United Arab Emirates is expected to contribute three company listings, while Qatar has one IPO in the pipeline. This optimistic outlook persists despite geopolitical challenges in the region.
Mohammed Al-Rumaih, CEO of the Saudi stock exchange, expressed confidence in achieving a record number of listings in 2025. He highlighted the significant role of private entities in this growth, indicating a maturing capital market in the Kingdom. Al-Rumaih noted that the exchange is expanding its investor base, particularly among qualified financial investors, aiming to internationalize and institutionalize the market.
Notable companies considering IPOs include Etihad Airways PJSC, Amanat Holdings, and Panda Retail Company. Etihad Airways, owned by Abu Dhabi’s sovereign wealth fund ADQ, plans to go public no earlier than 2025, aiming to present robust financial results and navigate regional geopolitical considerations. The airline’s “Journey 2030” strategy focuses on enhancing Abu Dhabi’s status as a travel hub connecting Asia and Europe, with goals to expand destinations to over 125 airports and increase its fleet to more than 160 aircraft by 2030.
In the private sector, companies such as low-cost carrier Flynas, buy-now-pay-later firm Tabby, and IT company Ejada Systems are exploring IPOs. Flynas, backed by Prince Alwaleed Bin Talal’s Kingdom Holding, aims to list in Riyadh, with its valuation estimated at at least $2 billion. These moves align with Gulf governments’ strategies to diversify their economies away from oil by investing in tourism and aviation.
The UAE’s IPO landscape is also vibrant, with companies like Talabat, a Middle East-based food delivery company under Delivery Hero, raising $2 billion in Dubai’s largest IPO of the year. This highlights the UAE’s dominance in fundraising through IPOs in the Europe, Middle East, and Africa region for the third consecutive year. Dubai’s growing attractiveness as a financial hub has prompted such listings, with recent successes including Abu Dhabi’s state energy company and supermarket chain Lulu Retail.
The Gulf Cooperation Council exchanges witnessed a record number of IPOs in the fiscal year 2024, with 53 listings across the region. Looking ahead to 2025, the region is expected to maintain strong IPO momentum, driven by continued government initiatives, increased foreign investor interest, and new listings in high-growth sectors such as technology, healthcare, and renewable energy.
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