Saudi Arabia To Lead Regions Initial Public Offerings In 2025 — EY

RIYADH: The outlook for initial public offerings in the Middle East and North Africa region remains positive in 2025, with Saudi Arabia leading the market with 27 potential listings, according to an analysis. 

In its latest report, professional services network firm EY said the overall MENA region was expected to witness the listing of 38 companies and 22 funds in 2025, across a variety of sectors. Three listings are in the pipeline of the exchanges in the UAE, while Qatar is expected to witness one IPO. 

This comes as the Gulf Cooperation Council region has emerged as a hotspot for IPOs in recent years, fueled by robust economic reforms, diversification efforts away from oil dependence, and growing interest from both regional and international investors. 

“The region continues to drive positive developments in areas such as governance and ESG to enhance its attractivity to local and international investors alike,” said Gregory Hughes, EY MENA IPO and transaction diligence leader. 

According to the analysis, Panda Retail Co. and Riyad Capital from Saudi Arabia, as well as Etihad Airways and Amanat Holdings from the UAE, are the notable companies considering an IPO in 2025. 

Outside the GCC region, Egypt has announced five IPOs for 2025, while Algeria has two businesses intending to list. 

In December, the Egyptian Cabinet announced plans to accelerate the government offerings program procedures in 2025 to maximize the private sector’s economic role and attract more investments. 

The move from the government aligns with the nation’s broader effort to expand the number of publicly traded companies and attract greater investment. 

The EY report set out how ESG goals remain “a priority” in the Middle East, and this will have an impact on potential IPOs.

It cited a new law in the UAE, set to come into force in May, requiring companies to report carbon emissions and adopt decarbonization strategies — including renewable energy and carbon offsetting. It sets penalties for noncompliance and encourages research and development. It also promotes carbon trading through a dedicated registry. 

“These measures align with the UAE’s 2050 net zero goals and are likely to influence IPO market dynamics, as companies prioritize sustainability to attract investors,” said the report.

The expected listings activity in the Gulf is in line with global forecasts, with the IPO market on track for a “strong performance” in 2025, according to EY.

“This is supported by a cautiously optimistic economic environment, increasingly accommodative monetary policies, heightened liquidity, valuation levels and investor confidence,” the report added.

The firm said that while there were challenges — particularly around fiscal and monetary policies, geopolitical tensions, artificial intelligence and digital transformation — they also “open the door to new opportunities.” 

EY called on businesses to focus on adapting their strategies to align with shifting market demands and “leveraging IPOs as a platform to drive growth and innovation.”

MENA IPO activity in 2024

EY revealed that markets in the MENA region witnessed a total of 54 IPOs in 2024, representing a 12.5 percent rise compared to 2023. 

These IPOs raised $12.6 billion in proceeds, also marking a 17.6 percent rise compared to the previous year. 

The year-on-year increase in proceeds for 2024 was impacted by a number of large-value IPOs such as Talabat Holding plc, OQ Exploration & Production and Lulu Retail Holdings that were listed during the last quarter of the year. 

The region continues to drive positive developments in areas such as governance and ESG to enhance its attractivity to local and international investors alike.

Gregory Hughe, EY MENA IPO and transaction diligence leader

“The year 2024 ended on a strong note with 54 IPOs in total, the highest in MENA over the past seven years. The region has been one of the busiest when compared to the global market,” said Brad Watson, EY MENA strategy and transactions leader. 

He added: “The momentum is expected to continue into 2025, with companies from various sectors announcing their intention to come to market. In addition, regional exchanges are actively working on initiatives to promote family-owned businesses and small to medium enterprises, aiming to strengthen the capital markets infrastructure and boost future liquidity.”

Earlier this month, a report released by the Kuwait Financial Center revealed that Saudi Arabia led the GCC IPO market in 2024, raising $4.1 billion through 42 listings, the highest number in the region. 

According to that analysis, the GCC region saw an increase of 23 percent in IPO proceeds compared to 2023, reaching a total of $13.2 billion across 53 public offerings. 

The EY report states that the MENA region witnessed 25 IPOs in the fourth quarter of 2024 raising $7.9 billion — a 32 percent increase in number and a 59.4 percent surge in proceeds compared to the same period in 2023. 

Saudi Arabia dominated the region’s IPO activity with 17 of the listings, and the Kingdom also raised $1.2 billion in proceeds during the period. 

Five IPOs took place on Saudi Arabia’s main market during the fourth quarter, raising proceeds worth $1.1 billion. The remaining 12 IPOs happened on the Kingdom’s parallel market Nomu, with proceeds valued at $119 million. 

Arabian Mills for Food Products Co. and United International Holding Co. marked the highest proceeds in Saudi Arabia at $300 million each. 

“The last quarter of 2024 was a bumper quarter for the MENA region with 25 IPOs, making up 46 percent of the total IPO activity in that year. Nomu listings accounted for 50 percent, indicating robust activity in the junior Saudi market,” said Hughes. 

According to EY, Talabat Holding plc, which is listed on the Dubai Financial Market, raised the highest proceeds valued at $2 billion, contributing 25.8 percent of the overall number in the fourth quarter. 

The Abu Dhabi Securities Exchange welcomed two IPOs in the fourth quarter, with proceeds valued at $2 billion. 

In the ADX, Lulu Retail Holding raised $1.7 billion, followed by ADNH Catering at $235 million. 

The Bahrain bourse witnessed the Al-Abraaj Restaurants Group IPO that raised $23.9 million. 

Outside of the GCC region, there were two MENA IPOs in the fourth quarter: Compagnie Marocaine de Goutte a Goutte et de Pompage in Morocco and the United Bank in Egypt.