MENA IPO markets raise $1.7bn from ten listings

Capital markets across the Middle East and North Africa recorded ten initial public offerings that raised a combined $1.7bn in the fourth quarter of 2025, signalling continued investor engagement despite broader market headwinds. According to the EY MENA IPO Eye Q4 2025 report, the MENA region sustained momentum in public market activity as companies across diverse sectors tapped equity markets for capital.

Morocco’s Société Générale des Travaux du Maroc dominated fundraising during the period, securing $525.4m on the Casablanca Stock Exchange, equivalent to about 30% of total proceeds. This was followed by Alec Holdings PJSC, which raised $381.2m on the Dubai Financial Market, representing around 22% of funds raised in the quarter. No direct listings were recorded in the region during the period, reflecting continued preference among issuers for traditional book-built offerings.

The Kingdom of Saudi Arabia remained at the forefront of IPO activity, with six listings that together generated $561.6m in proceeds and underscored the Tadawul exchange’s central role in regional capital markets. Kuwait, Morocco and the United Arab Emirates accounted for the remainder of IPO activity during the quarter, highlighting the geographic breadth of offerings across MENA.

Market participants pointed to both the depth of capital available and the increasing sophistication of regional capital markets as factors supporting IPO activity. Brad Watson, EY-Parthenon MENA Leader, said IPO activity during the final quarter of 2025 “highlights the continued maturation of MENA capital markets,” as issuers and investors remained focused on fundamentals and execution.

Listings spanned a variety of sectors including real estate, construction, energy, retail, transportation and industrials, reflecting broader economic diversification efforts across the region. Analysts say this sectoral spread signals more balanced risk appetites among investors and a willingness among companies outside traditional energy segments to access public capital.

Despite the quarter’s fundraising success, aftermarket performance was mixed. First-day share price movements varied, with several IPOs on Saudi exchanges remaining static or trading lower at the close of their initial session. Some planned listings were postponed or pulled amid more selective investor sentiment and broader market volatility, highlighting challenges that persist for issuers seeking to time market windows effectively.

For the full year 2025, MENA IPO activity encompassed 49 listings that collectively raised $7.3bn, down from the previous year both in terms of number of deals and total proceeds. The decline relative to 2024 reflects the absence of several very large offerings that boosted capital raising in the prior year, as well as more cautious investor sentiment amid global economic uncertainty and fluctuating oil prices.

The MENA region’s IPO results contrast with patterns seen earlier in 2025. During the second quarter, for example, 14 listings raised $2.5bn, supported by strong activity on Saudi exchanges and notable offerings such as a Dubai Residential REIT that attracted significant investor interest. Across the third quarter, 11 IPOs raised $700m, more than doubling the number of listings when compared with the same period a year earlier and illustrating a broader pipeline of issuers.

Regulatory developments have also been shaping the landscape. Capital market authorities in several MENA countries have pursued reforms aimed at improving liquidity, governance and accessibility for foreign investors. In the UAE, for instance, governance reforms permit certain executive structures under specific conditions, while in Saudi Arabia consultations on market-making rules and foreign ownership limits are underway. Such initiatives are designed to foster deeper and more resilient markets but also require adjustments from issuers navigating evolving compliance frameworks.

Investor sentiment across the region has been influenced by broader global trends. Volatility in global markets and macroeconomic concerns have led investors to become more discerning, favouring companies with clear profitability pathways and strong governance standards. This selectivity has placed greater emphasis on offering quality and fundamentals during IPO pricing and marketing.

Looking ahead, market participants point to a healthy pipeline of companies and funds intending to list on MENA exchanges, with 18 entities identified as planning offerings following the fourth quarter. This sustained pipeline, alongside efforts to broaden capital markets infrastructure and regulatory frameworks, contributes to expectations that IPO activity will continue to play a strategic role in regional economic diversification and financial market development.