Wednesday, 14 January 2026
Initial public offering (IPO) activity across Gulf Cooperation Council (GCC) equity markets declined sharply in 2025, with both deal volumes and proceeds falling to multi-year lows. According to a report by Kamco Invest, regional exchanges recorded 42 IPOs during the year, the lowest level in four years, while total proceeds dropped to USD 5.8 billion, marking a five-year low and a decline of almost 55 percent compared with 2024 .
The slowdown followed a relatively strong year for primary markets in 2024 and was largely driven by a reduction in large-scale offerings, alongside weaker equity market performance in the region. The Saudi benchmark TASI declined by 12.8 percent over the year, while the MSCI GCC index posted a modest gain of 1.6 percent, underperforming most major global markets. The report attributes this to a combination of geopolitical tensions, lower oil prices affecting project activity, and a shift in global capital toward markets benefiting from strong gains in artificial intelligence-related stocks.
Saudi Arabia remained the dominant IPO market in the region, accounting for 37 of the 42 listings across its Main Market and the Nomu Parallel Market. Despite a year-on-year decline in deal numbers, the Kingdom raised USD 4.2 billion in IPO proceeds, marginally higher than in 2024 and ahead of the UAE, where proceeds fell sharply to USD 1.1 billion from USD 4.1 billion a year earlier. IPO activity in the UAE declined to three deals in 2025, compared with seven in 2024. Other GCC markets recorded limited activity, with Oman seeing one IPO linked to the listing of a state-owned logistics company, while Kuwait registered a single smaller offering.
The contraction was also evident in deal size. Average IPO proceeds on GCC main markets declined to USD 306 million in 2025 from USD 505 million in 2024, and only one offering raised more than USD 1 billion during the year, compared with three such deals the previous year. At the same time, the number of IPOs with a market capitalisation above USD 1 billion fell to seven, down from 14 in 2024.
Post-listing performance weakened alongside market conditions. By year-end, a majority of newly listed companies were trading below their offer prices, with 28 IPOs recording declines and only 13 showing gains. Kamco Invest notes that elevated valuation expectations ahead of listings, combined with broader regional uncertainties, weighed on investor sentiment. Companies that delivered positive returns tended to operate in niche segments such as energy, software and services, and education.
In contrast to the GCC, global IPO activity showed moderate growth in 2025. Worldwide deal volumes increased slightly to 1,257 IPOs, while total proceeds rose by nearly 29 percent to USD 146.1 billion, the highest level in three years. The United States and China dominated global proceeds, together accounting for roughly half of the total, while the GCC’s share of global IPO proceeds fell to 3.9 percent from 11.4 percent in 2024.
Despite the weak performance in 2025, the outlook for the GCC IPO market in 2026 is more constructive. Kamco Invest identifies a pipeline of around 73 potential listings across the region, with Saudi Arabia expected to lead again in terms of volume. A stabilising macroeconomic environment and renewed investor interest in growth sectors could support a recovery in issuance, although competition from large global IPOs may continue to influence capital allocation decisions.
Source: Kamco Invest
