Saudi Arabia strengthened its position as the leading market for initial public offerings (IPOs) in the Gulf Cooperation Council (GCC) in 2025, accounting for nearly four-fifths of the region’s total proceeds, according to a new analysis by the Kuwait Financial Center (Markaz). The Kingdom raised $4.1 billion, equivalent to 79% of total GCC IPO proceeds, highlighting the continued resilience of its capital markets and strong investor confidence despite broader regional challenges.

The Saudi Exchange (Tadawul) hosted 13 IPOs totaling $3.7 billion, while its Nomu parallel market contributed an additional $336 million through 23 offerings.

As GCC economies advance with diversification strategies, developing deep and liquid capital markets remains crucial to attracting investment beyond hydrocarbons. Overall, GCC IPO markets raised $5.1 billion from 40 offerings in 2025, representing a 61% decline compared to the previous year. This reflects changing market dynamics and a more selective investment environment.

“Corporate IPOs raised $3.9 billion, or 76% of total GCC IPO proceeds during the year, while government-related entities accounted for 24%, or $1.2 billion, through three offerings,” Markaz said.

The UAE ranked second in the region, raising $544 million from two major IPOs: Alpha Data on the Abu Dhabi Securities Exchange, which secured $163 million, and Alec Holdings on the Dubai Financial Market, which raised $381 million. Oman followed with $333 million in proceeds, driven primarily by the IPO of Asyad Shipping Co., which represented 7% of regional activity. Kuwait’s Action Energy Co. listing contributed $180 million, accounting for 4% of total proceeds.

Saudi Arabia dominated across sectors, with industrials leading regional activity at $1.9 billion, largely driven by the flynas IPO, which raised $1.1 billion in one of the year’s standout listings. Real estate raised $1.2 billion from seven IPOs, including Umm Al Qura for Development and Construction and Dar Al Majed Real Estate Co. In comparison, healthcare generated $508 million through listings such as SMC Hospitals on Tadawul’s main market and Basma Adeem and Wajd Life Trading Co. on Nomu.

The consumer discretionary sector added $479 million from ten Saudi IPOs, and financial services generated $400 million, largely from Derayah Financial Co. Technology and energy each accounted for 4% of proceeds, while materials and consumer staples contributed 3% each.

Top-performing IPOs in the GCC benefited from favorable pricing, strong post-listing demand, and exposure to growth-oriented sectors. Ratio Speciality Co., listed on Nomu in March 2025, saw its share price surge 190% following the listing.

Not all offerings performed as well. Smoh Almadi, listed on Nomu in January, experienced a 60% decline in its share price due to limited liquidity and sectoral weakness.

Across the region, Oman’s Muscat Securities Market was the strongest performer in 2025, rising 28.1% year-on-year, followed by Kuwait with a 25.3% gain. Dubai and Abu Dhabi recorded increases of 17.2% and 6.1% respectively, while Bahrain and Qatar posted more modest gains. In contrast, Saudi Arabia’s Tadawul All Share Index fell 12.8%, highlighting the divergence between IPO activity and broader market performance.

Looking ahead, Markaz expects IPO activity to rebound in 2026, supported by stable interest rates, ongoing divestment programs, and evolving regulatory frameworks, suggesting that the GCC markets are poised for a more active year.