The Middle East’s equity capital markets (ECM) have experienced significant growth recently, with Saudi Arabia at the forefront. The kingdom’s dominance is anticipated to persist through the end of 2024, driven by a growing pipeline of deals in emerging sectors.

According to Saudi Exchange CEO Mohammed Al Rumaih, Saudi Arabia is projected to achieve 50 new listings this year, with 35 already completed. This would mark the region’s strongest first-half performance since 2008.

At EFG Hermes’ annual investor conference in London, Saudi Exchange CEO Mohammed Al Rumah projected the country would hit 50 new listings by the end of 2024, having already reached 35. This highlights Saudi Arabia’s significant contribution to the region’s capital markets.

Bankers at EFG Hermes are actively engaged in significant Saudi Arabian deals. Their involvement includes a dual listing with the UAE, a smaller transaction within the UAE, and an anticipated Omani trade set for the first quarter of 2025.

“Deal sizes range between $250 million and $550 million with one dual listing crossing $1 billion to $1.5 billion,” said Mostafa Gad, Global Head of Investment Banking at EFG Hermes. He noted that increased deal count and private sector engagement reflect the region’s shift toward more growth-driven opportunities, moving away from traditional yield plays.

There is a shift from traditional privatizations in the UAE towards new tech-focused offerings, exemplified by edtech platform Alef and Delivery Hero’s Dubai-based subsidiary Talabat. Consumer businesses are also gaining traction, with Lulu Group planning a dual listing on Tadawul and Abu Dhabi Exchange by year-end.

Oman is increasing its market activity, with state-owned energy company OQ preparing to list its $2 billion subsidiary, OQ Exploration and Production. Secondary market activity is also gaining momentum across the region, with follow-on deals from Aramco and Adnoc contributing to the trend.

As regional markets evolve, there is a growing emphasis on growth metrics rather than traditional P/E ratios for valuing companies.

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