RIYADH: Initial public offerings across the Middle East and North Africa raised $700 million in the third quarter of 2025, according to an EY MENA IPO Eye report.
A total of 11 IPOs were recorded during the period, marking a 120 percent year-on-year increase in the number of listings, driven by mid-market activity.
The strong performance extended to regional stock exchanges, with the MSCI Emerging Markets Index rising 25 percent, followed by the EGX 30 Index, which gained 23.3 percent, and the Boursa Kuwait Premier Market Index, which climbed 19.6 percent.
The surge in IPO activity across MENA reflects broader economic diversification efforts and deepening capital markets. In Saudi Arabia, real GDP grew 5 percent in the third quarter from a year earlier, driven by strong gains in both oil and non-oil sectors, official data showed.
In Egypt, the economy expanded 4.77 percent in the third quarter of fiscal year 2024/25, supported by an 18.8 percent year-on-year increase in non-oil manufacturing.
According to Brad Watson, EY-Parthenon MENA leader, the recent quarter “reflects the increasing depth and maturity of MENA capital markets, supported by a steady pace of listings across multiple sectors and geographies.”
He added that companies are “becoming increasingly strategic with market timing — carefully assessing investor sentiment and macroeconomic conditions before going public.”
Saudi Arabia accounted for the majority of IPO activity, completing eight listings that raised a combined $637 million.
Dar Al Majed Real Estate Co.’s $336 million listing on the Tadawul Main Market led the region, followed by Marketing Home Group for Trading Co. with $109 million and Sport Clubs Co. with $69 million.
An additional $124.1 million was raised through IPOs on the Nomu parallel market, spanning sectors such as retail, healthcare, and industrial services. Real estate accounted for 55 percent of proceeds on the main exchange.
Egypt recorded IPOs from Bonyan For Development & Trade SAE and National Printing Co., while Morocco saw the listing of Vicenne S.A., signaling growing regional diversification.
Gregory Hughes, EY-Parthenon MENA IPO leader, noted that “with lower oil prices, we continue to see economic diversification from non-oil revenues, and the sector focus in Saudi Arabia has shifted from healthcare and mobility to real estate, hospitality, construction, and retail.”
Looking ahead, the pipeline for the fourth quarter of 2025 and beyond remains robust, with 19 entities across various sectors preparing to list.
Saudi Arabia leads with 13 planned listings, including Almasar Alshamil Education Co. and Al Romansiah Co., both of which have secured Capital Market Authority approval. In the UAE, ALEC Holdings PJSC debuted on the Dubai Financial Market in October.
Outside the Gulf Cooperation Council, Algeria’s Diar Dzair and Morocco’s Gharb Papier Et Carton SA are awaiting regulatory approvals for planned IPOs.
The outlook is supported by positive policy momentum, diversified investor interest, and increasing integration of environmental, social, and governance principles.
Meanwhile, regulatory environments across the region continue to evolve.
In the UAE, updated governance reforms now permit the combination of board chair and CEO roles under specific conditions, while in Saudi Arabia, the Capital Market Authority has launched consultations on changes to market-making rules and foreign ownership limits aimed at enhancing liquidity and accessibility.
