Initial public offerings in the Middle East have fallen more than a third in 2025, marking the weakest year for listings since 2020, as lower oil prices and disappointing performances by newly floated companies weighed on investor sentiment, according to reporting by the Financial Times.
By the end of November, companies in the region had raised $6.5 billion through IPOs, down from $9.9 billion in the same period last year, Dealogic data show. If current trends hold, the full-year total will fall well below the $22.5 billion raised in 2022 and only slightly above the $2.4 billion raised during the pandemic-stricken year of 2020. Analysts say the slowdown is driven not only by weaker oil prices but also by a dearth of privatisations and concerns over the valuation and performance of recent listings.
Ali Khalpey, head of Middle East at Cantor, told the Financial Times that the IPO slowdown follows a period of strong momentum in the region, with investors now taking stock of valuations rather than rushing into new deals. Carl Tohme, a Dubai-based fund manager at Cheyne Capital, noted that while Saudi Arabia and the UAE benefited from structural reforms and a strong dollar in recent years, renewed investment in China and lower oil prices have challenged Saudi Arabia’s growth story.
The UAE’s IPO market has been particularly weak. Dubai and Abu Dhabi combined have raised only $1 billion this year, compared with $6 billion in 2024 and $12 billion in 2022. High-profile listings such as Etihad Airways and Dubizzle failed to materialise, while Saudi Arabia’s EFSIM postponed its expected flotation, citing market conditions.
Investor caution has been reinforced by poor post-listing performances. Talabat shares have fallen roughly 25% since its December 2024 Dubai debut, Lulu Retail has dropped about 40% since its Abu Dhabi listing, and Spinneys shares are down around 6%. In Saudi Arabia, Flynas and United Carton Industries have declined 17% and 40%, respectively, since their recent IPOs. Finlay Wright, head of equity markets for the Middle East and Asia at Rothschild, told the Financial Times that missed earnings guidance and market overhang are creating nervousness among investors.
Government-backed companies continue to dominate the region, crowding out private businesses and attracting capital with high dividend yields. Anita Gupta, chief investment officer at Dubai-based Wealthbrix Capital Partners, said investors have become accustomed to “very high dividend-yielding entities with quality assets,” making private listings more difficult to promote.
Smaller Gulf states have struggled to replicate the UAE and Saudi Arabia’s past momentum. Bahrain and Kuwait had no IPOs in 2025, while Oman raised $333 million from a single listing, down from $2.5 billion across three deals in 2024. Analysts say that unless oil prices recover and confidence in post-listing performance improves, the region’s IPO market could face continued weakness into 2026.
