Saudi Arabia and the UAE led IPO activity in the Gulf region last year, but the total value of funds raised through initial public offerings nearly halved compared with 2024, reflecting a slowdown in capital markets across the region.
According to a new Viewpoint report by consultancy Arthur D. Little, companies across the Gulf Cooperation Council (GCC) raised $6.6 billion (Dh24 billion) through share sales in 2025, the lowest annual total since the pandemic period. That figure compares with $12.9 billion raised in 2024, $10.8 billion in 2023, $22 billion in 2022 and $7.8 billion in 2021. In 2020, at the height of pandemic disruption, companies raised $2.1 billion.
Despite the drop in overall value, Saudi Arabia and the UAE continued to dominate the regional IPO landscape. Saudi Arabia accounted for 63.5 per cent of total proceeds last year, while the UAE contributed 28.7 per cent.
In terms of deal volume, Saudi Arabia led the market with an 80 per cent share, supported by a steady flow of smaller and diversified listings across consumer, industrial and services sectors. Among the largest offerings were Saudi low-cost carrier flynas, which raised $1.1 billion, and Dubai Residential REIT, which raised $0.6 billion.
Arthur D. Little said the influence of the UAE and Saudi Arabia extends beyond headline numbers. Both markets have undertaken regulatory modernisation, introduced reforms to foreign ownership rules and strengthened governance and disclosure requirements. These changes have reshaped investor expectations and raised the bar for companies seeking to go public.
As a result, firms listing in the UAE and Saudi Arabia are being evaluated against higher standards of transparency, strategic clarity and long-term value creation. This, the report noted, has effectively set the benchmark for IPO readiness across the wider GCC.
“The UAE and Saudi Arabia have become the reference markets for IPOs in the GCC, not just in terms of activity, but in how capital markets function and how investors assess risk and value,” said Dhiraj Joshi, Partner at Arthur D. Little.
He added that the scale of the two markets, combined with regulatory maturity and broad investor participation, is shaping expectations across the region and influencing how IPOs are assessed beyond national borders.
Martynas Vaikasas, Principal at the firm, said companies listing in the UAE and Saudi Arabia now operate in a more competitive and transparent environment. “That environment is setting a clear benchmark for the rest of the GCC, where IPO success increasingly depends on a compelling equity story supported by a credible strategy and disciplined use of capital,” he said.
While fundraising levels have cooled, analysts say the continued leadership of the region’s two largest markets signals an evolving IPO landscape defined as much by quality and governance as by volume.
