Middle East initial public offerings are set to rebound in 2026 after slumping to their weakest level since 2020, hit by lower oil prices, geopolitical risks and weak post-listing performances at some major companies, analysts said.
The region's firms raised $7.1 billion from 61 listings last year, compared to $13.1 billion in 2024. The total amount raised in 2025 was the lowest since 2020 when companies pulled in $2.2 billion, according to financial data platform Dealogic.
However, Middle East markets are expected to recover this year, with Gulf countries leading the way.
“The Gulf IPO markets are expected to witness a measured recovery in 2026,” Vijay Valecha, chief investment officer at Century Financial, told The National.
“Abu Dhabi Securities Exchange and Dubai Financial Market are expecting nine to 12 IPOs in the first half of 2026, and the focus is on sectors like real estate, aviation, tech/digital platforms, logistics, utilities and hospitality. Billions of dollars could be raised to deepen liquidity,” Mr Valecha added.
Dubai Investment Park, the property arm of Dubai Investment, is among companies expected to list, Mr Valecha said. So too are Abu Dhabi's Etihad Airways and Dubai's Binghatti Holding but they have yet to confirm their IPO plans, he added. Dubizzle, which postponed its IPO last year, is also tipped to come to market.
UAE companies raised a total of $1.1 billion through three IPOs in 2025, Dealogic data shows.
Alpha Data, construction and engineering firm Alec Holdings and Dubai Residential Reit, a sharia-compliant, income-generating property investment trust, each listed their shares on UAE bourses last year after raising $163 million, $584 million and $381 million respectively.
Saudi Arabia, the Arab world’s largest economy, is also expected to experience strong IPO activity this year, supported by global rate stabilisation and Vision 2030 diversification tailwinds, Mr Valecha said.
The kingdom is focusing on diversifying its economy away from oil and is spending heavily to build projects covering sectors including infrastructure, real estate and tourism. It is also allowing residents in Gulf countries to invest directly in the kingdom’s main Tadawul market as part of measures to attract more foreign investment in its bourse.
“The Saudi Arabia Capital Market Authority is reviewing 40 IPO applications as of the end of 2025, covering sectors including energy, health care, financial services, real estate and mining, positioning Tadawul for 20 to 30 executions this year from strong private company interest,” Mr Valecha added.
Nishit Lakhotia, head of research at SICO Bank, Bahrain, said the UAE and Saudi Arabia will have the most listings in the Gulf region in 2026, with some activity in Kuwait, Oman and Bahrain.
Last year, Saudi Arabia raised $4.2 billion through 38 IPOs, Dealogic data shows. Budget airline Flynas and packaging maker United Carton Industries were among companies that listed their shares on Tadawaul, after raising $1 billion and $160 million respectively through IPOs.
Oman and Kuwait recorded one IPO each, while there were no listings in Qatar and Bahrain.
Oman’s Asyad Shipping raised $332.8 million in a Muscat IPO last year, while Action Energy raised $179 million to debut on Kuwait's bourse.
There has been a government push for more privatisation across the Gulf region, but more needs to be done to boost listings, analysts say.
“Stronger internal controls, governance and sustainability reporting will help widen the foreign institutional buyer base and make markets more resilient in drawdowns,” said Joseph Dahrieh, managing principal at Dubai based brokerage Tickmill. The UAE and Saudi Arabia are working to tighten corporate governance requirements for listed companies, he added.
“The UAE’s Securities and Commodities Authority’s push for internal control over financial reporting is explicitly raising the governance bar for listed companies, while in Saudi Arabia, corporate governance requirements for internal audit and board reporting have tightened.”
Post-listing drag
Poor post-listing performance by major regional companies deterred others from moving ahead with IPO plans last year.
Supermarket group Lulu has fallen about 44 per cent since listing on the ADX last year, while food delivery company Talabat, one of the region’s largest IPOs, has lost about 45 per cent since its debut.
Investor confidence was also hit as lower oil prices put pressure on government revenue.
Last year, oil prices posted their steepest annual decline since 2020 on oversupply concerns as Opec+ boosted production to regain market share.
“With government revenue under pressure, investor confidence may be affected, leading to muted activity in the capital markets,” Mr Valecha said.
