16 Feb 2025
RIYADH: The outlook for initial public offerings in the Middle East and North Africa region remains positive in 2025, with Saudi Arabia leading the market with 27 potential listings, according to an analysis.
In its latest report, professional services network firm EY said the overall MENA region was expected to witness the listing of 38 companies and 22 funds in 2025, across a variety of sectors. Three listings are in the pipeline of the exchanges in the UAE, while Qatar is expected to witness one IPO.
“The region continues to drive positive developments in areas such as governance and ESG to enhance its attractivity to local and international investors alike,” said Gregory Hughes, EY MENA IPO and transaction diligence leader.
According to the analysis, Panda Retail Co. and Riyad Capital from Saudi Arabia, as well as Etihad Airways and Amanat Holdings from the UAE, are the notable companies considering an IPO in 2025.
Outside the GCC region, Egypt has announced five IPOs for 2025, while Algeria has two businesses intending to list.
In December, the Egyptian Cabinet announced plans to accelerate the government offerings program procedures in 2025 to maximize the private sector’s economic role and attract more investments.
The move from the government aligns with the nation’s broader effort to expand the number of publicly traded companies and attract greater investment.
The EY report set out how ESG goals remain “a priority” in the Middle East, and this will have an impact on potential IPOs.
It cited a new law in the UAE, set to come into force in May, requiring companies to report carbon emissions and adopt decarbonization strategies — including renewable energy and carbon offsetting. It sets penalties for noncompliance and encourages research and development. It also promotes carbon trading through a dedicated registry.
“These measures align with the UAE’s 2050 net zero goals and are likely to influence IPO market dynamics, as companies prioritize sustainability to attract investors,” said the report.
The expected listings activity in the Gulf is in line with global forecasts, with the IPO market on track for a “strong performance” in 2025, according to EY.
“This is supported by a cautiously optimistic economic environment, increasingly accommodative monetary policies, heightened liquidity, valuation levels and investor confidence,” the report added.
The firm said that while there were challenges — particularly around fiscal and monetary policies, geopolitical tensions, artificial intelligence and digital transformation — they also “open the door to new opportunities.”
EY called on businesses to focus on adapting their strategies to align with shifting market demands and “leveraging IPOs as a platform to drive growth and innovation.”
MENA IPO activity in 2024
EY revealed that markets in the MENA region witnessed a total of 54 IPOs in 2024, representing a 12.5 percent rise compared to 2023.
These IPOs raised $12.6 billion in proceeds, also marking a 17.6 percent rise compared to the previous year.
The year-on-year increase in proceeds for 2024 was impacted by a number of large-value IPOs such as Talabat Holding plc, OQ Exploration & Production and Lulu Retail Holdings that were listed during the last quarter of the year.