According to EY, capital markets in the Middle East and North Africa recorded 10 initial public offerings in the fourth quarter of 2025, raising total proceeds of $1.7 billion.
The surge was led by regional powerhouse Saudi Arabia, which remains the most active market, with six IPOs generating $561.6 million in profits over the three-month period, the firm said in its MENA IPO Eye Q4 2025 report.
Stock performance on the first day of Q4 2025 was mixed, with most listed stocks in the Kingdom of Saudi Arabia (KSA) either flat or declining at the end of the first trading day, with the remaining listed stocks showing a more positive performance.
The trading performance of some IPOs in the region has also been poor, with some planned listings postponed or canceled due to weak demand and selective investor sentiment.
Brad Watson, EY Parthenon Mena Leader, said: “IPO activity in the final quarter of 2025 highlights the continued maturation of MENA capital markets. Issuers and investors remain focused on quality, fundamentals and execution, reflecting an increasingly sophisticated market environment. The depth of capital available and the diversity of listings highlight the region’s growing role as a destination for public market activity.”
KSA continues to lead listing activities
In the fourth quarter of 2025, KSA remained the most active market with six IPOs raising a total of $561.6 million. Cherry Trading Company, Al Maesar Al Shamil Education Company, Consolidated Gruenenfelder Saady Holding Co., and Alramz Real Estate Company were listed on Tadawul Main Market with total revenue of $546.7 million. The remaining two listings were on Nomu – Parallel Market and raised a total of $14.8 million.
Kuwait, Morocco and the United Arab Emirates (UAE) accounted for the remainder of the quarter’s IPO activity.
During the fourth quarter of 2025, Société Générale des Travaux du Maroc (SGTM) led the region in terms of revenue, raising $525.4 million on the Casablanca Stock Exchange. This represents 30.4% of total revenue. No direct listings were recorded in the Mena region during the quarter.
IPOs during this period spanned a wide range of sectors, including real estate, construction, energy, retail, transportation and industrial, reflecting continued progress in expanding the region’s capital markets and strengthening economic diversification.
IPO pipeline remains active heading into 2026
Throughout 2025, there were 49 IPOs in the Mena region, raising a total of $7.3 billion in proceeds. Comparing 2024 and the previous year, the total number of IPOs decreased by 9.3% from 54 companies listed, and total proceeds decreased by 41.8% from $12.6 billion raised.
The majority of listings in 2025 came from KSA, which accounted for 39 IPOs and raised a total of USD 4.9 billion.
Although both investors and companies maintained a disciplined approach, the year was characterized by stable issuance activity, supported by ongoing economic diversification, regulatory developments, and increasing capital market depth across the region.
Gregory Hughes, EY Parthenon MENA IPO Leader, said: “Regulatory frameworks and governance standards continue to expand across the region, supporting the credibility and accessibility of markets. These developments strengthen capital markets infrastructure and sustain interest from companies preparing to list.”
Regulatory developments supporting capital market growth
Regulatory efforts across the region continue to strengthen market transparency, governance, and access to capital. These initiatives are contributing to deeper and more resilient capital markets and are expected to support sustained IPO activity as regional exchanges evolve.
MENA’s IPO outlook remains positive, with 18 companies and funds indicating their intention to list across the region’s exchanges in early 2026. The expected listings include sectors such as logistics, utilities, technology, manufacturing and industrials, reflecting strong momentum across diverse sectors of the economy. -TradeArabia News Service
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