The GCC is all about ambition. Whether it’s the impressive skylines of Dubai and Doha or the global financial hubs of Riyadh and Abu Dhabi, so many parts of this region have become centres for global trade. And in recent years, there has been increased activity in the capital markets, with a major surge of initial public offerings (IPOs).
The numbers speak for themselves. According to PwC, GCC exchanges broke records in the 2024 financial year, with 53 listings across the region and USD 13.7 billion raised. That’s a sizable increase from the USD 10.5 billion the previous year. The end of 2024, specifically the final quarter, accounted for 26 IPOs alone. Moving to 2025, the good news continues. S&P Global Market Intelligence reports that IPO activity has continued to climb in H1 2025 – and that’s despite market volatility from changes in US trade policies. So far this year, GCC exchanges saw 27 IPOs raising USD 4.1 billion in capital, which is a significant increase from 2024.
But what does an IPO in the Gulf actually entail? Is it just a question of size and growth? How is the process structured, and who leads these listings? The answers are somewhat nuanced, shaped by the region’s dynamics and regulatory frameworks. So, let’s take a closer look.
What makes a business ready for an IPO?
If we were to generalise, then companies that are deemed ready for an IPO are showing significant revenues and a strong growth curve. But here is where the nuance we mentioned earlier comes in, because this is not quite the whole story.
To list in Dubai, Abu Dhabi, Riyadh or Muscat, companies must not only demonstrate commercial performance but also strategic relevance. In the GCC, policymakers and regulators are very deliberate about which companies enter the public markets. This is because IPOs are viewed as part of a broader economic diversification strategy, which is a process that all Gulf states are currently undergoing.
For example, Saudi Arabia’s Tadawul has become the largest and most active exchange in the region. In 2024, Saudi Arabia led the GCC with 15 IPOs on the Tadawul main market and 27 listings on the Nomu parallel market. In both cases, these were sizable increases when compared to 2023. The country has used listings to energise its Vision 2030 initiatives, with high-profile IPOs like Saudi Aramco back in 2019 seen as a way to raise capital, deepen public ownership, and unlock liquidity in the domestic economy.
Because of this mixture of size and growth – but with alignment to national priorities – a company may be viewed as IPO-ready at an earlier stage than a traditional business without such alignment. This is why companies in renewable energy, digital infrastructure, logistics, healthcare and tourism may take priority.
Understanding regulations
There are several key additional factors that founders and executives need to consider when undertaking an IPO in the Gulf. It can be broadly categorised into three key areas.
The first is regulatory approval. Each exchange has its own listing authority – these include the Capital Market Authority (CMA) in Saudi Arabia, the Qatar Financial Markets Authority (QFMA), and the Securities and Commodities Authority (SCA) in the UAE. These regulators review financial disclosures, governance structures and compliance with listing rules.
The second area to be aware of is around governance, with Gulf regulators requiring IPO candidates to demonstrate strong corporate governance, clear ownership structures, independent boards and transparent reporting practices. The Gulf’s private sector is dominated by family-owned businesses, which often need restructuring prior to being listed to create separation between ownership and management.
The final aspect that needs to be emphasised is the timeline of the IPO process. Everything moves fast in Gulf business, and IPOs are no different. When there is strong government backing, things can move very swiftly. While the bookbuilding, valuation, allocation and eventual trading all follow the usual frameworks, the presence of sovereign wealth funds is distinctive, and if an SWF is involved, this usually signals confidence.
Who leads Gulf IPOs?
Perhaps one of the most defining characteristics of Gulf IPOs is that many are led by state-backed entities. In fact, some of the largest listings in recent years have come from government-related companies that are looking to monetise assets, deepen liquidity and promote private sector participation. This reflects both the scale of government holdings in certain strategic sectors as well as their aim to open up opportunities for retail and institutional investors.
But we should not dismiss private sector IPOs, as these are gaining traction as well. Technology, logistics, healthcare and consumer goods companies are beginning to view the Gulf’s exchanges as attractive alternatives to overseas listings. The venture capital ecosystem in the region is also maturing.
Investor appetite and global attention
The GCC region benefits from high levels of local liquidity, and IPOs are often oversubscribed. So investor enthusiasm is often outsized when compared to the relative scarcity of listed assets.
Global investors are also seeing the GCC markets as an entry point to the wider Middle East. Strong dividend yields, solid balance sheets, and the fact that many Gulf companies are involved in utilities, energy, and infrastructure ultimately make them appealing.
It should be said, though, that companies considering an IPO can’t take investor appetite for granted. Gulf investors are becoming more sophisticated, and companies that fail to meet expectations on disclosure and performance risk reputational damage.
IPOs: Preparing for the leap
So what does it take for a company to be IPO-ready in the Gulf? Alongside the formal listing requirements, these are the key areas to be aware of:
- Restructuring: Both family businesses and conglomerates must have independent boards, professional management and clear reporting lines.
- Transparency: Financial disclosures should meet International Financial Reporting Standards (IFRS), and organisations must build strong internal audit functions.
- National priorities: Demonstrating that the business contributes to the national visions of GCC countries, including economic diversification, job creation and innovation, increases the likelihood of regulatory and investor support.
- A compelling story: Investors want to understand where the business is today and where it will be in five or ten years. Be clear about growth plans and competitive advantages.
- Engage stakeholders: Early engagement with regulators, underwriters, and advisors can smooth the approval process.
- Post-listing: It’s essential to develop the capability to manage post-listing pressures, including quarterly reporting and market scrutiny.
The Gulf as a capital markets hub
The Gulf’s rise as an IPO destination is largely driven by the region’s ambition to become a global capital markets hub. With sovereign wealth funds among the largest in the world and modernising exchanges, the Gulf offers a unique environment.
Companies that succeed in listing on Gulf exchanges are those that understand the intersection of business performance, governance discipline and national strategy. They are organisations that see an IPO as something far beyond a fundraising event, and understand that this kind of transformation has the potential to reposition them for long-term resilience.
