Saudi Arabia Leads MENA IPO Growth in Q3 2025
The MENA region has experienced a notable surge in initial public offerings (IPOs) during the third quarter of 2025, reflecting a growing confidence among investors and a maturing capital market landscape. Saudi Arabia has emerged as a key player in this trend, contributing significantly to the overall performance of the region’s IPO activities.
MENA IPO Overview
According to the latest EY MENA IPO Eye report, the region recorded 11 IPOs in Q3 2025, raising a total of $700 million. This represents a remarkable 120% increase in listings compared to the same quarter last year. The growth indicates a robust recovery and heightened investor interest in the MENA capital markets.
Saudi Arabia’s Dominance
Saudi Arabia led the charge with eight of the 11 IPOs, generating proceeds of $637 million. The largest listing of the quarter was the Dar Al Majed Real Estate Company, which raised $336 million on the Tadawul Main Market, accounting for nearly half of the total funds raised in the region. Other significant listings included Marketing Home Group for Trading Co., which raised $109 million, and Sport Clubs Company, which garnered $69 million.
The remaining IPOs took place on the Nomu parallel market, collectively raising $124 million. These listings spanned various sectors, including retail, healthcare, and industrial services, showcasing the diverse opportunities available to investors.
Contributions from Other Countries
Beyond Saudi Arabia, Egypt and Morocco also made contributions to the IPO landscape. Egypt saw the listings of Bonyan for Development & Trade SAE and National Printing Company, while Morocco welcomed Vicenne S.A. These developments highlight the increasing appeal of the MENA region to both regional and international investors.
Insights from Industry Leaders
Brad Watson, EY-Parthenon MENA Leader, commented on the quarter’s performance, noting that it reflects the growing depth and maturity of MENA capital markets. He emphasized that companies are becoming more strategic in their market timing, carefully evaluating investor sentiment and macroeconomic conditions before proceeding with public offerings. With a solid regulatory framework and a promising pipeline leading into Q4 2025, the region is poised for sustained growth and continued international interest.
Gregory Hughes, EY-Parthenon MENA IPO Leader, reiterated Saudi Arabia’s central role in the region’s equity market growth. He pointed out that the focus of IPO activity has shifted from healthcare and mobility in Q2 2025 to sectors such as real estate, hospitality, construction, and retail. Looking ahead to Q4 2025, Hughes anticipates a healthy pipeline of offerings, reinforcing the region’s status as a capital market hub.
Future Outlook
The report indicates a strong IPO pipeline as the region approaches Q4, with 19 companies and funds planning to list. Saudi Arabia is leading with 13 planned offerings, including Almasar Alshamil Education Company and Al Romansiah Company, both of which have received approval from the Capital Market Authority. In the UAE, ALEC Holdings recently listed on the Dubai Financial Market, while new entrants from Algeria and Morocco await regulatory clearance.
Positive regulatory developments are also on the horizon. The UAE has allowed the combination of Board Chair and CEO roles under specific conditions, while Saudi Arabia’s Capital Market Authority is consulting on enhancements to market-making and foreign ownership rules. These reforms aim to improve liquidity, transparency, and investor access as MENA markets continue to evolve.
FAQs
What is the significance of the recent IPO surge in MENA?
The surge indicates increased investor confidence and a maturing capital market, with a 120% rise in listings compared to the previous year.
How did Saudi Arabia perform in the recent IPOs?
Saudi Arabia accounted for eight of the 11 IPOs in Q3 2025, raising $637 million, with significant contributions from various sectors.
What are the future prospects for IPOs in the MENA region?
The region has a strong IPO pipeline with 19 planned listings, particularly in Saudi Arabia, which is expected to maintain its leadership in capital market activities.
Conclusion
The third quarter of 2025 has marked a significant milestone for the MENA region’s IPO landscape, with Saudi Arabia at the forefront of this growth. As the region prepares for a promising fourth quarter, ongoing regulatory improvements and a diverse range of upcoming listings suggest a bright future for capital market activities in MENA.
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