Initial public offerings (IPOs) in the Middle East and North Africa (MENA) raised $2.5 billion across 14 deals in the second quarter of 2025, up 4 per cent on the previous quarter, with Saudi Arabia accounting for most of the activity, EY said on Monday.
Saudi Arabia hosted 13 IPOs spanning sectors including transportation and healthcare, raising a combined $1.9 billion. The largest Saudi listing was budget carrier flynas on the Tadawul Main Market, which contributed 44 per cent of total Q2 proceeds, followed by Specialized Medical Company at $500 million and United Carton Industries Company at $160 million, according to the EY MENA IPO Eye report.
MENA IPO activity rises in Q2
In the United Arab Emirates, the Dubai Financial Market saw the debut of Dubai Residential REIT, which raised $584 million. EY said it is the largest real estate investment trust (REIT) by market capitalisation in the GCC and the region’s first pure-play residential leasing REIT.
“Despite investors practising caution, we have seen strong growth,” said Brad Watson, MENA EY-Parthenon Leader. “The diversity of sectors represented, along with milestone listings such as Dubai Residential REIT, highlights the depth of opportunities across the region.”
Aftermarket performance was mixed: 10 of the 14 IPOs closed below their offer price on debut, while five recorded gains, reflecting cautious sentiment. Issuers are increasingly timing offerings to market conditions, EY said.
Regional equity markets were uneven in the quarter, with the Boursa Kuwait Premier Market Index leading gains, up 17.2 per cent.
EY noted a shift toward secondary offerings, with secondary listings making up 64.3 per cent of Q2 IPOs versus 35.7 per cent in Q1, indicating a preference for shareholder exits over new capital raising amid uncertainty.
“KSA continues to set the pace for IPO activity in the MENA region,” said Gregory Hughes, MENA EY-Parthenon IPO Leader. “Landmark transactions in the UAE show how regional exchanges are evolving to meet the needs of a broadening investor base.”
The pipeline for the second half of 2025 remains “healthy”, EY said, with 14 companies intending to list, including 10 from Saudi Arabia and prospective offerings from non-GCC markets such as Egypt, Tunisia and Morocco.
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