GCC IPO Market Q1 2025: Resilient Growth Led by Saudi Arabia, UAE, and Oman

In Q1 FY2025-26, consumer markets led GCC IPO activity, capturing 42 percent of total proceeds, driven by strong investor interest in lifestyle and retail sectors. Financial services and energy followed, highlighting investor confidence in stable and diversified assets.

Gulf capital markets opened FY2025-26 with a resilient performance, as initial public offerings (IPOs) across the Gulf Cooperation Council (GCC) raised a total of US$1.6 billion in Q1, marking a 33 percent increase over the same period last year. According to PwC Middle East’s latest IPO Watch report, a diverse range of companies, including private and family-owned businesses, entered the market, reflecting continued investor appetite despite mounting global uncertainties.

Saudi Arabia remained the regional frontrunner, contributing nearly 70 percent of total IPO proceeds, while landmark listings in the UAE and Oman reinforced broader regional efforts to deepen capital markets and advance economic diversification.

Although the quarter unfolded against a backdrop of rising global trade tensions and recession concerns, GCC markets demonstrated notable stability and momentum, suggesting a cautiously optimistic outlook for the remainder of the year.

In this article, we examine the key trends driving Q1 IPO performance across the GCC, with a focus on the role of regional leaders, the growing significance of the consumer markets sector, and the rebound in bond and sukuk issuances.

GCC IPO in Q1 FY2025-26

Despite a challenging global macroeconomic backdrop, the GCC equity markets demonstrated notable resilience in the first quarter of 2025. A total of eleven IPOs were launched across the region, raising US$1.6 billion, up from US$1.2 billion in Q1 FY2024-25. This 33 percent year-on-year growth underscores continued investor confidence in the region’s capital markets, even as global equities experience turbulence.

The UAE also played a significant role in the quarter’s activity. Notably, Abu Dhabi-based Alpha Data, a prominent digital transformation and system integration company, raised US$163 million on the Abu Dhabi Exchange—signaling investor interest in technology-driven sectors and digital infrastructure.

In Oman, the government’s privatization strategy gained traction with the successful listing of Asyad Shipping on the Muscat Stock Exchange. The company raised US$333 million, marking one of the quarter’s largest non-Saudi IPOs and underscoring Oman’s ongoing efforts to diversify its economy and enhance capital market participation.

While Qatar and Bahrain did not record any IPOs in the first quarter, market watchers note that several potential issuances remain under review, with timing likely influenced by external volatility and issuer readiness.

Sectoral breakdown: Consumer market takes the lead

In terms of sector performance, consumer markets emerged as the clear frontrunner in Q1 FY2025-26, accounting for 42 percent of total IPO proceeds. This reflects strong investor appetite for businesses aligned with lifestyle, retail, and consumer trends—sectors that are gaining traction as Gulf economies shift toward service-led, consumption-driven models.

The financial services and energy, utilities and resources sectors followed, contributing US$400 million and US$333 million, respectively. The financial sector’s steady showing reinforces its traditional role as a stable investment category, while energy-linked IPOs demonstrate investor confidence in diversified energy portfolios amid oil price fluctuations.

Meanwhile, emerging activity in technology, media and telecommunications (TMT) points to growing demand for digital transformation plays. Although TMT accounted for a smaller share in Q1 (US$163 million) its role is expected to expand in the coming quarters as tech-focused companies prepare for listing, particularly in the UAE and Saudi Arabia.

Sectoral Breakdown: Consumer markets take the lead

In terms of sector performance, consumer markets emerged as the clear frontrunner in Q1 FY2025-26, accounting for 42 percent of total IPO proceeds. This reflects strong investor appetite for businesses aligned with lifestyle, retail, and consumer trends, sectors that are gaining traction as Gulf economies shift toward service-led, consumption-driven models.

The financial services and energy, utilities and resources sectors followed, contributing US$400 million and US$333 million, respectively. The financial sector’s steady showing reinforces its traditional role as a stable investment category, while energy-linked IPOs demonstrate investor confidence in diversified energy portfolios amid oil price fluctuations.

Meanwhile, emerging activity in technology, media and telecommunications (TMT) points to growing demand for digital transformation plays. Although TMT accounted for a smaller share in Q1 (US$163 million) its role is expected to expand in the coming quarters as tech-focused companies prepare for listing, particularly in the UAE and Saudi Arabia.

Debt capital markets surge in parallel

While equity markets attracted attention for their resilience, debt capital markets across the GCC also experienced a notable uptick in activity during the first quarter.

Bond issuances soared to US$4.6 billion, nearly tripling from US$1.6 billion in Q1 FY2024-25. Sukuk issuance remained strong as well, reaching US$4.1 billion, slightly below the previous year’s US$4.6 billion. This performance highlights the region’s growing reliance on diversified financing instruments to support both sovereign and corporate funding needs.

A significant portion (70 percent) of all GCC bonds and sukuks issued in Q1 were listed on Nasdaq Dubai, reinforcing the Emirate’s role as a leading platform for fixed income instruments. The uptick in debt issuance also signals that many issuers are opting to raise capital through bonds and sukuks while equity valuations remain under pressure due to global market volatility.

Market sentiment and outlook

GCC markets entered FY2025-26 amid heightened uncertainty, driven by newly announced US tariffs and renewed fears of a global recession. These developments contributed to a sharp uptick in market volatility, with the CBOE Volatility Index (VIX) reaching levels not seen since the early days of the COVID-19 pandemic.

The S&P GCC Composite Index declined by 7 percent in early April, reflecting global investor risk aversion. However, the market rebounded quickly and is currently trading just 1 percent below its level at the start of the year, signaling regional resilience and investor confidence in underlying fundamentals.

Despite the headwinds, the GCC remains well-positioned for continued IPO activity in FY2025-26, with a robust pipeline of potential issuers, including family-owned businesses, government-related entities, and tech companies, closely monitoring market conditions.

Also read: Qatar Launches US$1 Billion Investment Incentive Program

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