Gulf IPOs hit a three-year low as oil prices and investor confidence falter
Initial public offerings (IPOs) in the Gulf region have slowed sharply this year. By the end of November, companies had raised just $6.5bn—far below the $9.9bn seen in the same period last year. The full-year total is now expected to hit $2.4bn, the weakest performance since 2020.
Saudi Arabia and the UAE had previously benefited from economic reforms and China’s slowdown. But falling oil prices and a strong US dollar have since weakened investor confidence. The Saudi government, facing a widening budget deficit, has even paused some megaprojects meant to reduce its reliance on oil.
Newly listed companies have also struggled, with share prices dropping after their debuts. This has dampened enthusiasm for further IPOs. Saudi Arabia still managed 36 listings, raising $4bn, though its stock market has fallen by around 12% this year. The UAE’s market has fared worse, raising only $1bn in 2025 compared to $6bn last year and $12bn in 2022. Smaller Gulf nations like Bahrain and Kuwait have seen no IPOs at all this year. The only notable listing was EFSIM Facilities Management, which went public in the UAE.
The slowdown reflects a mix of lower oil revenues, weak post-IPO performances, and fewer state-backed privatisations. With just $2.4bn expected for the full year, the region’s IPO activity remains at its lowest since 2020. Investors are now watching closely for signs of recovery in 2026.
