Abu Dhabi’s Etihad Airways is preparing to launch a $1 billion initial public offering (IPO) this week, according to sources. If confirmed, this would be the first IPO by a major Gulf airline in almost 20 years.
The airline plans to sell 20% of its shares through a new issuance, raising capital for future growth. Sources revealed that the offering includes 2.7 billion primary shares. The proceeds will directly support the company instead of its parent entity. Etihad, owned by Abu Dhabi’s $225 billion sovereign wealth fund ADQ, has not yet commented on the reports.
Etihad Airways: Strengthening Abu Dhabi’s Position as a Global Travel Hub
Etihad has expanded under CEO Antonoaldo Neves, despite undergoing a multi-year restructuring. The airline, which launched in 2003, reported a net profit of $476 million last year—more than three times its previous earnings.
As part of Abu Dhabi’s strategy to become a global travel hub, Etihad plans to increase its destinations to over 125 airports by 2030. This expansion aligns with the emirate’s broader economic diversification efforts. In 2023, Abu Dhabi unveiled a multibillion-dollar terminal at Zayed International Airport, tripling its capacity to 45 million passengers annually.
Investor Interest in the Gulf’s Aviation Sector
The IPO is expected to attract strong investor interest. While airlines in other regions struggle with rising costs and operational disruptions, Etihad continues to expand. If successful, this will be the second UAE IPO in 2025, following technology firm Alpha Data’s 40% stake sale.
Etihad’s move may pave the way for more airline listings in the Middle East, offering investors a rare opportunity to invest in a growing regional carrier.
