GCC IPO market sees 23% growth as UAE and Saudi Arabia dominate.
Initial Public Offerings (IPOs) in the Gulf Cooperation Council (GCC) region raised $13.2 billion in 2024, marking a 23% increase compared to 2023’s $10.7 billion, according to a report by Kuwait Financial Centre “Markaz”. The region witnessed 53 IPOs, driven by strong activity in the UAE and Saudi Arabia.
UAE and Saudi Arabia Dominate the Market
The UAE led the GCC IPO market for the third consecutive year, generating $6.4 billion from seven IPOs. This accounted for 49% of the region’s total proceeds. The Abu Dhabi Securities Exchange (ADX) contributed $3.6 billion, with notable offerings from NMDC Energy and Lulu Retail Holdings. Meanwhile, the Dubai Financial Market (DFM) raised $2.8 billion, with key IPOs from Talabat, Parkin Company, and Spinneys.
Saudi Arabia followed, raising $4.1 billion, representing 31% of total GCC IPO proceeds. The Saudi Exchange (Tadawul) hosted 42 IPOs, including 14 on its Main Market and 28 on its Parallel Market (Nomu). Major offerings included Dr. Soliman Fakeeh Hospital, Almoosa Health Group, and Nice One.
Oman ranked third, raising $2.5 billion through two IPOs by OQ Exploration and Production (OQEP) and OQ Base Industries (OQBI). OQEP’s $2 billion offering was the largest in Oman’s history.
Sectoral Contributions
The energy sector led the way, raising $3.7 billion (28% of total proceeds), followed by consumer staples at $3.1 billion (24%) and consumer discretionary at $2.7 billion (20%). The healthcare sector contributed $1.4 billion (10%), while industrials, financial services, technology, utilities, and materials accounted for smaller shares.
Market Performance and Outlook
GCC equity markets mostly ended 2024 on a positive note. The Dubai Financial Market outperformed with a 26.9% increase, followed by Boursa Kuwait at 12.4%. Meanwhile, Muscat Securities Market and Bahrain Bourse saw marginal gains of 1.3% and 1.2%, respectively. However, Qatar Stock Exchange and Abu Dhabi Securities Exchange recorded declines of 1% and 1.7%, respectively.
Saudi IPOs posted strong post-listing performances, with Miahona Company’s shares surging 147% and Purity for Information Technology gaining 118% within their first 30 days. Conversely, Pan Gulf Marketing and Yaqeen Capital recorded the steepest declines of 35% and 28%, respectively.
Looking ahead, Saudi Arabia plans over 50 IPOs in the next two years, with seven already approved for listing in early 2025. The UAE, Qatar, and Oman are also preparing for increased IPO activity, as companies begin appointing banks for potential offerings.
