Today's Edition
ABU DHABI (ALETIHAD)
Initial public offerings (IPOs) in the Middle East and North Africa (MENA) region raised a total of $7.3 billion from 49 listings in 2025, according to the latest IPO Eye report by Ernst & Young (EY).
On a year-on-year basis, the number of IPOs declined by 9.3% from 54 listings in 2024, while total proceeds fell by 41.8% compared with $12.6 billion raised in the previous year.
Despite this moderation, EY said issuance activity during the year remained stable, supported by ongoing economic diversification initiatives, evolving regulatory frameworks and increasing depth in regional capital markets.
In the fourth quarter of 2025, the MENA region recorded 10 IPOs that together raised $1.7 billion. Morocco’s Société Générale des Travaux du Maroc (SGTM) generated the highest proceeds during the quarter, raising $525.4 million through its listing on the Casablanca Stock Exchange, accounting for 30.4% of total IPO proceeds.
ALEC Holdings followed, raising $381.2 million through its listing on the Dubai Financial Market, representing 22% of total proceeds in the quarter.
Commenting on the findings, Brad Watson, EY-Parthenon MENA Leader, said the level of IPO activity reflected the continued maturity of capital markets across the region.
“IPO activity in the final quarter of 2025 reflects the continued maturation of MENA capital markets. Issuers and investors remained focused on quality, fundamentals and execution, pointing to a more sophisticated market environment,” Watson said.
He added that the depth of available capital and the diversity of listings underscored the region’s growing role as a key destination for public market activity.
According to the report, IPOs during the fourth quarter spanned a wide range of sectors, including real estate, construction, energy, retail, transport and industrials, reflecting continued efforts to broaden capital markets and support economic diversification across the region.
Saudi Arabia remained the most active IPO market in the fourth quarter, recording six listings that together raised $561.6 million. Kuwait, Morocco and the UAE accounted for the remaining IPO activity in the region during the quarter.
Gregory Hughes, EY-Parthenon MENA IPO and Deals Leader, said ongoing regulatory development and improvements in governance standards were strengthening investor confidence and market accessibility.
“The ongoing expansion of regulatory frameworks and governance standards across regional markets is enhancing investor confidence and ease of access to markets,” Hughes said, adding that these developments were reinforcing capital market infrastructure and sustaining interest among companies preparing to list.
Looking ahead, the report said IPO prospects for the MENA region remain positive, with 18 companies and funds indicating their intention to list on regional exchanges in early 2026. Expected listings are projected to span sectors including logistics, utilities, technology, manufacturing and heavy industries.
