(IPOs) in GCC Markets Raise $3.4 Billion in H1, Industrial Sector Holding a 43% Share, Followed by Real Estate at 17%

A report issued by Kuwait Financial Centre (Markaz) on “Initial Public Offerings in GCC Markets” indicated that the region witnessed 24 IPOs in the first half of 2025, with a total value of $3.4 billion. This represents a 6% decrease compared to the first half of 2024, when the value of IPOs reached $3.5 billion through 23 IPOs.

The report showed that Saudi Arabia topped the total number of IPOs during the first half of the year, with 22 IPOs raising a total value of $2.8 billion, a 36% increase compared to the value during the first half of 2024. This represents 85% of the total value of IPOs in Gulf stocks during the first half.

Alpha Data, a UAE-based software company, was the only IPO in the country during the first half of 2025, raising $163 million.

This represents an 88% decrease in the value of GCC IPOs compared to the same period last year. In Oman, Asyad Shipping was the only IPO during the first half of the year, raising $333 million. Kuwait, Qatar, and Bahrain did not witness any IPOs during the first half.

The industrial sector accounted for $1.4 billion, representing 43% of the total value of GCC IPOs during the first half of 2025. The real estate sector followed, representing 17% of the total value of GCC IPOs during the first half of 2025, with a value of $576 million, including Umm Al-Qura Development and Construction Company, which raised $523 million.

The healthcare sector raised $505 million. The banking, technology, consumer staples, materials, and consumer discretionary sectors also contributed 12%, 6%, 4%, 3%, and 1%, respectively.

By the end of the first half of 2025, 10 of the 24 initial public offerings (IPOs) had positive returns relative to their offering price. Asyad Shipping, which listed on March 12, 2025, achieved the highest gains, rising 835% by the end of the period.

Umm Al-Qura Development and Construction Company in Saudi Arabia followed, recording a 51% increase during the first half of the year. Flynas, the largest IPO on the Saudi Tadawul and in the region during the first half of 2025, recorded a 3.4% decline in its performance on its first day of trading, ending the period 0.2% lower than its offering price.

Conversely, several companies in the materials sector experienced negative returns relative to their offering price. Gulf Hills Company’s stock fell by 30%, Dokhoon National Trading Company’s stock fell by 27%, and Maintenance Machinery Company’s stock fell by 26% during the first half of 2025.

GCC stock market indices witnessed mixed performance during the first half of 2025. The Kuwait Stock Exchange led the region in performance, rising 18.1% since the beginning of the year, followed by the Dubai Financial Market with a 10.6% increase. The Abu Dhabi Securities Exchange and the Qatar Stock Exchange also recorded increases of 5.7% and 1.7%, respectively. In contrast, the Muscat Securities Market witnessed a decline of 1.7%, the Bahrain Bourse declined by 2.1%, and the Saudi Stock Exchange (Tadawul) recorded a decline of 7.6%.

Saudi Arabia is expected to continue its dominance in the IPO market, with strong activity expected in several sectors, led by the listings of companies under the Public Investment Fund. In contrast, the UAE’s IPO market is expected to see activity in the industrial and technology sectors. Additionally, Kuwait’s Capital Markets Authority has officially launched a new regulatory framework to support the listing and trading of startups on the Kuwait Stock Exchange, a move aimed at encouraging public offerings and enhancing the attractiveness of the Kuwaiti market.