An analysis of the initial public offering market by the Gulf Cooperation Council, which was launched in 2025, shows that Saudi Arabia was the largest in terms of proceeds raised, amounting to $4.1 billion.
Kuwait Financial Center, also known as Markaz, in its latest report, reported that the Kingdom contributed to 79 percent of the total GCC IPO proceeds in the year, which highlights the increasing interest of investors in the capital markets of the country.
Saudi Exchange experienced 13 IPOs with total capital injection amounting to $3.7 billion, and the parallel market Nomu issued 23 offerings, raising $336 million in 2025.
The establishment of a strong capital market ecosystem is important to the GCC countries, which are still trying to engage in economic diversification projects to minimize dependence on oil.
In general, there was an increase of 40 offers in 2025 with a total amount of $5.1 billion raised in the GCC region, which is a reduction of 61 percent relative to the year before.
Markaz said, “Corporate IPOs raised $3.9 billion, or 76 percent of the total GCC IPO proceeds during the year, through 37 offerings. While IPOs offered by government-related entities only accounted for 24 percent, amounting to $1.2 billion through 3 offerings.”
However, the UAE followed with a second-best ranking of $544 million in proceeds in two IPOs in the region. The Abu Dhabi Securities Exchange collected $163 million from the IPO of Alpha Data, and the Dubai Financial Market collected $381 million from the IPO of Alec Holdings.
Oman surged $333 million, or 7 percent of total GCC IPO proceeds, through the Asyad Shipping Co. IPO on the Muscat Securities Market. The IPO of Action Energy Co. was done in Kuwait in the fourth quarter of 2025. The offering had a value of $180 million, which was 4 percent of the annual GCC IPO proceeds.
The industrials industry generated $1.9 billion, constituting approximately 37 percent of overall proceeds in 2025, with the highest proceeds amount by flynas of Saudi Arabia, raising $1.1 billion.
This was then followed by the real estate industry of $1.2 billion, or 23 percent of total proceeds, of seven IPOs, such as Umm Al Qura for Development and Construction and Dar Al Majed Real Estate Co.
The healthcare sector increased $508 million, representing 10 percent of total proceeds, through three IPOs: SMC Hospitals on Tadawul’s Main Market and Basma Adeem and Wajd Life Trading Co. on the Nomu parallel market.
Markaz stated, “The consumer discretionary sector saw $479 million in proceeds, constituting 9 percent of the total proceeds, through 10 IPOs, all in Saudi Arabia, while the financial services sector saw $400 million from Derayah Financial Co’s IPO on Tadawul, constituting 8 percent of the total GCC IPO proceeds during the year.”
The technology and energy sectors had the next-largest proceeds at 4 percent each, with materials and consumer staples following at 3 percent each. The top IPO performers of 2025 were associated with appealing pricing of the offer, good liquidity in the post listing, and exposure to industries that are overtly growth-driven or defensive in nature.
Markaz reported that the interest in listings in Tadawul, both in the Main Market and Nomu, was favored by the wide involvement of investors and long-term demand.
Ratio Speciality Co., which was listed on Nomu in March 2025, was the biggest winner, and its share price increased 190 percent since its offering price of SR10.
In comparison, other IPOs performed poorly and were burdened by excessive valuation, insufficient liquidity, and exposure to low-growth or margin-strained sectors.
Markaz added, “Companies faced structural challenges and muted post-listing investor interest, which negatively impacted performance throughout the year. The weakest performer was Smoh Almadi, listed on Nomu in January 2025, with shares that dropped by 60 percent after its offering price at SR22.”
Markaz indicated that the Muscat Securities Market of Oman had become the most successful index in the GCC region in 2025, increasing by 28.1 percent annually.
Therefore, Kuwait was in second place with gains of 25.3 percent. Dubai Financial Market increased 17.2 percent, and Abu Dhabi Exchange increased 6.1 percent.
Bahrain Bourse and the Qatar Stock Exchange registered a growth of 4.1 percent and 1.8 percent, respectively. Saudi Arabia’s Tadawul All Share Index is down by 12.8 percent during the year.
In the future, Markaz suggests that the GCC IPO activity will increase in 2026 compared to 2025 due to the steady global interest rates and current divestment programs.
The report indicated “With strengthening investor confidence and evolving regulatory frameworks, the region is likely to attract a broader range of companies preparing for public offerings.”
