Optimism remains high across the Middle East and North Africa (MENA), with the region looking to strengthen the capital markets infrastructure and boost future liquidity.
MENA markets enjoyed a successful 2024, seeing a total of 54 initial public offerings (IPOs) last year, raising a total $12.6billion, according to the MENA IPO Eye Q4 2024 report by EY. These numbers represent a 12.5 per cent increase in the number of IPOs and a 17.6 per cent rise in proceeds.
This year-on-year increase in proceeds for 2024 was impacted by a number of large-value IPOs listed during the last quarter of the year.
Of these, Talabat Holding plc, which listed on the Dubai Financial Market (DFM), raised the highest proceeds, contributing 25.8 per cent of the overall proceeds for Q4 2024. It was followed by OQ Exploration & Production, which listed on the Muscat Stock Exchange (MSX) and raised $2billion – the largest IPO in Oman to date – and accounted for 25.3 per cent of the total quarterly proceeds.
“The year 2024 ended on a strong note with 54 IPOs in total, the highest in MENA over the past seven years,” explained Brad Watson, EY MENA strategy and transactions leader. “The region has been one of the busiest when compared to the global market. The momentum is expected to continue into 2025, with companies from various sectors announcing their intention to come to market.
“In addition, regional exchanges are actively working on initiatives to promote family-owned businesses and small to medium enterprises, aiming to boost future liquidity. The market is also anticipating the Arena platform from the DFM, which is expected to launch in 2025.”
MENA listing growth
During Q4 2024, 25 IPOs raised $7.9billion – a 32 per cent increase in number and a 59.4 per cent surge in proceeds when compared to Q4 2023.
The Kingdom of Saudi Arabia (KSA) dominated the region’s IPO activity with 17 out of the 25 listings in Q4 2024, with total proceeds of US$1.2billion.
Five IPOs took place on the Tadawul Main Market with total proceeds of $1.1billion. Arabian Mills for Food Products Company and United International Holding Company marked the highest proceeds at $0.3billion each. The remaining 12 IPOs, raising $119million in total, were listed on the Nomu – Parallel Market.
In 2024, various sectors contributed to IPO funds raised in KSA, with the largest shares coming from commercial and professional services at 20 per cent, materials at 12.5 per cent, food and beverages at 10.0 per cent and healthcare equipment and services at 10.0 per cent.
Sowing seeds for future growth
For the UAE, ESG goals remain a priority. The country has introduced a law, effective May 2025, that requires companies to report carbon emissions. Additionally, businesses must adopt decarbonisation strategies that include renewable energy and carbon offsetting.
Applicable to all sectors, including free zones, the law sets penalties for noncompliance, encourages research and development and promotes carbon trading through a dedicated registry. These measures align with the UAE’s 2050 net-zero ambitions and are likely to influence IPO market dynamics as companies prioritise sustainability to attract investors.
Gregory Hughes, EY MENA IPO and transaction diligence leader, also commented: “The last quarter of 2024 was a bumper quarter for the MENA region with 25 IPOs, making up 46 per cent of the total IPO activity in that year. Nomu listings accounted for 50 per cent, indicating robust activity in the junior Saudi market. The region also continues to drive positive developments in areas such as governance and ESG to enhance its attractivity to local and international investors alike.”
The outlook for MENA IPOs in 2025 remains positive, with 38 companies and 22 funds intending to list on the region’s exchanges across a variety of sectors. Among the GCC countries, KSA remains the lead in listings with 27 companies in the pipeline, followed by the UAE with three, and Qatar with one.
Outside of the GCC, Egypt has announced five IPOs, and Algeria has two businesses intending to list. Notable companies, such as Etihad Airways PJSC and Amanat Holdings from the UAE, as well as Panda Retail Company and Riyad Capital from KSA, are among those considering IPOs in 2025.
