MENA becomes a Bright Spot in a Struggling IPO Market
While global IPO markets have collapsed by 75% in value since their 2021 peak, falling from $460 billion to just $121 billion in 2024, the Middle East and North Africa (MENA) region has emerged as a surprising success story. In a year marked by high interest rates (4.5%), geopolitical tensions, and investor caution, MENA not only maintained IPO momentum but increased its share of global IPO proceeds to 10%, up from previous years.
This resilience wasn’t accidental. It was driven by strategic regulatory reforms, mega-deals, and a deliberate push toward economic diversification. As traditional IPO hubs like the U.S. and China struggled, MENA’s markets, particularly Saudi Arabia, the UAE, and Oman, proved that well-structured capital markets can thrive even in turbulent times.
1. The Global IPO Slump: High Rates, Volatility, and Investor Caution
2024 was a brutal year for public listings worldwide. Key factors behind the 75% drop in global IPO proceeds included:
- High Interest Rates (4.5%): Made debt financing expensive and equity markets less attractive.
- Market Volatility: Geopolitical tensions (e.g., U.S.-China trade disputes, Middle East conflicts) spooked investors.
- Shift in Investor Preferences: Institutional investors favored profitable companies over high-growth startups, leading to fewer listings from growth-stage firms.
Even historically strong markets faltered:
- U.S. IPO proceeds dropped by ~75% from 2021 highs.
- China’s mainland exchanges saw a sharp slowdown, with companies opting for Hong Kong or U.S. listings instead.
- Latin America struggled, with Brazil’s high rates stifling activity.
Yet, MENA defied the trend.
2. MENA’s Unlikely Resilience with Volume and Value Growth
A. 5% of Global IPO Volume, But 10% of Proceeds
While MENA accounted for just 5% of global IPO volume in 2024, it contributed a staggering 10% of total proceeds. This discrepancy stems from:
- Larger Average Deal Sizes: MENA’s average IPO raised $272 million, far exceeding the global average.
- Mega-Deals: State-backed listings (e.g., OQ Exploration & Production’s $2B IPO in Oman, Talabat’s $2B Dubai listing) drove outsized proceeds.
- High Free Float Requirements (25-30%): Forced companies to list at scale, boosting liquidity.
B. Saudi Arabia and UAE Led the Charge
- Saudi Arabia dominated with 37 IPOs in 2023 alone, many on the Tadawul Main Market and Nomu Parallel Market.
- UAE saw blockbuster listings like Lulu Retail ($1.7B) and ADNH Catering ($235M) on the Abu Dhabi Securities Exchange (ADX).
- Oman made waves with Asyad Shipping’s $333M IPO, part of a broader privatization push.
C. Sector Diversification Beyond Oil
While energy still played a role, 2024 saw IPOs in tech, healthcare, retail, and fintech, reflecting MENA’s economic diversification.
3. Why did MENA thrive? Regulatory reforms, state backing, and investor confidence
A. Strategic Privatizations and State-Led Listings
- Saudi Aramco’s 2019 IPO ($29.4B) set a precedent, proving MENA markets could handle mega-listings.
- Oman’s privatization drive (e.g., OQEP, Asyad Shipping) attracted foreign investment.
- UAE’s focus on ESG (e.g., mandatory carbon reporting from May 2025) boosted investor appeal.
B. Regulatory Innovations
- Nomu Parallel Market: Saudi Arabia’s junior market helped smaller firms go public.
- Family Business Listings: GCC exchanges actively encouraged family-owned businesses to IPO, deepening market liquidity.
C. Strong Post-IPO Performance
- First-day returns averaged 19.5% in MENA (vs. 8.2% in 2014), with Saudi IPOs delivering 22.3%.
- Retail investor participation surged, particularly in Saudi Arabia and the UAE.
4. Can MENA Sustain this Momentum?
A. 2025 Pipeline Looks Strong
MENA’s IPO pipeline for 2025 suggests the region’s capital markets boom is far from over. Several high-profile listings are in preparation across key markets:
Saudi Arabia: The GCC’s IPO Powerhouse
- Flynas: The low-cost airline is preparing a potential $1 billion IPO on Tadawul, capitalizing on Saudi Arabia’s booming tourism sector (targeting 150 million visitors annually by 2030). The listing would follow Riyadh Air’s $3 billion funding round, highlighting investor appetite for aviation growth stories.
- Ejada: This IT services firm represents Saudi’s growing tech sector, with its IPO expected to value the company at $500 million. It follows 2023’s successful Jahez ($400 million) and Elm ($800 million) tech listings.
- Panda Retail Company: The grocery chain’s planned $700 million listing ties into Saudi’s consumer boom, with retail sales projected to grow 8% annually through 2025.
UAE: Diversification Beyond Oil
- Etihad Airways: After Abu Dhabi’s ADQ acquired a majority stake, the airline is restructuring for a potential $2.5 billion IPO in 2025. This would mirror Dubai’s successful 2022 listing of Salik (toll operator), which drew $51 billion in orders.
- Amanat Holdings: The healthcare/education investment firm’s planned $300 million IPO reflects two of MENA’s fastest-growing sectors. UAE healthcare spending is projected to reach $24 billion by 2025 (7% CAGR).
Egypt: North Africa’s Comeback Story
Following United Bank’s successful $92 million IPO (oversubscribed 5.3x), at least 5 state-owned firms are preparing listings as part of Egypt’s $6 billion privatization program. Key sectors include:
- Energy: ENN Energy’s Egyptian unit considering $500 million listing
- Banking: Banque du Caire’s long-delayed IPO may finally proceed
- Tourism: Red Sea resort developers eyeing capital market funding
Sector Diversification Breakdown (2025 Projections)
| Sector | Expected IPO Value | % of MENA Total |
| Energy | $3.5 billion | 28% |
| Tech | $2.1 billion | 17% |
| Healthcare | $1.8 billion | 14% |
| Consumer | $1.5 billion | 12% |
| Financials | $1.2 billion | 10% |
| Other | $2.0 billion | 19% |
B. Risks to Watch
- Geopolitical Tensions: Conflicts in Gaza and Sudan could disrupt trade.
- Oil Price Volatility: Despite diversification, hydrocarbons still influence regional economies.
- Global Macro Shocks: A U.S. recession or further rate hikes could dampen investor appetite.
C. Long-Term Outlook
MENA is no longer just an oil story. With $2T+ in planned infrastructure projects, a booming fintech sector ($700M invested in 2024), and renewable energy expansions (150GW by 2030), the region is positioning itself as a sustainable capital markets hub.
1. The $2 Trillion Infrastructure Boom
MENA’s project pipeline includes:
- Saudi Giga-Projects: NEOM ($500B), Qiddiya ($8B), Red Sea Project ($3B)
- UAE Diversification: Abu Dhabi’s Masdar City ($20B), Dubai Metro Expansion ($4B)
- North Africa Transport: Egypt’s high-speed rail ($23B), Morocco’s port upgrades ($1.5B)
These projects create:
- 200+ potential IPO candidates in construction/services
- New asset classes like infrastructure REITs
- Spin-off opportunities (e.g., NEOM’s tech subsidiaries)
2. The Fintech Revolution
- 2024 Funding: $700 million across 125 deals
- Key Growth Areas:
- BNPL (ValU, Tamara)
- Digital Banking (STC Bank, Zand)
- Islamic Fintech (expected to grow at 17% CAGR)
- Regulatory Support: Saudi’s Sandbox, UAE’s Digital Assets Law
3. Renewable Energy Transition
- 150GW Target by 2030 (Current: 25GW)
- Major Projects:
- Saudi’s $5B Sudair Solar Plant
- UAE’s Al Dhafra (2GW) solar park
- Morocco’s Noor Ouarzazate complex
- IPO Potential: ACWA Power’s 2021 listing ($1.2B) shows investor appetite
Conclusion: Is MENA a Blueprint for Emerging Markets?
MENA’s IPO success in 2024 wasn’t luck, it was the result of strategic planning, regulatory foresight, and a focus on large, liquid listings. While global markets floundered, MENA proved that quality listings attract capital, even in uncertain times.
As Gregory Hughes of EY noted, “The MENA region is no longer just a niche player, it’s a legitimate IPO hub competing with traditional financial centers”. If the momentum continues, MENA could soon rival Asia and Europe as a go-to destination for IPOs.