The Gulf Cooperation Council’s initial public offering landscape experienced a significant contraction in 2025, with total capital raised plummeting to $6.6 billion—marking the lowest fundraising level since the pandemic era. This represents a nearly 50% decrease from the previous year’s $12.9 billion, continuing a downward trend from the peak of $22 billion recorded in 2022.
Despite the substantial decline in overall value, Saudi Arabia and the United Arab Emirates maintained their commanding positions within the regional IPO ecosystem. Saudi Arabia accounted for 63.5% of the total capital raised, while the UAE contributed 28.7% of the regional total. In terms of transaction volume, Saudi Arabia demonstrated even greater dominance with an 80% market share, primarily driven by smaller-scale listings across consumer goods, industrial, and services sectors.
The most notable transactions included Saudi low-cost carrier flynas, which raised $1.1 billion, and Dubai Residential REIT, which secured $600 million in its market debut.
Industry experts from Arthur D. Little emphasize that the leadership of these two nations extends beyond mere numerical dominance. Regulatory modernization initiatives, reforms to foreign ownership restrictions, and enhanced governance requirements have fundamentally transformed market dynamics. These developments have elevated investor expectations regarding transparency, strategic clarity, and long-term value creation.
According to Dhiraj Joshi, Partner at Arthur D. Little, “The UAE and Saudi Arabia have become the reference markets for IPOs in the GCC, not just in terms of activity, but in how capital markets function and how investors assess risk and value. Their scale, regulatory maturity, and depth of investor participation are shaping expectations across the region.”
Martynas Vaikasas, Principal at the consulting firm, added that companies listing in these markets now operate within “a far more competitive and transparent environment” that establishes clear benchmarks for the wider GCC region. Success in this evolved landscape increasingly depends on compelling equity narratives supported by credible strategic vision and disciplined capital allocation.