According to the latest IPO Watch report from PwC Middle East, businesses in the Gulf Cooperation Council (GCC) amassed $2.5 billion through initial public offerings (IPOs) in the second quarter of 2025. This demonstrates strong investor interest in regional stocks, despite ongoing global uncertainties.
Saudi Arabia was the leading force in IPO activities, contributing 76% of the total proceeds. Significant deals such as Flynas, marking the first airline IPO in the GCC in over a decade and a half, along with the Specialized Medical Company’s $500 million fundraising in June, were key contributors to this figure.
During this quarter, three IPOs managed to secure over $500 million each, indicating a trend towards larger transaction sizes as demand from institutional investors remains high.
The region saw a total of four IPOs on major exchanges, accompanied by eight listings on Saudi Arabia’s Nomu Parallel Market, which together raised $128 million, an increase from $81 million in the same quarter of the previous year.
Slight Decrease in GCC IPO Listings for Q2
Although the total number of listings saw a minor decrease, IPO proceeds were relatively consistent with Q2 2024’s $2.6 billion, reflecting ongoing investor confidence in the GCC’s capital markets.
In the United Arab Emirates, the Dubai Residential REIT marked the first IPO for a real estate investment trust since 2014, highlighting a revived interest in alternative investment assets. The Dubai Financial Market (DFM) and the Abu Dhabi Securities Exchange (ADX) also achieved impressive quarterly gains of 15% and 7%, respectively, supported by recoveries in the real estate, financial, and industrial sectors.
“The global market instability at the beginning of Q2, primarily due to doubts over international trade tariffs, understandably led some companies to reconsider their IPO strategies,” commented Muhammad Hassan, PwC Middle East’s Capital Markets leader and partner. “Despite the reduction in IPO activities across the GCC, both Tadawul and DFM recorded notable IPOs such as Flynas and Dubai Residential REIT. The outlook for the remainder of the year remains cautiously optimistic, influenced by macroeconomic and geopolitical conditions.”
Increase in Bond and Sukuk Issuance in Q2
There was also a significant rise in bond and sukuk issuances compared to the same timeframe last year.
The total bond issuance reached $4.9 billion in Q2 2025, a substantial increase from just $0.5 billion in Q2 2024, while sukuk issuance increased to $11.4 billion from $9.7 billion during the same period.
The performance of equity markets varied. Early in the quarter, the Saudi Arabia Tadawul index fell 6% due to a nearly 20% decline in Brent crude prices. However, a recovery in the latter part of Q2 restored investor confidence throughout the region.
PwC noted that although Q3 is typically characterized by lower IPO activity, a robust and diverse pipeline exists across the GCC, with many issuers planning to pursue listings in late 2025 and early 2026.