Middle East investors turn cautious as IPO momentum stalls

Middle East IPOs slowed to a crawl this year as investors have pulled back from public markets that surged following the global pandemic.

The 2024 boom was driven by high oil prices, strong government spending and privatizations, which helped companies in the UAE and Saudi Arabia raise nearly $10 billion through initial stock offerings in 2024, the Financial Times reports.

In 2025, the funds raised through IPOs have sunk to $6.5 billion. Investor appetite has been hit by weak post-listing performance, with shares of companies such as Pure Health, ADNOC Drilling and Americana Restaurants struggling to generate strong gains after their debuts.

Saudi Arabia’s venture capital firms, meanwhile, are increasingly looking to mergers and acquisitions to exit investments amid the Tadawul Stock Exchange’s weak performance, Bloomberg reports.

Investors such as Riyadh-based Merak Capital and Impact 46 say they prefer buying and selling stakes in private companies because going public has become more expensive and volatile.