Markets in the MENA region saw 14 IPOs during Q2 2025, raising $2.5 billion in proceeds. This marks a 4 percent increase in capital raised when compared to Q1 2025, demonstrating sustained investor appetite and the resilience of regional capital markets.
“The second quarter of this year has reinforced the MENA region’s position as a resilient and dynamic IPO market. In spite of investors practicing caution, we have seen strong growth. The diversity of sectors represented, along with milestone listings such as Dubai Residential REIT, highlights the depth of opportunities across the region. With a healthy pipeline for the remainder of 2025, we expect this momentum to continue,” said Brad Watson, MENA EY-Parthenon Leader.
flynas IPO accounts for 44 percent of total proceeds
In Saudi Arabia, the second quarter’s largest IPO was flynas, which debuted on the Tadawul Main Market and accounted for 44 percent of Q2’s total proceeds, said EY in its latest MENA IPO Eye report. This was followed by Specialized Medical Company, which raised $500 million, and United Carton Industries Company, with $160 million.
In the UAE, the Dubai Financial Market (DFM) welcomed Dubai Residential REIT, which raised $584 million. The listing marks a significant milestone as the largest Real Estate Investment Trust (REIT) by market capitalization in the GCC and the first pure‑play residential leasing REIT in the region.
While after‑market performance varied, with 10 of the 14 IPOs closing below their offer price on debut, five listings recorded gains, reflecting a cautious investor sentiment. Companies are increasingly strategic about market timing, carefully assessing investor sentiment and macroeconomic conditions before going public.
In terms of equity market performance, the Boursa Kuwait Premier Market Index led regional gains in Q2 2025, rising 17.2 percent, while other markets posted mixed results.
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Secondary listings in focus amid ongoing market uncertainty
The report added that the nature of MENA IPO proceeds in Q2 2025 reflects a notable shift, with secondary listings accounting for 64.3 percent of all IPOs, up from 35.7 percent in Q1 2025. This suggests a preference among issuers for shareholder exits over new capital raising, further demonstrating a more cautious approach amid ongoing market uncertainty.
“KSA continues to set the pace for IPO activity in the MENA region, attracting strong interest across multiple sectors. At the same time, landmark transactions in the UAE show how regional exchanges are evolving to meet the needs of a broadening investor base. This diversity, combined with continued enhancements in market governance, is key to sustaining long‑term growth,” said Gregory Hughes, MENA EY-Parthenon IPO Leader.
The outlook for MENA IPOs in the second half of 2025 remains strong, supported by a healthy pipeline of 14 planned listings across a range of sectors. KSA continues to lead with 10 anticipated offerings, while upcoming activity from Egypt, Tunisia and Morocco highlights the region’s expanding market depth and diversification.
