The Gulf region’s IPO frenzy shows no signs of slowing, with Saudi and UAE firms lining up stock market listings across sectors, expected to attract more global capital as the markets deepen, analysts say.

The first quarter of this year saw 10 IPOs raise $1.2 billion, all in Saudi Arabia and the UAE – a sustained pace that promises well for continued momentum this year and possibly beyond.

Shahid Nazir added that companies in the digital economy, like fintech and digital services, and family-owned businesses could be considering IPOs.

UAE, Saudi diversification drives fuel flurry of listings

“The surge in IPO activity in the UAE and Saudi Arabia signifies a growing confidence in the region’s economic prospects and capital markets;’ said Shahid Nazir.

“The successful IPOs in the region are likely to encourage more companies to consider IPOs,” he added, citing economic diversification, regulatory support, and investor confidence as key drivers.

Risks, Readiness Concerns

Even as they eye rich public market valuations though, firms must carefully weigh the pros and cons before pulling the trigger on an IPO, experts cautioned.

Yet, experts reckon such risks are unlikely to derail the IPO juggernaut as long as market conditions remain favorable.

The IPO momentum should not abate unless we face a critical global event such as a recession, market consolidation, or significant geopolitical escalation.