Fueled by Vision 2030’s strategic reforms and broad sector growth, Saudi Arabia is transforming its capital markets into a dynamic hub for investors.
In the first quarter of 2025, Saudi Arabia reaffirmed its position as the MENA region’s undisputed IPO leader.
It accounted for 12 of the region’s 14 listings and raising a total of USD 2.4 billion—a striking 106% increase year-over-year. Far from a short-term surge, this growth reflects the country’s deliberate efforts to diversify its economy and strengthen investor confidence across key sectors.
The Tadawul Main Market hosted five IPOs worth $1.8 billion, while the Nomu parallel market facilitated seven smaller listings totaling $69 million.
The most significant offerings included Umm Al Qura for Development & Construction, which raised $523 million, Almoosa Health at $450 million, and Derayah Financial at $400 million.
These figures not only illustrate growing investor appetite but also the broadening of Saudi Arabia’s capital markets beyond the oil and gas sector.
Saudi Arabia’s IPO boom is driven by strategic economic reforms to reduce the Kingdom’s reliance on oil revenue by developing high-growth sectors like healthcare, real estate, technology, and financial services.
This transformation is supported by enhanced regulatory frameworks, modernized market infrastructure, and improved governance standards that have bolstered investor confidence.
Additionally, government-backed initiatives to stimulate gross fixed capital formation and private sector investments have unlocked significant capital flows, positioning the region as an attractive destination for both domestic and global investors seeking stability and growth amid global market volatility.
This performance builds on MENA’s robust IPO showing in 2024, when the region accounted for 10% of global IPO proceeds—raising $12.6 billion from 54 listings.
That marked a 17.6% increase in capital raised and a 12.5% jump in deal volume. It was one of the few bright spots in a global IPO market still finding its footing.
While the Americas saw a 67% rise in proceeds to $17.8 billion in H1 2024, investor sentiment remained fragile. Europe led global IPO volume for the first time since 2008, but major hubs like London continued to struggle with thin liquidity and fewer listings.
Meanwhile, Asia-Pacific experienced a sharp contraction—IPO proceeds dropped 73% and deal volume fell 43%, pressured by ongoing macroeconomic uncertainty and regional geopolitical tensions.
MENA, in contrast, has emerged as a steady and resilient performer. At the heart of this is Saudi Arabia’s Vision 2030, a national transformation agenda aimed at reducing dependence on oil by promoting investment in tourism, healthcare, tech, and financial services.
That strategy is yielding visible results. In Q1 2025, real estate management contributed the largest share of IPO proceeds (28%), followed by healthcare equipment and services (24%), financial services (21%), and consumer discretionary and retail (17%).
Complementing sectoral diversification is a surge in capital formation. In 2024, Saudi Arabia’s gross fixed capital formation reached $355 billion—38% above target. Private sector investment also expanded by 11% year-over-year and now makes up 89.16% of total investment.
Tadawul, the Saudi stock exchange, has continued to modernize by enhancing its regulatory framework, introducing new financial instruments, and prioritizing governance—efforts that have translated into stronger investor participation and confidence. In Q1 2025 alone, 11 out of 14 IPOs in the MENA region delivered positive post-listing returns.
The IPO pipeline for the rest of 2025 is equally promising. In Saudi Arabia, 17 companies have already received approval from the Capital Market Authority (CMA) to go public. Across the broader MENA region, 38 companies and 22 funds are preparing to list on local exchanges.
